For decades, the HR department has been the ‘heart’ of the company, looking after hiring and creating a work culture that ensures employee satisfaction. With the growth of AI, the question is, can such systems eventually take over the work of an HR manager?
AI has already begun reshaping HR departments. It is now possible to automate repetitive tasks, analyze workforce data, improve hiring decisions, and enhance others—AI tools are even used for recruitment, engagement, and performance evaluations. Even with such advancements in AI, does it mean human HR managers must be reorganized completely?
Not necessarily.
AI has advanced significantly, but HR is still centered on people—listening, their comprehension, and formulating decisions from real experiences. AI still struggles with tasks like these. So, what is the current status of the use of AI in HR and what does the future hold? Let’s take a closer look.
The Evolution of AI in HR: Where Are We Now?
There has been a notable increase in the use of AI technology in HR departments and it continues to grow at a rapid rate. AI is being used in support of employees, recruitment, and even analytics. It was reported in 2023 by Gartner that 58% of companies had already started using AI in one or more HR functions.
Let’s take a closer look at the changes brought by AI in HR today:
AI in Recruitment and Hiring
Recruitment is by far considered to be one of the most strenuous and time-consuming processes in an HR department. There are several processes involved that require a lot of manual work such as resume screening, scheduling interviews, and coordinating with the candidate. With advanced technology, applicants are now able to use AI-powered preferred Applicant Tracking Systems (ATS) and AI assessment tools that:
- Scan resumes within seconds and removes unqualified candidates.
- Utilize past hiring data to use machine-learning to predict the success probability of a candidate.
- AI can conduct video interviews and evaluate the candidates through tone, word choice, and facial expression to determine suitability.
A recent survey by LinkedIn showed that 67% of recruiters have noticed an improvement in the speed and accuracy of hiring, especially for recruits in high-number positions. But AI is not infallible, it overlooks softer skills and other unconventional experiences that many recruiters appreciate.
AI in Employee Engagement and Support
With the rapid growth of technology today, companies are starting to integrate AI intelligent software that manages their employee’s queries. AI chatbots like ChatGPT and Leena AI have the capabilities of answering employee inquiries about their benefits, applying for leave, organizational policies, and training materials at any hour of the day.
This has lots of advantages for both HR departments and employees.
- Employees now can access and receive information promptly which enhances their overall productivity and morale.
- HR representatives now can shift their attention to more strategic and high-priority tasks instead of dealing with trivial questions that they have already answered multiple times.
AI in Employee Performance Management and Employee Retention
AI is also revolutionizing the ways businesses monitor productivity and retention. AI systems offer continuous monitoring and feedback, unlike traditional yearly reviews. These systems analyze sentiments, moods, productivity, and engagement levels.
Platforms such as Eightfold AI and Visier can enable HR departments to:
- Analyze outputs from engagement surveys to identify employees flagged at risk of leaving.
- Suggest enhanced training programs tailored to specific employee needs.
- Provide strategically relevant and personalized tailored advice on career advancement pathways.
With AI, organizations can analyze workforce data and avoid issues like employee burnout or resignations.
The Case for AI as an HR Leader: What AI Does Best
Why is AI such a big deal for HR? There are a few reasons why AI seems to fit in better than human HR staff:
Speed and Efficiency in Data Processing
With the help of technology, AI is capable of dealing with enormous amounts of data. For example, an HR person can have several resumes, performance reports, payroll records, employee feedback data, and other information to deal with. In a matter of seconds, AI can process and analyze all the information uncovering useful trends and insights that would take a human several weeks to find.
As an example, AI can automatically sort and filter thousands of applications which can’t be done manually in a single application, it would take ages to do that. This will drastically increase the efficiency of the hiring process.
Reducing Bias in Hiring
Along with using AI in HR comes a lot of benefits, but one of the biggest is the unconscious bias that exists, such as gender, name, age, ethnicity, or even the persona themself. AI attempts to eliminate this bias by concentrating on skills, experience, and qualifications instead.
According to research conducted by Harvard Business Review, AI-enabled hiring tools can increase diversity in a company by almost 30%. However, AI still needs careful watching because it is known to be biased through the data it has been trained on.
Improving Employee Experience
Today’s employees look for tailored, instant solutions to their workplace problems. This need is being met by AI chatbots and HR associates who can respond to frequently asked HR questions at once.
An employee’s experience and satisfaction level increases by 20% to 30% when AI is integrated, according to Gartner research. Increased employee satisfaction leads to decreasing employee turnover, proving that AI is an essential asset for HR teams.
The Limits of AI: Why AI Can’t Replace HR Managers (Yet!)
HR teams are still untouchable by AI technology, regardless of progress made in other areas. Here’s why:
AI Lacks Emotional Intelligence
AI will never offer empathy, understanding, or personal judgment to a person facing a sensitive situation. Unlike humans, who by nature understand people through their feelings, motivations, and personal struggles, AI merely identifies patterns and analyzes data.
For instance, if an employee is battling mental health issues, AI will recognize a downfall in productivity but won’t be able to offer any form of support, let alone a humanized approach, to get them the help they require.
AI Struggles with Complex Decision-Making
AI operates on algorithms, an AI-generated list of instructions, which offers straightforward solutions. Because of this, AI offers assistance with basic tasks:
- Resolving workplace conflicts
- Handling sensitive employee terminations
- Managing ethical concerns in promotions and layoffs
AI can provide recommendations based on data, however, complex decisions like sensitive terminations require human experience combined with an intuitive understanding of company culture, judgment, and deep understanding.
Employees Still Prefer Human Interaction
Despite the rapid advancements in AI, the vast majority of employees prefer to have real human conversations with an HR representative.
McKinsey revealed in a 2023 survey that 73% of employees would rather talk to a human representative than an AI chatbot when discussing workplace problems. Although AI can complete many clerical duties, employees would prefer a human to discuss sensitive issues like career advancement, workplace conflict, or more personal obstacles.
The Future of HR: AI and Humans Working Together
Now, can we say AI will replace HR managers anytime soon? Doesn’t look like it. Rather, AI will deal with monotonous tasks such as data entry and file duties while humans will pay attention to strategizing, managing, and employee well-being.
We have to focus on optimizing the balance between technology and human resources.
- AI as an HR Co-Pilot: HR teams will continue to benefit from AI’s assistance as it automates monotonous activities while allowing humans to retain ultimate authority.
- Smarter Predictive Analysis: AI will provide Human Resource Managers with analytics on market demands, helping them make data-backed decisions like hiring, retention, and employee engagement.
- Customized Career Guidance: Each employee will have their career recommended to them based on their expertise and interests.
- Improved AI Ethics & Governance: With the increasing adoption of AI, corporations will shift their focus towards improving governance frameworks to enforce unbiased AI practices while also investing in advanced HR solutions and incorporating comprehensive AI ethics training.
Final Thoughts: HR Leaders Aren’t Going Anywhere
The emergence of AI has made HR functions more efficient and resourceful. Does that mean AI will replace HR managers? No.
HR doesn’t need to revolve around choosing between AI and people. It’s about finding the ideal combination of both. Machines are great at performing data examinations, automating tasks, and carrying out administrative activities. However, human judgment, compassion, and ethics are prime functions reserved for human HR professionals.
Here at Auzmor, we believe AI should be utilized in enhancing HR functions, not replacing human resources. Incorporating AI insights and analytics with human input will allow for improved business productivity and employee engagement that is driven by human focus.
Your next HR manager will most likely utilize AI technology, but rest assured, they won’t be AI—at least not anytime soon!
