Top use cases for artificial Intelligence in HR

The march of automation at the workplace continues at a furious pace, according to the Global Talent Trends 2019 report from Mercer:

• Around the world, 60 percent of companies plan to increase their usage of workplace automation

• In the US, the number stands at 59 percent

• In China, the number is 55 percent

As with other departments, companies around the world are trying to play catch-up for their HR departments, which currently lag behind other teams in leveraging AI at the workplace. Global HR has been late to the party, with marketing and sales having stolen a march on it.

What role can AI play in the HR domain?

HR teams leverage the power of AI algorithms to make decisions and improve their quality. Talent acquisition, or finding the best talent in a tight market, remains the key use of artificial intelligence in HR, but other use cases have gained ground. Further automation of HR processes will be critical to fulfil the potential of HR in facilitating successful corporate transformation.

According to the 2018 Annual Employer Survey by Littler, here is what companies are using AI and advanced data analytics for:

• Hiring and recruitment: 49 percent

• Strategic and employee management decisions: 31 percent

• Analysis of workplace policies: 24 percent

•Automating tasks previously handled by employees: 22 percent

The Mercer report also gives similar pointers for 2019. Among companies across the world, 88 percent use AI for HR, with 83 percent of US companies and 100 percent of Chinese companies doing the same. The chief use cases for artificial intelligence in HR are:

• Chatbots to look for company information (benefits, policies, and others): 56 percent

• Perusing publicly-available data such as social media profiles to find the best candidates: 44 percent

• Giving learning and training recommendations to employees: 43 percent

• Chatbots to engage with candidates during recruitment: 41 percent

• Candidate screening and assessment during recruitment: 40 percent

Other areas of involvement for AI in global HR include:

• Customizing compensation and improving its benchmarking

• Suggesting career paths or job openings for current employees

• Performance management

• Employee self-service e.g. requesting time off or changing benefits

• Identifying disengaged employees or those who might exit

Which specific use cases exist for AI in HR?

Here are the details of the uses to which AI can be put in the endeavor to better perform HR duties:

• Chatbots: These can help employees in accessing company and personal information from any location and at any time. Text-based responses are useful in responding to common employee questions. Surveys have indicated how when it comes to transactional enquiries on leave of absence, open enrolment, and paid time off, employees are more comfortable using chatbots as compared to other forms of contact.

• Avoiding bias: Hiring primarily relies on human instinct and manual processes for the final decisions. AI can help this search by ensuring that there are no bias-inducing keyword and manual search processes that exclude qualified minority candidates. By combing through voluminous data, it helps recruiters get a fair picture of candidates who qualify. The best way to use AI is to bolster the capabilities of HR personnel in hiring the right people and spending time on candidate care and other strategic aspects.

• Equitable pay: Several jurisdictions in the US have legally forbidden employers from enquiring of prospective hires about their previous compensation. This is to avoid perpetual discriminatory pay practices in existence for years and based on ethnicity, gender, and race. Technology enables better discussions between HR and the compensation team and executives.

• Responding to litigation: Lawsuits on employment rely heavily on facts from documents and other sources. Leveraging data early in such cases could reveal insights well before the matter reaches an irrecoverable depth.