As artificial intelligence capabilities continue to expand and grow, there are several key benefits of using AI in HR. AI can help with data-driven decisions, reduce headcount and hiring costs, and improve employee experience.
However, while 80% of decision-makers think AI adoption is necessary to keep their companies competitive, 77% believe mitigating risks could increase its uptake.
This article discusses AI's role, impact, risks, and benefits in HR and offers some best practices for applying AI to different aspects of the function.
Contents
AI in HR: Role and impact
AI's use in HR
9 key benefits of AI in HR
The challenges of AI in HR
Applying AI to HR: Best practices
The future of AI in HR
AI first appeared in HR in the late 1990s and early 2000s, with simple automation tools like résumé screening via ATS (applicant tracking systems), matching keywords to job descriptions, and handling high volumes of applicants more efficiently.
Basic AI chatbots soon followed, managing candidate queries and scheduling interviews without human input. Then came predictive analytics, which used past data to forecast outcomes (e.g., how likely a candidate is to succeed in a role). As AI advanced, it moved from handling simple tasks to supporting strategic decisions like workforce planning.
Today, HR leans more on data and machine learning to automate, improve, and streamline processes, such as predicting employee turnover, identifying high-risk teams, or analyzing survey results.
AI is now used across HR -- in hiring, onboarding and offboarding, workforce planning, chatbots and virtual assistants, learning and development (L&D), analytics, talent management, AI coaching, and HR business partnering. However, it's important to remember that AI should be treated as a copilot, not a replacement. Most HR tasks still require human judgment and empathy.
Here are some examples of the use of AI in HR, along with relevant AI tools for Human Resources that can help you integrate AI technology into your organization.
AI helps HR teams create job descriptions, personalized candidate emails, and draft policies. It also supports training material development and simulations, and you can use it to generate welcome videos for new hires and run employer branding campaigns on social media.
Examples: Canva, ChatGPT, DALL-E, Jasper AI, Pictory, Synthesia
AI makes it easy to analyze performance, salaries, and more. It creates clear dashboards and highlights patterns in large datasets, helping you spot trends like low team performance. Additionally, you can use machine learning to predict future HR needs.
Examples: Google Looker Studio, IBM Watson Analytics, MonkeyLearn
You can use AI to scan and summarize large documents like legal texts or company policies, helping employees find key information as quickly as possible. It can also extract relevant insights tailored to business goals, which supports better HR decision-making.
Examples: SummarizeBot, Tableau, and Einstein Analytics
A significant use of AI in HR is automating administrative tasks like interviews, onboarding, payroll, and reviews. You can also use it to send documents for e-signing, answer employee questions via chatbots, and personalize routine messages based on staff data.
Examples: AI for Google Calendar, Calendly, Grammarly, Mail Merge for Google Sheets
AI can flag urgent tasks, manage shifting deadlines, sync calendars, assign tasks, and send reminders. It can also schedule meetings, take notes, summarize discussions, draft documents, aid in research, and recommend tasks based on past performance.
Let's explore some of AI's benefits in HR, using real-life examples of AI tools and companies that use them.
AI enables HR teams to outsource low-value, time-consuming admin tasks, such as screening résumés, scheduling meetings, conducting payroll, and ensuring compliance. This increases efficiency, frees you up for more strategic, value-adding work, reduces the risk of human error, and improves overall accuracy.
AI can improve candidate matching, which increases quality of hire. For instance, you can use ChatGPT to generate interview questions based on role requirements and summarize résumés to speed up screening. You can also use AI-powered tools like skills tests and pre-employment assessments to dive deeper into candidates' capabilities.
AI-powered chatbots can address employee queries and serve as virtual onboarding assistants for new hires. At the same time, generative AI in HR (GenAI) can analyze skills, performance data, and career goals to provide tailored L&D suggestions. Additionally, AI-based coaching tools can mimic in-person coaching and offer real-time feedback.
AI tools can help draft clear, engaging company newsletters on new initiatives, policy updates, and reward programs, while GenAI can customize employee communications to make your messages inclusive and effective. These tools can also help you brainstorm how to improve the employee experience (e.g., by boosting engagement).
