Daniel Martín
By Daniel Martín on May 08, 2024

AI in HR: How the Future of HR looks like

In this article,we will explore in-depth the impact of artificial intelligence (AI) in the field of Human Resources (HR). We will discover how AI is transforming personnel management in organisations, from the automation of administrative tasks to candidate selection and talent management.
Additionally, we will analyse the disadvantages of AI in HR, focusing on how this technology is improving the efficiency of processes and decision making, but also poses ethical and privacy challenges that must be considered.
In addition,we will explore how the future of AI in HR is shaping up towards a greater flexibility and adaptation to the unique needs of each employee and company. Join us on this journey to discover how AI is redefining the HR function in today's world of work!
Table of content:

What does AI applied to Human Resources mean?

Artificial intelligence (AI) applied to Human Resources (HR) refers to the use of AI techniques and technologies to improve and optimise processes and decisions related to personnel management.
 This involves the use of algorithms, data analysis, and automation of processes and workflows to address a variety of tasks and challenges in the HR field.

How AI impacts Human Resources. 9 use cases that you should take into account

Artificial intelligence (AI) is having a significant impact on the HR function in many companies:
  1. Automation of administrative tasks: AI can automate repetitive and administrative tasks in HR, such as processing payroll, document management, holiday and absences management,, to name a few.
This frees up time for HR professionals to focus on more strategic, high-value tasks thanks to the value of workflow automation and the power ofthe data.
Think, for example, about the value of approving vacations or manage your employees work shifts in a simple and easy way, with a single click, and then be able to have more data on your company and know whether or not there is a problem in it.
  1. Selection of candidates: AI is used in candidate selection to analyse resumes, evaluate skills and conduct initial interviews through chatbots or virtual assistants.
Although that has its ethical dangers, there are already systems that help those responsible to better understand the flow of candidates that go through the different phases and thus allow them to have a clear picture of everything. Furthermore, the data that will be accompanied by these processes and from which the system is fed, will allow us to discover stagnations, unnecessary phases where candidates get stuck.
On the other hand, and just to name a few of the features in AI and selection, there are tools that already allow us to publish several offers at the same time on different portals, so we will save a lot of time in those processes where two or more software are integrated.
  1. Performance management: AI can help identify high-potential employees and develop personalised development plans.
You can also analyse performance data and feedback to identify trends and areas for improvement in talent management. People Analytics, here we go!
Besides, AI can provide more objective analytics and data on employee performance, making it easier to make decisions based on data rather than subjective judgments.
  1. Training and development: AI can offer personalised training and development recommendations for employees, identifying skills gaps and proposing specific courses or resources.
  1. HR Analytics: AI makes it easy to analyse large data sets to identify trends in the workforce, such as employee turnover, retention, diversity and inclusion. This allows companies to make more informed decisions about managing their staff.
  1. HR Bots and other employee assistants: AI-based chatbots and virtual assistants can provide answers to frequently asked employee questions, manage time off requests, and provide information on company policies and procedures.

  2. Emphasise culture and commitment: The new tools toothey can help measure employee satisfaction and organisational culture through surveys, allowing companies to address engagement and well-being issues and act accordingly.
  1. Helps you automate onboarding processes: AI can track the progress of new employees in their onboarding process,making sure that all necessary tasks and stages are completed.
Additionally, there are already tools that can be tailored to the specific onboarding processes of each employee and company, providing resources and guidance tailored to the employee's position and skills. Or, as it also happens with OpenHR, allowing workflows for each specific process and adapting to each department of the company.

Disadvantages of artificial intelligence in HR

The implementation of artificial intelligence (AI) in Human Resources (HR) has its challenges and problems that those responsible must know how to deal with. Therefore, since knowledge is power, we leave you some ideas that may make you think (I hope, the truth).
Algorithmic bias refers to a system where a computer or software can perpetuate biases present in the data, which can lead to biased decisions and discrimination in HR.
Another important limitation is the lack of empathy of AI, as it lacks the ability to empathise and understand human emotions, which can be a problem in situations that require genuine and emotional interaction.
Data privacy and security are also areas of concern, as the collection and use of sensitive employee data must be addressed rigorously to avoid privacy breaches and security issues.
Lack of context is another disadvantage, as AI makes decisions based on objective data, but may lack the ability to understand specific context and circumstances, which can lead to inappropriate decisions in complex situations.
Lack of adaptability AI is another challenge, as it can be inflexible and does not always adapt well to unforeseen or unusual situations, limiting its usefulness in exceptional cases.
Lack of intuition and creativity is a fundamental limitation, as AI cannot provide the intuition, creativity and human judgment needed in managing people and solving complex problems. Better yet, we continue to leave that to those responsible for human resources.
Furthermore, and to add alast aspect, really, and although it may seem ironic, AI comes with a time cost that must be measured by those responsible. In order for the systems to work, they need to be fed with quality, real data, so that they offer us the best information and objective knowledge of what is happening in the company.

What does the future hold?

I can give you the shortest and most honest answer: we don't know, no one knows.
However, we are seeing how technological advances in Human Resources are moving towards greater automation of tasks and workflows in more routine tasks so that those responsible can take care of the most creative part of the work.
There is also greater flexibility and customisation of processes. Each employee and each company is different, and they need tools adapted to new needs.
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