5 Ways HR Can Use AI

Last updated: 2024-05-218 min read time
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According to a 2024 report, 50% of CEOs report that they’ve already begun integrating AI into their company's day-to-day practices. As AI tools become more accessible and powerful, HR team leaders must learn how to harness AI and data to help their organizations stay ahead in a competitive market.

The Transformative Potential of AI

Companies that embrace AI automation will see the results throughout their organization. For instance, a study found that "highly automated companies are six times more likely to achieve revenue growth" compared to companies with low automation."

Roy Norman, Senior Key Account Manager at Benify, emphasises AI's transformative impact on HR, stating, "AI is a very exciting element to the world of HR, revolutionising HR through improved data analysis and efficiency."

The possibilities of AI present new opportunities — and challenges — that HR teams can address through strategic initiatives.

The Basics of AI: What HR Teams Need to Know

Developments in AI have skyrocketed in recent years, and with this rapid release of new tools and functionalities, it can be hard to keep up.

AI can be divided into two categories: traditional AI and generative AI. Traditional AI (seen in search algorithms and voice assistants like Siri) uses limited datasets to execute specific actions, whereas generative AI (such as ChatGPT) uses expansive datasets to generate content.

Both types of AI require data, highlighting the importance of data-driven HR. Data-driven HR refers to the process of using meaningful data (such as employee feedback, benefit enrollment, and engagement levels).


5 Ways HR Teams Can Use AI

A study among employers who have utilized AI processes within their HR teams found that 67% of them reported cost and resource savings. By combining data-driven HR with an AI approach, HR teams can reduce costs, establish a strong company culture, improve recruitment processes, and utilise the power of chatbots, and make informed strategic decisions.

  1. How Can AI Reduce Costs?

93% of HR managers who use AI tools believe it helps save costs. By automating routine administrative tasks that traditionally require substantial effort and financial resources (such as employee onboarding and benefits management), AI tools can reduce unnecessary expenses.

When AI is used in combination with data, HR departments can streamline processes that typically require extensive effort, such as data management, employee scheduling, and benefits administration. This shift towards automation reduces the need for manual labor and the potential for human error — leading to further cost savings.

Also, through AI and data, HR teams can make budget adjustments that account for how resources can be used most effectively. AI-driven analytics identify patterns and predict trends, helping HR managers make informed decisions to prevent costly problems like overstaffing and underutilisation.

  1. How to Use AI for Talent Recruitment?

Did you know that 43% of HR leaders are already using AI in their hiring processes? AI can be a key tool in helping HR teams streamline recruitment processes and make data-driven hiring decisions. For instance, custom AI algorithms can analyse candidate data to find the best person for a role.

As Jonathan Best, International Business Development Director at Benify, highlights: "AI is increasingly prevalent in screening of candidates. So, based on that screening process, you can use AI to predict whether they're going to be a successful employee or not.

AI can also act as a personal HR assistant throughout the interview process, from scheduling meetings to generating pertinent questions. This helps HR teams quickly find the right candidates while ensuring a strategic approach.

  1. How to Integrate AI Chatbots?

HR teams are beginning to adopt AI-powered chatbots that can instantly respond to employee inquiries, reducing wait times and ensuring employees have access to the information they need. A chatbot's 24/7 availability provides employees with convenient, flexible, continuous support.

Recent studies have found that the HR chatbot market is expected to increase substantially over the next ten years. As this technology continues to grow, some of the more advanced AI chatbots can tailor interactions to individual preferences, enhancing employee satisfaction and engagement.

These chatbots also analyse interactions to collect insights into employee concerns, enabling HR teams to proactively improve their company performance and address issues effectively. By automating routine tasks and offering consistent responses that adhere to company policies, AI chatbots help HR teams focus on more strategic tasks.

  1. How Can AI Help Create HR Strategies?

As AI tools begin automating manual admin tasks, HR leaders can now focus more on key initiatives. As Forbes Tech Council notes, this is leading to a reevaluation of traditional HR practices, with a growing number of employees viewing AI tools as colleagues rather than threats.

AI tools can play a critical role in strategic HR management by providing deep insights into employee experiences. When AI is applied alongside other tools, HR teams can tailor their strategies to better meet people's needs: ultimately boosting overall organizational performance and retention.

"Using a combination of employee surveys and AI helps you to tailor your strategies. Are people feeling happy? Are they feeling sad? That sentiment analysis is super important and growing all the time in our space," notes Jonathan Best.


  1. How Can AI Strengthen Your Company Culture?

A recent study by MIT Sloan Management Review and Boston Consulting Group revealed that 79% of companies who used AI to improve efficiency and decision-making also saw positive changes in their company culture.

AI can be a key factor in strengthening and developing your company culture in several ways. For instance, AI can provide personalised support throughout the employee lifecycle, helping people feel valued and supported.

Using AI to enhance security can also improve your company culture by fostering a sense of safety and trust within the team. However, it's crucial to use AI ethically and transparently to maintain this trust. 46% of employees worried about AI affecting their job roles are considering changing jobs, which will likely lead to increasing turnover rates within organisations.

These concerns are mostly caused by employees' indicating that their companies lack an understandable AI policy. Implementing clear guidelines and providing training on how to responsibly use AI will help ensure that it's used in a way that aligns with the company's values and enhances its culture.

The AI Advantage

AI and data are reshaping HR, offering new ways to improve efficiency, strategic decision-making, and employee engagement in today's competitive talent landscape. As AI technology continues to evolve, understanding how to harness this technology is more important than ever.

To learn more about utilising a data-driven approach, download our guide "Data-Driven HR: The Secret to Effective Benefit Programs" to discover practical insights, best practices, and real-world examples designed to help you harness your organization's data and unlock the full potential of your workforce.