AI allows you to use data to make evidence-based decisions by measuring KPIs like task completion rates and peer feedback. This will enable you to plan for the future by personalizing career development plans, identifying future leaders, and reskilling and upskilling your organization's workforce.
58% of HR leaders struggle to meet talent needs, and 40% of businesses cannot fill critical roles. AI-powered forecasting can predict workforce trends and proactively align their strategy. Additionally, you can use GenAI to analyze large datasets from different sources for key insights (e.g., potential flight risks and future skills gaps).
As AI takes on manual, repetitive admin tasks, you can focus on more strategic tasks and increase HR productivity where it matters. For instance, you can make your recruitment process more efficient by using AI tools to assess applicant responses and quickly draft job descriptions, offer letters, and policy updates.
AI in HR supports DEIB by spotting bias in hiring, promotions, and pay through data analysis, helping HR teams take action to fix these gaps. At the same time, AI tools like chatbots can boost inclusion by giving real-time support to employees with disabilities, ensuring equal access to relevant information and help.
Tools like predictive compliance analytics use AI to analyze historical data and predict compliance trends, while compliance automation software streamlines compliance tasks. GenAI can also help you draft, create, and update policy documents and contracts in line with company policy and compliance regulations.
While there are many benefits of using AI in HR, there are risks and challenges to be aware of. These include:
Here are some best practices for applying AI in HR:
Begin by testing AI in one HR area -- like recruitment or onboarding -- before rolling it out company-wide. Try a few different tools, see what works, and measure the impact. Starting small lets you learn what fits your processes, fix issues early, and build internal support before expanding into other areas like learning, performance, or workforce planning.
Select AI tools that work well with the systems already in use, such as your ATS (applicant tracking system), HRIS (HR Information System), or LMS (learning management system). This avoids duplicate work and drives smoother workflows. Integration also means less time spent on manual data transfers and more reliable insights from connected systems.
Your company should adopt AI because it solves real business needs, not just to follow trends. Whether it's reducing hiring time, improving employee retention, or automating admin tasks, start with a clear goal. This will help you choose the right tool, prove its value, and get the buy-in you need from relevant stakeholders.
Bringing in your organization's IT and data teams early helps you set up your AI tools correctly and securely. These teams can help ensure system compatibility, data integration, and regulatory compliance. If you don't have in-house expertise, consider engaging a reputable external partner to help guide the process.
Ensure employees understand how AI will be used, what data it will collect, and how to make decisions. This builds trust and helps prevent resistance. Clear communication is especially important in areas like performance reviews or internal mobility, where AI recommendations will affect people directly.
AI should support HR, not replace it. Be sure to involve the relevant staff when reviewing AI-driven outputs, especially when it comes to decisions about your organization's workforce. Thorough checks conducted by humans are essential for catching mistakes, preventing bias, and ensuring final decisions are fair and accurate.
Monitor your tools' performance and check for any signs of bias in results. Regular audits help you catch problems early, whether a hiring algorithm unfairly filters out specific candidates or inaccurately predicts employee turnover. Assess your tools' data, decision-making processes, and whether outcomes are fair and reliable.
Invest in training staff not just on how to operate the new software, but also how to interpret and act on the results. They should understand what the data tells them, what limitations AI might have, and when to step in with human judgment. The better trained your team is, the more value you'll get from your AI investment.
GenAI will be used more to personalize employee communication and create content. AI tools will also help track real-time performance, provide instant feedback, and act as copilots to support strategic decisions. The HR team can also expect AI to combine with wearables to boost workplace safety and employee wellness.
More focus will likely be on explainable AI and fairness checks to build trust in how these tools work. Additionally, new, clearer regulations around AI in hiring and employment are expected, helping leaders understand what is and isn't allowed. As AI takes over more admin work, HR's role will shift to a more strategic one, focused on impact instead of paperwork.
The benefits of integrating AI tools and software in HR are clear. As technology rapidly evolves and transforms the world of work, businesses that fail to adopt AI will be left behind. However, it's important to be mindful of the challenges AI brings and the potential concerns of using widely unregulated and previously untested technology.
If you're ready to apply AI to your organization's HR functions, start small and focus on solving real business concerns. Be sure to test your chosen AI tools thoroughly before company-wide implementation, and regularly monitor them so you can minimize bias and make prompt changes wherever needed.
