Could AI Change HR As We Know It?

Read on for a look into how AI might be changing the HR field, and what you can do to leverage it.


James Rowland

Commercial Director James leads Account Management, Sales and Marketing at Neathouse Partners.


14 December 2022


17 July 2024
4 min read
Could AI Change HR As We Know It?

When most people think of AI, images of robot takeovers come to mind, but with so many day-to-day AI-enabled technologies like ‘Alexa’ and customer service chat-bots becoming ingrained into our lives, are we at the point where artificial intelligence can change the HR landscape as we know it too?


What Is AI?

Before we jump into the specifics of how AI is changing HR, it's important to understand what artificial intelligence is.

AI covers a wide range of technologies that allow machines to think for themselves and make decisions without human input or intervention. They can analyse large amounts of data quickly, allowing them to make decisions faster than ever before.


How AI Is Changing HR

AI has already had a huge impact on the way businesses operate, and its influence in HR will only continue to grow.

With its ability to quickly process large amounts of data and provide insights into employee behaviour, AI is already being used in HR functions to help streamline processes like recruitment and employee onboarding. For example,

  • AI can quickly scan CVs and narrow down candidates that best match job requirements based on keywords. This allows recruiters to quickly identify top recruits and shortlist them for interviews.
  • The same technology is also used for screening applicants and tracking the progress of their applications. AI-powered chatbots can answer basic queries from potential candidates to create virtual interviews. This allows recruiters to save time while getting a better idea of potential candidates.
  • Artificial Intelligence-enabled tools are a powerful resource for employee onboarding and training, enabling companies to create customised learning experiences according to each individual's needs.
  • AI can also be used to identify skill gaps and develop training programs tailored to individual employees. Machine Learning algorithms allow businesses to produce personalised coaching regimes that will lead not only to improved knowledge retention but also overall better outcomes.
  • By taking advantage of AI-driven algorithms, businesses can gain insight into their future workforce trends and make more informed decisions. With this data in hand, they can optimise operations and boost productivity with better accuracy than ever before.

To put all this into context, in 2019, Unilever announced impressive results; utilising AI helped the company save tremendous amounts of time and money: a whopping 100,000 hours spent on interviewing amounted to approximately £1 million in savings each year because allowing recruiters to focus on more complex tasks that need their attention.


The Future of AI in HR

AI is rapidly progressing, and as AI becomes more advanced, it will become better at understanding human behaviour and emotion, which makes it a valuable tool for predicting patterns, uncovering trends, and could allow for the automation of even more HR tasks.

  • AI technologies can be used for analysing recruitment data and creating tailored hiring strategies that match companies with qualified applicants much faster than traditional methods.
  • AI-driven analysis can enable real-time employment forecasts and a deep understanding of labour market trends that would be almost impossible to replicate manually.
  • AI could be used to predict employee turnover or provide employees with personalised feedback on their performance.
  • AI can provide employees with tailored recommendations for learning opportunities or job placements based on their individual career preferences.
  • AI technology promises efficiency gains and powerful insights into driving higher employee satisfaction across organisations.


How To Leverage AI In Your HR Processes

Improving HR processes with AI

If you are looking to leverage AI in your HR processes, it's important to understand how AI can be used effectively.

Start by identifying the areas of your business that could benefit from AI-driven technologies, such as recruitment or employee development.

Then, look for an AI solution that fits your needs and consider working with a vendor who specialises in AI for HR.

Finally, test the solution and make sure that it is delivering the results you expect, and get employee feedback at every stage.


Could AI Replace Humans In HR?

Whilst it can undoubtedly improve many HR processes, AI will never fully replace the need for human interaction in HR.

While AI can be used to automate certain processes, it still requires human input to function correctly and it lacks the empathy, morals, and emotions that are needed for managing people and processes fairly at work.

The key to using AI in HR successfully is to create efficient, process-driven systems that can save you time to deal with more complex matters.

Taking the time to understand how AI could be used in your business and implementing it correctly can help you stay ahead of the competition and remain competitive in the future.


Legal Implications Of Using AI in HR

When using AI technology in an HR environment, it's important to understand that there are legal implications of using it that must be taken into account when making these decisions.

  • Sound knowledge of GDPR and permissible uses of automated decision-making tools will help organisations protect their employees from potential harm caused by unjust default settings and biased decisions fuelled by AI biases.
  • Organisations must be wary when implementing automation as it is illegal to take significant decisions solely on an automated basis. Consequently, human oversight of all processes will be necessary for compliance.
  • Any third-party AI utilised for HR purposes must collect and process data ethically with transparent procedures. For example, if AI systems are used unconsciously to favour candidates from certain backgrounds or present gender biases during recruitment opportunities, those organisations could find themselves vulnerable to employment tribunals.
  • Companies who wish to utilise AI in their HR practices must remain on top of changing laws and regulations as this space continues to evolve and always prioritise data security requirements and fair practice.


HR Support When You Need It

Neathouse Partners provide solution-driven, outsourced HR, employment law & health & safety services to businesses.

We ensure that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practices and employment law, regardless of how complex the issue may seem.

Get a quote for the business support you need.


Next Steps

As you can see, by automating and streamlining HR processes, AI-enabled technology can help reduce costs, improve efficiency, and provide better insights into recruitment, employee development, and performance management in ways humans simply cannot do on their own.

As such, AI can serve as a valuable auxiliary support system to make the HR role in businesses more efficient and improve the employee experience, but employers looking into integrating such technology must also consider how it affects GDPR to ensure they don't fall foul of employment or data protection laws.

If you would like support with reviewing your current HR processes to see where efficiencies can be made, understanding the legal implications of introducing AI for specific processes or want to talk through the potential benefits of AI at your organisation, please  get in touch.

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