The pace of adoption of new technologies in the world of Human Resources (HR) is moving at an astounding speed. Automation and artificial intelligence (AI) within human resource software have taken over admin work and tedious tasks.
Besides these applications, advances in machine learning, chatbots, computer vision, and other emerging AI solutions are increasingly replacing human decisions at scale.
What are the implications of integrating technology into the core functions of HR, and how will these changes reshape roles and operations?
1) How Is AI Changing HR?
Emerging technologies have had a transformative impact on all aspects of businesses, including the human resource department. Companies aim to provide faster services, improve quality, and increase savings.
It’s changed the HR function and how it operates.
Today, we use AI to support a culture of collecting and analyzing data to make better-informed decisions and use these insights for continuous development.
The focal point of HR has shifted from admin tasks to utilizing analytics to create a more productive workforce and develop future leaders.
a. Automation
The most straightforward answer to how AI is changing Human Resources Management Systems (HRMS) is the automation of standardized processes. According to Deloitte, as much as 57% of HR’s time is spent on administrative tasks, instead of strategic planning.
Automation enables HR professionals to have more meaningful interactions, reduce errors, and ease the administrative workload. The latest AI-powered tools are designed to streamline workflow processes, seamlessly integrate them, and support all areas in HR’s scope.
b. Reducing Bias
Another growing application of AI is the promise to reduce unconscious bias by disregarding information such as applicants’ age, race, and gender. This cognitive selection bias can seep into many areas like recruitment, decision-making, or performance evaluations.
When organizations make data-driven decisions, they send a message of integrity. However, as these algorithms learn by following previous patterns of behavior by recruiters, they should not be left unchecked. AI offers a way to keep decision-making objective by giving candidate recommendations based on performance and knowledge.
c. Retention
Employers can gain deep insights into their workforce and introduce various data-driven HR initiatives to improve retention by using cutting-edge technology.
AI solutions can be applied in every phase of the entire employee lifecycle. From personalized learning and development programs, using wearables to monitor wellness, to gamifying work to check employee engagement.
d. Talent Acquisition
Time is of the essence when recruiting and hiring new employees. Recruiters can optimize talent acquisition by using AI to eliminate time-consuming and repetitive tasks. For example, implementing applicant tracking systems saves valuable time and helps hire more efficiently, plus finds and screens candidates faster and with more fairness.
2) Data Security in HRMS
Any major operational change will bring forth some disruption and inevitable risks, and the digital transformation in HR is no different.
With the move to the cloud and centralization of employee data storage within AI-powered HRMS solutions, companies must ensure the confidentiality and integrity of their data.
Storing sensitive employee information online like banking details, Social Security numbers, and addresses heightens a company’s risk related to data breaches and cybercrime, and possibly substantial losses. Statistics show the cost of a data breach to an American company averaged $9.36 million in 2024.
However, many businesses are using security AI and automation to detect and respond to these attacks, whether through encryption, anomaly detection, or multi-factor authentications. In fact, the average cost savings for organizations that used AI to protect their data versus those that didn’t is around $2.2 million.
3) Integrating AI with HRMS
The modern workforce requires data science to address some of the most urgent challenges and provide innovative solutions to companies. After merging AI with HRMS systems, employers can experience an all-encompassing system that assists them in various internal HR functions.
Candidate engagement, training, onboarding, recruitment, talent management, and ERM (Employee Relationship Management) are all optimized after implementing AI in the HRMS work system.
a. Speedy Application Screening
Recruiters can now engage candidates before or after applying for a position in an organization. With the help of AI and chatbots, companies can test candidates, answer common questions about the role, address specific concerns, and get feedback and information about the candidate. Natural language processing is accelerating and becoming more sophisticated, providing candidates with a personalized, human-like experience.
b. Candidate Engagement Process
As a large part of the recruitment process is automated, the focus of HR teams shifts from operational tasks to improving the candidate experience, creating engagement, and attracting candidates to apply.
Artificial intelligence streamlines the candidate engagement process beyond the standard automated emails and messaging workflows. This engagement can be real-time and personalized to the individual candidate with AI.
In addition, AI can help give candidates a quick insight into a company’s work culture and values.
c. Re-engagement of Candidates
AI allows you to re-engage a group of candidates from your database and gauge their interest in a new position or role. Most AI platforms allow recruiters to nurture candidate relationships. This means that candidate records can be stored in a database for future use—this way, the candidate does not need to resubmit their application when applying for several positions.
d. Fast Onboarding
The first day of a job and new-hire orientation can be overwhelming for many new employees. Incorporating artificial intelligence into the onboarding process can help employees learn about company policies, procedures, and benefits coverage, while verifying employment documentation.
e. Effective Workforce Development
Adopting AI solutions in the HRMS system can significantly improve the employee experience by identifying which employees need training or new skill sets. AI offers employees a personalized approach to their career development program or even coaching guided by coach bots for every individual.
It’s not surprising then that 96% of large and mid-size companies and 81% of small companies already use a learning management system.
VR and AR technology will also play a valuable role in the learning and development of workers, especially in high-risk roles, where skills can be developed in safer environments.
f. Improved ERM
An ERM module in HRMS systems provides an intelligent solution to track employees, their work relations, and all reporting and compliance processes. HR teams can structure the workforce into organizational units, define the reporting relations between managers and employees, and align payroll.
4) The Future of HRMS
HRMS tools must consistently upgrade and integrate AI to create better workplaces to match this rapidly changing world. The transformation AI can bring to organizations is seen across various processes, and AI’s role in the workplace will only keep increasing.
The pandemic showed that AI-driven HRMS can quickly adapt to flexible and hybrid work environments, with innovative tools being used for collaboration or intelligent scheduling.
Today, many organizations have adopted cloud-based and mobile-compatible HR management systems, so employees can easily help themselves with self-service anywhere and on any device.
Even beyond that, AI-powered tools are transforming physical environments with desk and meeting room booking systems in an effort to improve the employee experience.
Office layouts, occupancy sensors, and optimizing the temperature and air quality are just some of the real-life applications to better utilize the workplace and make it more comfortable.
5) Conclusion
Apart from simplifying HR’s role, AI helps steer the direction of business strategies, enforces more informed decision-making, and helps overcome significant disruptive challenges. Businesses that see the value of introducing AI to their systems in a highly competitive market will win the war for talent, improve efficiency, and gain a significant advantage.
Sources
Modernizing HR: Design Thinking and New Technologies to Help Enhance Employee Experience (Deloitte)
Average cost of a data breach in the United States from 2006 to 2024 (Statista)
Cost of a Data Breach Report 2024 (IBM)
2023 Training Industry Report (Training Magazine)
Alex Tray is a system administrator and cybersecurity consultant with 10 years of experience. He is currently self-employed as a cybersecurity consultant and as a freelance writer.
