AI in HR: How is artificial intelligence changing the workplace?

Artificial Intelligence (AI) has recently taken the world by storm and the world of employment is no different. So how is AI in HR transforming the HR landscape? It is reshaping everything from the way we work, to the way we hire.

But what is it and what does the adoption of AI mean for businesses and HR? We’re taking a look at how it’s changing the workplace and how it could benefit your business.

What is artificial intelligence?

Broadly speaking, AI enables computers to mimic human cognitive functions such as learning, problem solving and decision-making. AI can be used for almost anything from generating ideas to writing code and so much more.  

But if you think that AI is only something tech whizzes use then you might be surprised to find you are already using AI in your day-to-day life. AI voice assistants like Siri, Alexa and Google’s Gemini have been used on smartphones and computers for several years now. But their capability is continually growing and now goes beyond simply answering questions or telling jokes. Businesses are beginning to adopt AI into their models, utilising their power to streamline processes, increase efficiencies in workloads and so much more.

The importance of machine learning

When you think of AI, you should also think of machine learning. However, it’s easy to confuse the two. In simple terms, machine learning is a subset of AI that allows systems to learn and improve from experience without being explicitly programmed.

In the workplace, the impact of AI and machine learning is becoming increasingly evident. These technologies help businesses work more efficiently. Consider how AI algorithms are able to analyse CVs and cover letters to identify the most suitable candidates for a role. 

Employment Hero’s SmartMatch feature is a great example, helping employers hire smarter with AI-powered talent matching. Plus, AI-driven chatbots can conduct initial interviews, allowing HR teams to focus their time and energy on the most qualified candidates.

The benefits of AI in HR

It’s natural to wonder how AI can make a difference in a people-first space like HR. The good news? It’s already helping humans do their best work.

More and more companies are adopting AI because of how it continuously improves everything in the employee lifecycle, from candidate experience to employee attrition.

It does this by using deep learning based on employee performance data. The data is gathered from performance reviews, engagement surveys and productivity metrics and organised before it’s analysed to identify potential patterns and employee performance predictions.

But how can this benefit you in HR?

Increase efficiency and streamline recruitment

AI is a powerful tool that can be used to not only help shave valuable time off from mundane tasks, but help to make decisions with the hiring process, and review current and prospective employees. 

Hiring the right candidate out of a sea of interviewees can be time-consuming and admin-heavy. AI can revolutionise talent acquisition making it time efficient and effective. Take the tedious back and forth that is often involved in arranging interviews. AI eliminates this with automatic interview scheduling allowing you to focus on connecting with great candidates.

Plus CV screening minimises unconscious bias and saves valuable time as it means you can sift through vast amounts of applications in seconds, helping you identify the best matches for your role at speed.

Enhanced decision-making

When large amounts of data are analysed, patterns and trends appear and this is how you can gain valuable insights into your business. AI can not only identify these patterns, but it uses the data to predict various outcomes. 

It can also help you to spot signs early on that an employee is likely to leave or it can flag a potential turnover risk that you could be unaware of. It does this by looking at employee performance, job satisfaction surveys, attendance records and even market trends to deliver accurate insights on talent gaps that need to be filled.

Improve employee experience

At Employment Hero, we’re all about a positive employee experience and we know that AI can make going to work easier, more enjoyable and more engaging. We’ve seen AI offer personalised support, automate tedious tasks and perhaps most impressively, support career growth and help employees feel valued in their career path.

When utilised correctly, AI can create a more engaging, supportive and effective working environment which means higher levels of employee satisfaction. You can use AI to provide employees with 24/7 assistance in the form of chatbots (have you heard of Hero AI?) so they can access support around the clock, but by far the most rewarding aspect is that AI can suggest opportunities for growth.

We’re talking about personalised learning paths by assessing an employee’s skills and highlighting career advancement opportunities that align with their interests.

Will AI mean HR professionals risk losing their jobs?

We get it, the thought of AI coming in and replacing jobs is daunting, but that’s not the reality. People have the advantage of being able to examine something in a non-binary way, the ability to look into the grey area.  

Take performance reviews for example. AI would be able to tell you exactly how that person has performed over the course of a month. The advantage, of course, is being able to take away a bias that a manager may unconsciously have towards the team member.

However, AI won’t be able to tell you why someone has performed well or poorly. It can’t tell you that someone has lost a loved one and their mental health is not doing well as a result, which has impacted their work.

AI should be used as a productivity tool, with its purpose to drive deeper work, simplify complex tasks and reduce manual ones. This is exactly why we need to work hand in hand with AI and not fear it because of those pesky what-ifs.

How to implement AI successfully within your HR function

Implementing AI successfully is all about embracing innovation while keeping your focus on people. After all, AI should enhance the human element of HR, creating a working environment where people and technology work hand in hand.

So how do you implement it?

• Identify opportunities: Where can AI make the biggest impact for you? Is it recruitment, employee engagement or performance management? Having clear goals will pave the way to success.
• Choose the right AI tools/systems: Not every AI system will be the right fit for your company. Opt for user-friendly software that aligns with your company goals whether that’s chatbot support, candidate screening or performance tracking (like Employment Hero).
• Fully integrated AI: It’s often beneficial for your AI to sit within your tools rather than in addition to. This creates a more seamless user experience, reduces context switching and allows your team to get value from AI directly within their existing workflows.
• Test solutions: Next comes your detailed test plan. This plan will be your roadmap so establish a timeline for testing activities and have your plan approved before you execute it.
• Gather feedback: Check in with your HR team, learn how the AI tools are performing and note what works and what doesn’t.
• Train your HR team and employees for adoption: For AI to have maximum impact, your team has to know how to use it. Training is the key to making AI work for you.
• Monitor performance: Monitor the performance of your AI system in real-world scenarios to see if it meets performance standards.
• Continual optimisation of workplace AI usage: Monitor and assess the performance of your AI systems, continually gathering feedback and making adjustments along the way.

What does the future workplace look like?

We’ve already covered a lot about AI and its applications but does AI have the potential to influence the future of the workplace and bring with it a brighter future?

Absolutely. But what does this look like? AI has the power to create a more data-driven, personalised and efficient workplace. We could see seamless onboarding tailored to each employee, automated admin tasks like we’ve never seen before and even personalised wellness initiatives. Business owners and HR professionals can create a more empowering and seamless employee experience and foster an environment that’s continuously improving.

The future of AI is here with the world’s first Employment Operating System

Say hello to the future of work with Employment Hero’s Employment Operating System.. We’ve brought together every part of the employment journey, from recruitment, onboarding, payroll, engagement and growth into one seamless, AI-powered experience.

With smart features like Hero AI and SmartMatch, you can find and hire top talent faster, automate complex payroll tasks and empower your people to do their best work. It’s everything you need to manage, support and grow your team, smarter and more efficiently than ever before.

Ready to see how it can transform your business? Get in touch with one of our business specialists today and unlock the future of work with Employment Hero.