How Artificial Intelligence is Shaping the Future of HR in 2022

June 27, 2022・7 mins read
How Artificial Intelligence is Shaping the Future of HR in 2022
AI is no longer a futuristic concept as it has already started to play a significant role in the workforce. We are already starting to see how it can streamline the recruitment process, gather data, and take care of employee training. HR and AI are not new concepts, they have been in existence for many years now. However, with the advancements in technology and data availability, it has become easier to implement these things in a business setting. In fact, it’s been reported that 92% of HR leaders plan on using AI to acquire talent. So what does that mean for you? It means that in order to attract quality talent, you are going to have to give them a streamlined experience in order to remain competitive. We are going to cover some examples of how you can leverage the power of AI in your organization. But first, it’s important to understand what AI is in the human resources space.

What is AI for human resources departments?

Artificial intelligence in the HR world can mean a lot of things. From predictive analytics to help decision-makers evaluate data and make better decisions, to interactive tools for onboarding, people data, and more, AI is going to change the game for HR as we know it. It’s able to process large amounts of data and make sense of it within seconds. Because AI is paired with machine learning, it presents information without any bias as well. That makes it a useful tool for decision-makers when it comes to hiring processes and changes. Here are a few ways AI is transforming the HR industry as a whole. We'll also look at changes we can expect to see in the future.

AI helps with better tracking for HR compliance

HR compliance is the process of making sure that company’s HR policies are always up-to-date with the latest government regulations. In the past year there has been plenty for HR professionals to keep up on. In 2022, Equal Pay Day was recognized nationally, spearheaded by the Biden Administration. Additionally, California has been pushing for more diversity on their corporations' boards. With ever-changing laws and regulations, HR professionals have started using AI-powered tools. These help them prove that they are maintaining compliance through extensive reporting. Automation helps businesses to reduce costs and save time.

More in-depth reporting for people analytics

Diversity is becoming increasingly more vital to companies in the U.S. In fact, racially diverse companies are said to perform 35% better and capture 70% more of new markets. Finding ways to eliminate any biases in the recruitment process is an essential way to keep your organization’s reputation the best it can be. It is also a leading factor for retention. ADP did a study just this year and revealed that 76% of employees would consider leaving their job if the company demonstrated unfair hiring policies. Luckily, there are tools that specifically track DEI people data. Many companies are jumping on the bandwagon with this capability to show potential hires and current employees that this is a priority to them. Here are a few examples of metrics that these kinds of tools can track:

Diverse candidate pool

AI recruiting is an emerging trend in the HR industry. Sourcing a diverse pool of candidates is the first step in making sure your DEI goals are being met. AI can help with this by analyzing who you’ve contacted for an interview. It can also pinpoint any potential red flags to decision-makers.

Vetting resumes quickly

Recruiters can use AI to analyze resumes and cover letters and identify suitable candidates for a given job based on their skills and qualifications. This eliminates the need for recruiters and HR professionals to spend hours searching through hundreds of resumes.

Tracking the candidate funnel

AI can also track your entire recruiting process. It can help you see if there’s a trend of where candidates tend to fall out of the funnel. This can help decision-makers pinpoint whether any shifts or adjustments need to be made in their processes in order to stay aligned with their diversity goals.

Ensuring fair and deserved promotions

AI can also assist with gathering data for who is getting promotions. It can show you who is being considered for leadership positions. This is another critical compliance piece as it shows how often diverse hires are given opportunities.

Evaluating performance

Regarding performance, AI can track large groups of employees and determine how well hires are doing their tasks, at what pace, and monitor consistency. This way everyone is being evaluated fairly.

Feedback on satisfaction and retention

Checking in with your current employees is critical. AI-powered surveys or chatbots can help organizations track metrics of retention and answer questions that lead to the reason talent is walking out the door. AI can also be used to predict when an employee might leave the company or become disengaged at work. This could help managers take preventative measures before it's too late.

How AI assists HR with automated onboarding tasks

Long gone are the days of spending a new hire's first couple of days onboarding with endless paperwork. From ensuring an employee is who they say they are, to background checks, offer letters, benefits packages and more, there’s a lot HR professionals and admins are tasked with in order to seamlessly hire someone.
AI makes it possible to automate all of these onboarding tasks.
AI makes it possible to automate all of these onboarding tasks — making a day's worth of work possible in 10 minutes. This way, new hires can actually get started working on their 1st day, completing all of their necessary paperwork beforehand.

How AI helps human resources professionals with training

From new hire training to additional needed training for existing employees, safety training, and more, there are no limits to how AI can assist organizations with development and training needs. Interactive AI training can create an engaging experience for all levels of training and improve learning efficiencies. AI can actually act as a teacher or instructor in many cases. It can serve to process how a user is intaking information so employees can see how they are progressing through the training.

AI helps human resources to stay ahead of the game

At the end of the day data is valuable, especially when it’s orchestrated to set you up for long-term success. From an increase in productivity, better and faster training capabilities, DEI metrics, seamless onboarding, and more, the future is bright for AI within HR. With all of these AI options available, it’s important that HR professionals are in the know about all the different AI capabilities out there. It's important to see what could work best for their organization. Reading blogs and following HR influencers are great ways to see new HR AI developments. It's also a great way to educate yourself on what could work for your company. Not sure where to start regarding AI within HR? Start with your onboarding — it’s the 1st impression your new hire will have of your company beyond the interview, so it’s important you make a quality, seamless impression.
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