Nominate your best employee now before the window closes!
Find out more details on our website
HRM and Payroll Software
AI has been one of the hottest topics in 2023, with AI tools such as ChatGPT growing in popularity and attracting over ......
Over the past years, technology has been a force driving growth and transformative shifts across different industries. Human resource (HR) is one the areas that has embraced and implemented artificial intelligence (AI) tools and techniques enhancing efficiency, precision, and agility in different HR functions. 65% of HR leaders recognize AI as a catalyst for enhanced efficiency and productivity. Additionally, 88% of companies globally use some form of AI solutions in HR.
Much has happened in 2023 across the HR industry; the adoption of AI technologies is one area you can hardly ignore. AI has been one of the hottest topics in 2023, with AI tools such as ChatGPT growing in popularity and attracting over 180.5 million active users. As we welcome a new year, let’s reflect on how AI has reshaped/revolutionized HR practices in the past year.
AI is revolutionizing and streamlining the hiring and recruitment processes, enhancing efficiency and accuracy. Statistics show that 35% to 45% of companies are utilizing AI recruitment tools, 65% of recruiters use AI in their hiring processes, and 99% of Fortune 500 companies already integrate AI techniques in hiring. Companies using AI tools for recruitment successfully include Domino’s Pizza, I.K. Hofmann, Stanford Health Care, Kuehne+Nagel, Microsoft, Amazon, Unilever, etc.
Here are different ways AI is streamlining recruitment and hiring functions:
Onboarding is another HR area that has seen a significant impact from artificial intelligence. For a long time, employee onboarding has been a lengthy and tedious process for some HR professionals and new employees. However, AI-powered onboarding is driving many changes from personalization, efficiency, and compliance assurance to better engagement. Consequently, employees with a great onboarding process are more likely to stay long-term with that particular organization.
Among ways AI is used in the onboarding process include:
Another area in which HR departments are leveraging AI is employee performance management. One of AI’s significant advantages is its ability to collect, track, and process massive amounts of data at high speed, making it quite valuable for performance management. It’s a powerful tool to help organizations enhance the effectiveness of their performance management process. AI's pivotal role in performance management is depicted in the following ways:
Employee engagement matters in today’s competitive business world; thus, it has become a top priority for forward-thinking organizations. Integration of AI tools is revolutionizing employee engagement and even overall organizational culture. Panasonic North America is one company that has seen success in employee engagement by adopting AI solutions.
Below are ways HR professionals are using AI to improve employee engagement and retention:
AI’s impact has also been seen in learning and development programs and processes in organizations. Organizations that embrace AI can easily equip their employees with the relevant skills, effective learning experiences, and more engaging earning processes. More importantly, AI helps businesses build a continuous learning culture, ultimately boosting productivity, employee retention, and company culture.
Here are ways companies are leveraging AI in learning and development:
The global AI HR market is estimated to be USD 5.26 billion in 2023, and it’s expected to reach USD 10.70 billion by 2028 at a CAGR of 15.26%. It shows that HR departments will increasingly adopt AI solutions to improve their HR functions, from automating routine tasks and streamlining processes to generating data-driven insights for more objective decision-making. However, implementing AI solutions requires addressing ethical considerations, privacy concerns, impacts on the workforce, and accountability. More importantly, it requires HR departments to have the right infrastructure and skillset to leverage the full potential of AI tools in the future.
In brief, AI will continue largely transforming the HR industry, and organizations embracing it will have a great edge in the labor market. Among the benefits of AI in HR management include improved efficiency, reduced cost, better decision making, enhanced employee experience, and reduced biasness in management. However, AI has disadvantages, including minimal human connection, potential data breaches, and the high cost of acquiring, implementing, and maintaining AI technology.
Subscribe to get the latest articles, information, and advice to help you better run your small business. Delivered weekly, for free.