The Impact of Artificial Intelligence on HR Practices

The Impact of Artificial Intelligence on HR Practices

Recently, there has been much talk about the disruptive impact of Artificial intelligence in every sector, and HR is not an exception. 

According to UNext, human resources divisions are significantly impacted by AI, and this is evident in the light of typical HR processes that this technology has streamlined. There has been a rapid integration of artificial intelligence in HR practice since, compared to the preceding four years, 27% more businesses have implemented artificial intelligence in HR. 

Despite the growing popularity of Artificial intelligence on HR practices, many human resources managers are yet to understand the true extent of AI in terms of how it impacts their daily practices. Our goal in this article is to examine the impact of AI on HR and how professionals can leverage it to improve their processes. 

How AI is Impacting HR Practices

As with every technological innovation, AI is streamlining HR practices in multiple ways. By helping HR teams complete functions faster and more efficiently, HR managers can focus on more strategic tasks while leaving the functional part to AI. Here are some hr functions that AI is revolutionizing;

Recruitment and hiring

Recruitment is arguably the most critical yet time-consuming function of HR professionals. According to Ideal, 52% of hiring managers think the most challenging part of the hiring process is evaluating individuals from a vast application pool. AI helps hiring managers save time that would have been spent scanning thousands of applications. One common trend is using an AI-powered Applicant Tracking System (ATS) to browse hundreds of CVs and look for keywords or phrases that align with the job description. AI speeds up the hiring process by; 

  • publishing job descriptions on job portals
  • compiling applicants’ details
  • reviewing CVs and resumes
  • scheduling interviews, and
  • sending feedback to applicants’ emails after interviews. 

This way, AI would help hiring managers streamline the hiring process by shortlisting candidates whose skillsets and experiences are best suited for the roles while saving hiring teams time to focus on other essential aspects of their job. 


HR managers must make this process seamless because they drive employee satisfaction by helping them ease into the new position. Thankfully, the bulk of this task has been handled by AI, making the onboarding process seamless, efficient, organized, and personalized. From verifying documents and conducting induction programs to scheduling meetings for new employees and providing access to company hardware and software, AI completes the mundane administrative tasks involved in onboarding. 

Payroll Processing

Payroll processing is arguably the most important task of HR teams, given its direct impact on employees’ financial wellness and productivity. 72% of employees would experience financial difficulty if their paychecks were delayed by one week, and 58% noted that salary significantly contributes to career fulfilment. With AI automation, hiring teams can streamline payroll processing while eliminating the risks of delays and errors.  

Employee experience

After a successful hiring process and seamless onboarding, more work must be done to ensure a top-notch employee experience. This is particularly important given the direct link between employee experience and retention. Some ai tools that companies can take advantage of to facilitate employee engagement include

  • Chatbots; Chatbots improve the employee experience by providing quick and easy access to necessary information and support to facilitate a healthy workflow
  • Virtual assistant: employees can manage their schedules and workloads while staying organized by taking advantage of virtual assistant tools

Companies can also utilize AI for performance management purposes. For instance, employee rewards and recognition programs drive employee engagement. Therefore, R&R tools should be adopted to encourage employees to recognize and appreciate themselves through virtual platforms. 

Learning & development 

AI has revolutionized how we approach learning and talent development. AI can utilize data to outline employees’ strengths and weaknesses, providing insights for the human resources team to tailor learning and development plans to help employees reach their fullest potential.

Since the dictates of specific roles constantly evolve, companies need to be proactive in their learning and development efforts. With AI, companies can identify knowledge gaps in their talent and suggest appropriate educational content. 

Companies can also leverage automation to create e-learning platforms with self-paced learning, assessments, and feedback to ensure employees have a seamless learning process. 

Wrapping up!

If you started reading this article asking how will AI affect hr, we’re sure you have your answers now.

The human resources operations landscape is constantly evolving, and It’s still possible to jump on the AI train of automating your processes and creating a more productive and motivated workforce so as not to be left behind.  

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