For our latest HCM Minute, please see below.
Expanding Artificial Intelligence Applications to HR
Just like finance spreadsheets were a major breakthrough for finance departments, Artificial Intelligence (AI) is expected to change how HR will operate in the future. Several companies already leverage AI to screen resumes, but recent AI technological developments, such as voice and image recognition, are expected to expand capabilities and create $100 billion of value in HR in the next 20 years.
Sample AI Applications for HR
- Arena, a startup providing AI-based recruiting solutions for healthcare companies, was able to assess cultural fit and reduce their clients’ first-year turnover by 38% by analyzing candidates’ job applications and their personal data on public databases
- Infosys, an IT services company, plans to increase pay fairness by using an AI application to establish salary raises based on the comparison of employees’ performance
- Workday, an ERP cloud system, identifies employees at risk of leaving by cross-referencing market demand for a specific position against employee’s data-points, such as raise frequency, performance appraisals scores, manager’s turnover, etc.
- Unilever, a global consumer products company, has reduced time-to-hire by leveraging AI to screen candidate video recordings to create a short list of candidates for in-person interviews
- Humanyze, a technology company, compiles data from emails, calendars, voice recordings, and even most-visited office locations to analyze how employees organize and prioritize their time
- Retailers are leveraging AI-powered chatbots to deliver an improved new-hire onboarding experience, while reducing the number of questions escalated to their HR service centers
The market is gradually exploring AI-based solutions, and increased AI adoption in HR is expected after early adopters realize and disclose operational gains. Although nearly 85% of companies believe that AI will be a competitive advantage, only 5% are currently investing in AI. Google estimates that AI can streamline operations of more than 10 million organizations around the globe.
- The Economist Special Report: GrAIt expectations: Non-tech Businesses are Beginning to Use Artificial Intelligence at Scale
- Forbes: How AI Is Transforming HR Departments
- Shopify Blogs: HR Chatbots: How AI Can Help Onboard and Train Your Retail Employees