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    Why You Should Be Leveraging AI in HR Operations

    A man is thinking deeply with many moving charts and graphs, representing AI in HR.

    Why You Should Be Leveraging AI in HR Operations

    June 21, 2021

    Artificial intelligence (AI) is changing the way people work and businesses operate. Innovators are creating and introducing new technologies in this realm regularly, and that means devices are getting smarter, tasks are becoming faster, and efficient processes are the norm. 

    Here are a few key things to keep in mind:

    • AI is essentially a technology that makes devices and machines smarter. 
    • Computers can actually act and learn similarly to humans, using data and mimicking the natural intelligence of a brain. 
    • AI has been used to create many technologies that are now part of everyday life, like smart assistants, self-driving cars, industrial robots, chatbots, and more.
    • One of the goals of AI integration is to make processes more accurate and efficient. 
    • HR takes advantage of these benefits by integrating AI into normal operations within an organization. 
    • Workflows can be much faster and require less human intervention, and employees can thus save time and businesses can save money. 

    HR departments are also implementing AI to improve the delivery and management of a range of human-related workflows. This guide will walk you through what AI means for the future of HR and the benefits and risks of AI in HR.

    How AI Is Impacting HR

    HR is a unique business function because it has a hand in many other departments, including finance, recruitment, IT, legal, and others. HR requires real humans to manage employees while using the latest technologies to make processes better, like database management, benefits administration, payroll, and more. Here are a few key ways in which AI is impacting HR:

    Data Management 

    AI is playing a crucial role in an HR department’s ability to manage information and use automation tools to complete administrative tasks, like paperwork and data entry, that once took up a lot of work time.

    Payroll

    Payroll management can also improve, thanks to AI. One survey showed that CFOs believe AI will eliminate human error, reduce costs, and increase efficiency and output when applied to payroll and other finance functions that rely on accurate financial information.

    Live Support

    Chatbots are appearing more in HR departments, which allow employees to interact with AI in real time when they have a question about their benefits package or a company policy. These HR chatbots can look up information and deliver quick answers.

    Recruitment

    The recruitment and application review processes can be time-consuming for HR departments. AI allows HR professionals to speed up candidate vetting. Using AI tools helps improve the process for applicants as well, using more user-friendly forms and experiences that attract better talent and ensure that interested parties complete their applications.

    Training

    Companies are now using systems in HR that can help train and onboard new hires. One example is using an online platform that allows workers to learn at their own pace, responding to their level of knowledge and experience and reacting accordingly.

    Scheduling and Intake

    AI tools can also automate scheduling and intake processes for HR, including sending out notifications about upcoming meetings, interviews, or appointments, automating the data upload process for candidates and new hires, and more.

    Self-Service

    Today’s employees love being able to view their information and complete employment forms and processes themselves. More HR workers are implementing online portals where workers can view and update their information, make benefits selections, and view pay stubs, among other tasks. Smarter applications and programs make these self-service improvements possible with automation.

    These impacts and integrations of AI are still fairly new for HR in the grand scheme of things. They will likely continue well into the future, and as AI becomes even more advanced, integrations will no doubt increase and more processes and functions will be enhanced.

    Brain AI graphic

    3 Benefits of Using AI in HR Operations

    HR departments that integrate AI are already seeing lots of positive impacts, both to business efficiency and everyday tasks and processes that the department is responsible for. Here is a deeper look at the key benefits of AI in HR operations:

    1. Speed

    One of the biggest benefits of AI for any industry is creating faster processes. Speed means the department can handle more data, for example, and the burden on employees is lessened. 

    2. Accuracy

    Human error can be a major cause for concern for any business. AI automates processes like data entry and can integrate autofill features in forms so workers aren’t doing a lot of copying and pasting or reentering the same data, which can lead to lots of mistakes.

    3. Employee Satisfaction

    Both HR workers and other employees within a business will appreciate the improvements AI brings to the table, improving employee satisfaction. Faster workflows mean that people aren’t spending too much time on one tedious task, and employees love to be able to use technology to keep tabs on their employment, payroll, and benefits information online.

    These are just a few of the many benefits of AI in HR operations. HR processes and the potential for efficiency will keep changing as the technology continues to update and programs become smarter.

    Risks of AI in HR to Guard Against

    AI does bring a few risks to know about when implementing smarter tools in HR. It is just as important to recognize these risks as it is to understand the benefits so you can make smarter decisions and investments:

    • HR is, of course, centered around thinking and feeling humans. It is not always easy for AI to be able to predict human behavior or apply context to certain data or outcomes. It is thus crucial to keep this in mind and to ensure that AI is simply working alongside employees.
    • AI does speed up the candidate vetting and application review processes. Keep in mind, however, that sometimes keywords on a resume or checking off a list of qualifications does not always mean someone will be a culture fit and right for an open position.
    • Employees might react negatively to dealing with chatbots instead of humans. 

    Remember that effective HR processes like recruiting, application review, and interviewing do take nuance that AI may not be able to provide. HR employees should thus still be overseeing these processes and keeping these shortcomings in mind. Only then can teams take full advantage of the tools while limiting the risks.

    Contact Payroll Management Specialists With Technology Questions

    Considering new HR technologies can be a big step. Learn more about the potential of incorporating AI into your HR systems, like payroll, by connecting with Ignite HCM. Our team offers  ADP payroll management and support services to help you improve your payroll approach. Our consultants have an average of 20 years of ADP experience and the inside connections to deliver unparalleled service.


    Contact Ignite HCM for help with your payroll management and HR optimization needs.

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