Today, AI-driven automation is poised to disrupt every industry. The HR technology landscape is no exception. In fact, thanks to the volume of structured data available and its direct correlation to employee performance, operational efficiency, and company success, the HR software space will be one of the first to feel the impact of artificial intelligence. In this article, we discuss how artificial intelligence is transforming HR services today and in the future. Here we have outlined why now is a critical time for HR technology companies that can effectively blend AI-driven insights with human empathy by implementing automation as an intermediate step in their customer journey which will become increasingly important in the years beyond 2022.
What is Artificial Intelligence?
AI is one of the fastest-growing tech sectors, with annual growth rates upwards of 14% over the past three years. AI’s growth is driven largely by the emergence of new technologies like machine learning, natural language processing and the growing availability of data. Though AI has been around since the 1950s, it wasn’t until recently that the technology reached a level of sophistication that enabled it to be applied to a wider range of use cases.
The Future of AI in HR Services
One of the biggest challenges HR departments face is the volume of data they are expected to process on a daily basis. The hiring process alone generates thousands of documents that need to be stored, tracked and easily accessible. This data needs to be linked with other core HR functionality processes like performance review, onboarding and compensation management. All this data needs to be processed by teams of people who are already stretched thin by the sheer volume of their workload. The good news is that artificial intelligence can help here. AI can help HR professionals to analyze large amounts of data, extract meaning and provide insights more efficiently. Many HR software vendors are now using AI to help automate processes like onboarding and time-off request approval.
HR Technology & AI in 2022
Although the use of AI in HR has increased over the past few years, we expect this trend to accelerate dramatically in 2022. We also anticipate increases in the use of other emerging technologies like machine learning, natural language processing and blockchain. In 2022 & beyond, AI will be used for more than just analyzing data. It will be used to train employees on new policies, implement learning management systems and even conduct performance reviews. We expect to see the introduction of hybrid-HR software that can tap into an organization’s transactional data and offer insights based on AI. This data may include employee performance reviews, compensation data, and attendance records. This allows the software to build a profile of each employee and recommend best practices that meet each person’s unique needs.
Chatbots in HR Support
One of the biggest trends in customer service right now is the use of chatbots. Many companies have created virtual agents that can process basic inquiries and route them to the appropriate team. In HR, the use of bots has been limited by the fact that many HR executives want to speak with a human representative when they have a concern. However, with AI entering the HR space, we expect to see chatbots become more prevalent. Furthermore, companies rolling out HR software that uses AI as a core function may choose to integrate a chatbot directly into the software as a way to interact with users. This can help lower-touch customers get the information they need and prompt high-touch customers to use the chatbot for basic inquiries.
Machine Learning in HR Support
Machine Learning is a subset of AI that focuses on training computer models to make predictions based on existing data. Many HR software companies use ML to automate the interpretation of data that HR professionals need to process, like employee health records and compensation data. ML can also be used to create new insights by taking a data set and looking at the relationships between the different data points. For example, if your company uses HR software that links an employee’s address and bank account with the payroll system, the software can automatically and instantly determine if an employee receives the right payment as per the attendance. For HR professionals, this is a time-consuming task that must be done manually.
Artificial intelligence has the potential to dramatically change the HR industry. No doubt that the future of artificial intelligence in HR services will be centered around chatbots and machine learning, with a focus on employee engagement. Automation AI is currently used to automate simple tasks and make them more efficient, but with further development, AI may be able to take over more complex tasks, like making hiring decisions and conducting performance reviews. Given the current state of AI, HR technology companies must be careful to not overpromise on the capabilities of AI and robot advisors. Instead, they should focus on how the technology can automate daily tasks and help their clients make better and faster decisions. At the same time, HR tech providers must be careful not to undersell the capabilities of AI. The technology has the potential to make complex decisions and better serve a company’s employees as well as business, and companies must be sure to communicate this effectively to their clients.