66% of CEOs think Generative AI can drive significant value in Human Resources.
Since the AI landscape is rapidly changing HR, leaders must stay ahead by understanding the core capabilities and use cases available. Many HR leaders feel a sense of urgency about moving forward with artificial intelligence (AI) in the HR function. 38% of HR leaders have explored or implemented AI solutions to improve process efficiency within their organization (Gartner).
76% of HR leaders believe that if their organization does not adopt and implement AI solutions, such as generative AI, in the next 12 to 24 months, they will be lagging in organizational success compared to those that do. HR and executive leaders can harness the power of AI to create a more efficient, effective, and employee-centric HR function for the future.
How organizational can success by implementing Gen AI in HR
- Automation: A study by McKinsey & Company estimates that up to 50% of current HR activities could be automated using AI.
AI can handle repetitive & monotonous tasks like resume screening, scheduling interviews, and onboarding new hires. This frees up HR professionals time to focus on more strategic initiatives, providing personalized attention and focusing on employee well-being. - 24/7 HR Support Assistant: 74% of hiring professionals hope that integrating generative AI into their recruiting process will automate repetitive tasks and free up time. LinkedIn data, 2023.
AI-powered assistance provides immediate support to HR staff and even employees, outside of regular work hours, improving accessibility, streamline faster resolution of issues, reducing wait times, and the strain on HR professionals for simple common queries. - Targeted Recruitment: 62% of professionals said they lose interest in a job if they don’t hear back from the employer within 2 weeks — or 10 business days — after the initial interview. That number jumps to 77% if there is no status update within 3 weeks. AI can personalize the recruitment process by matching candidates with the right jobs based on their pre-defined skills and experience criteria, identifying the best-fit candidate. This leads to a better candidate experience and a higher chance of attracting top talent, reducing burden of HR.
- Onboarding Automation and Resource Access: AI chatbots can guide new hires through the onboarding process, answering questions and providing easy access to essential resources & information they need like training materials, company policies, and benefit information. Studies suggest that personalized onboarding experiences can significantly reduce the time it takes for new hires to become productive members of the team.
- Employee Engagement: 63% of HR leaders aim to use generative AI for improving efficiency and improving the employee experience (52%), among other goals. Chatbots powered by generative AI answer employee questions, instantly providing resolution in real-time about benefits, policies, and payroll anytime, offer personalized conversational experience, based on an employee’s role, department, or previous inquiries. This can help to improve employee satisfaction and retention.
- Data-driven Decision Making with Accuracy: With the power of RAG, Gen AI can analyze vast amounts of HR data to identify trends and patterns with accuracy and context . This allows HR leaders to make more informed decisions about recruitment, retention, and talent development.
- HR Content Creation: AI can generate reports, FAQs, job descriptions, offer letters, and summaries of company policies, ensuring consistency and clarity in HR communication with the capability of RAG, keeping content current & relevant, with grounded data of the organisation.
Key benefits of Generative AI brings in HR management
- Lower Recruitment Costs: By automating tasks and improving the efficiency of the hiring process, AI can help organizations reduce recruitment costs.
- Decreased Turnover: By improving employee engagement and retention, AI can help organizations save money on the costs associated with employee turnover.
- Increased Talent Acquisition and Retention: By attracting top talent and fostering a positive employee experience, AI can help organizations build a strong and competitive workforce.
- Improved Innovation: When HR professionals are freed from administrative tasks, they can focus on strategic initiatives that drive innovation and growth.
- Improved Employee Engagement: Streamlined onboarding, personalized training, and 24/7 support can lead to a more engaged and satisfied workforce.
- Faster Time-to-Productivity: By providing targeted information and resources, GenAI can help new hires become productive members of the team faster.
- Increased Efficiency and Scalability: 45% agree that AI in HR boosts their company’s scalability and drives business impact, (People Matters, Eightfold).
- Enhanced Employer Brand: A positive employee experience contributes to a strong employer brand, attracting top talent.
Which sectors would benefit the most for abopting Gen AI in HR
High-Volume Recruitment Industries Sectors: Retail, Call Centers, Hospitality, Manufacturing
These sectors typically deal with a large volume of applications for entry-level or customer service positions. AI can automate resume screening, identify relevant skills and experience, and shortlist qualified candidates, significantly reducing HR workload and cost saving in this sectors.
Competitive Talent Acquisition Industries Sectors: Technology, Finance, Healthcare, Pharmaceuticals
These sectors often compete for highly skilled and specialized talent. AI can analyze job descriptions and candidate profiles to ensure a strong match, reducing skills gaps and improving hiring quality.
The benefits of AI in recruitment and HR are not limited to these specific sectors. Companies across various industries can leverage AI to improve efficiency, reduce costs, and enhance the talent acquisition process.
What is the future of Generative AI and Human Resources?
The key importance of Gen AI in HR
Generative AI will significantly influence the work carried out by the HR function. This influence encompasses HR operations; recruitment; onboarding, learning and development; and talent management.
Chief Human Resources Officers (CHROs) are keen on exploring and implementing generative AI to streamline processes, reducing monotonous routine tasks, resume screening, generating HR-related content or documentation and improving employee experience, enhancing retention rate.
Is Gen AI going to replace HR?
The future of AI in HR is about augmentation, not replacement. GenAI is more likely to collaboate & assist HR professionals in their daily tasks to improve the productivity & effciency
HR professionals play a crucial role in fostering a positive company culture and building relationships with employees. Their judgment and experience is pivotal to make strategic decisions about talent management, performance reviews, handling sensitive employee relations issues, or complex negotiations during recruitment
The future of HR likely involves a collaborative approach where GenAI handles administrative tasks and data analysis, while HR professionals leverage these insights to make informed decisions and build strong relationships with employees.
What is next for AI in Human Resource?
New Roles and Skillsets: The transition to AI-driven HR requires skilled professionals to manage change effectively and address employee concerns. HR professionals will need to become strategic partners focusing on data analysis, AI implementation, and developing a future-proof HR strategy.
Collaboration with Executive Leaders: Executives and HR must work together to ensure AI implementation aligns with overall business goals and talent management strategies. Organizations need to invest in upskilling HR professionals to develop the necessary skills for working with AI tools and data analysis.
Strong Data Governance: Implement robust data security and privacy practices to protect employee data. Increasing the reliability & accuracy of the Gen AI tech by eliminating the Hallucination & Black-box concerns & enhancing Explainable AI to build trust in AI model
At Fluid AI, we stand at the forefront of this AI revolution, helping organizations kickstart their AI journey. If you’re seeking a solution for your organization, look no further. We’re committed to making your organization future-ready, just like we’ve done for many others.
Take the first step towards this exciting journey by booking a free demo call with us today. Let’s explore the possibilities together and unlock the full potential of AI for your organization. Remember, the future belongs to those who prepare for it today.
