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Artificial Intelligence Applications in Human Resources

Digital Institute
Last updated: January 19, 2021 · 8 min read
Artificial Intelligence Applications in Human Resources

"Artificial intelligence is a sub-field of computer science. Its goal is to enable the development of computers that are able to do things normally done by people. In particular, things associated with people acting intelligently."

In other words, artificial intelligence is a branch of computer science whose main goal is to develop computers that can do things normally done by humans.

To put it even more simply, AI is the ability of machines to imitate human intelligence. It allows machines to learn and adapt automatically based on data analysis so that they can give more refined responses depending on the situation.

Why is everyone talking about artificial intelligence today?

Artificial intelligence has the capacity to make real-time decisions based on learning algorithms and efficient computing technologies. That is exactly where its importance comes from: its real-time nature and its ability to make decisions are what make AI so significant. Until now, making and implementing decisions was a human skill; from now on, AI will also be able to make important decisions.

To give a sense of the scale of its impact, here is a forecast from McKinsey:

By 2030, artificial intelligence will have an impact of 13 trillion dollars on the global economy.

In this article we will focus on HR, but it's worth mentioning that AI will be used in many areas beyond HR too. Sales and marketing are just a few of them. For example, over the next few years, AI will be the technology businesses benefit from most in understanding their target markets and developing results-driven sales strategies.

What stages will artificial intelligence go through?

As with everything, the use and spread of AI processes, whether in HR or any other field, will happen in certain stages. Let's take a very brief look at these stages.

1 – Assisted Intelligence:

You can think of this first stage as the process of making repetitive, standardized and routine tasks, which nonetheless take up a significant amount of time, as automatic and as independent of people as possible. In other words, AI supports you, makes your work easier and saves you time, but you, the human, are still the main player in the process.

The initial projects of companies that want to digitalize their HR processes are generally designed within this scope.

2 – Augmented Intelligence

We can think of the second stage, "Augmented Intelligence," as a transition stage. Here, as human–machine interaction and collaboration increase, creativity and innovation come to the fore in processes, and "smart systems" are built at the same time. Process efficiency is among the key gains at this stage. While the human focus gradually decreases, the influence of systems and AI gradually increases.

3 – Autonomous Intelligence

At this stage, the "smart systems" built in the second stage have a say in all management and decision-making mechanisms. In other words, decisions once made by people can now be made by AI. The most important point here will be that these decisions are real-time, sustainable and adaptable and that they ensure a seamless workflow.

Now, let's look at what AI will affect, and how, in HR's main functions.

1 – Talent Acquisition:

Recruitment is arguably the first area where AI will be used in HR, and the one where it will be used most. What is expected of AI here can be listed as follows:

· First, screening candidates,

· Then identifying and matching the candidates who best fit the competency and skill set and the years of experience defined for the company, the position and the role,

· Creating a shortlist,

· Maintaining the database,

· Contacting potential candidates and scheduling interviews,

· Answering questions from candidates and job seekers.

As these tasks suggest, the goal here will be to make this highly operational work as independent of people as possible, both to save time and to redirect that time and human capacity toward productive work in other areas.

In later stages we will also see AI conducting all interviews and making candidate selections, that is, acting as the decision-maker (stage 3). But for now, I think the part that really deserves attention is that, thanks to AI, HR professionals will be able to devote their energy to entirely new priorities or to revisiting their existing topics.

2 – Onboarding:

Research shows that the factor that most affects how likely employees are to stay with a company for a long time is having a "happy employee experience." In this sense, the first stage of the employee experience is "onboarding," which encompasses the entire recruitment and orientation process.

It may be useful to share two important notes about onboarding here.

A) Onboarding actually begins long before hiring. The processes in which a potential candidate gets to know your company, researches it, applies and talks or exchanges views about you with the people around them are all part of onboarding.

B) On the other hand, onboarding should not be understood as a synonym for orientation. The two terms are often used interchangeably, but that isn't really accurate. Orientation is a very important part of the onboarding process. In other words, onboarding includes orientation but is not limited to it. It is also fair to say that while orientation offers much more general content aimed at everyone (we treat it as company or team orientation), the success of onboarding, that is, the process of "helping the individual adapt to the job," is directly related to how "personalized" it is. So the more personalized the solutions your company can offer in its onboarding processes, the more successful and efficient the process you will have designed.

In short, if we can make these processes as software-driven as possible, with the help of algorithms and AI that are tailored to the person's job and role profile and focused on their position, we will become increasingly successful HR organizations with high retention rates in the period ahead.

3 – Learning & Development:

Now let's turn to another area where we will use AI most actively. New technologies will stand out so much here that the World Economic Forum's Future of Jobs 2020 report even includes data suggesting that the need for professionals in this field (learning and development specialists, etc.) will decrease significantly.

Here is a very brief look at the developments to come.

· AI-powered algorithms will offer development recommendations (videos, alternative training programs, bite-sized learning content, etc.) based on people's competencies.

· Likewise, based on an employee's position, they will track changing circumstances and topics in the person's field and emerging technologies, in short, the latest developments one needs to learn about, bring them to us with the help of different software, and present them to us as content.

· In addition, employees' daily activities, the work they do, their projects and the difficulties they face will be analyzed by software, and the employee's real needs will be identified and suitable learning and development programs recommended. For example: "In percentage terms, you struggle most with ….. ; you really need to develop in this area. I recommend you join this program." Situations like this will become part of our lives with AI.

· Another type of analysis that will emerge alongside "activity analysis" will be "experience analysis." What do I mean? With AI technology, all the data collected from a person's experience over the years will be analyzed, revealing what kind of training regime that employee needs.

· Smart algorithms will also bring forward different recommendations by developing learning strategies that help people learn better and faster.

· Over time, AI systems will also influence people's career management processes. It is already possible to say that people who need a career change in particular will benefit greatly from AI in working out what kind of career path or alternative can be created with the training they have received.

· Management teams will also use algorithms to build teams that are more efficient, more focused and better integrated with business results.

· Based on all of this, we can already say with confidence that the e-learning infrastructures, LMS systems and video learning platforms we use today will also undergo a major transformation.

What will be the overall benefit of artificial intelligence for HR organizations?

Artificial intelligence will accelerate, change and transform many areas. A few of the benefits it will offer HR:

  • It will improve employee experience processes and personalize them to a large extent.
  • Thanks to AI, we will be talking about far more individual, person-centered practices.
  • Efficiency and productivity will increase.
  • Costs will decrease.
  • Time will be saved, and that time will be redirected toward new priorities and productive work.
  • Operational tasks and processes will be greatly reduced.

AI Support in All Decision-Making Mechanisms

The ideal strategy for using AI in HR management will be to start by applying it to routine work and to achieve certain gains (in time, human resources and cost), particularly in those processes. After that, the goal should be to practice "Data-Driven HR Management" by conducting more effective analyses with smart data systems and making data-driven decisions.

A final word: taking into account the dynamics of your company and your industry, start identifying the areas where you can benefit from AI as soon as possible. And there is great value in doing this not only for HR but for your other functions as well, because none of us can afford the luxury of being late to the future anymore.

Stay healthy,

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Author
Digital Institute
A research and consulting firm in Türkiye that runs employee satisfaction and engagement surveys, bringing research, technology and consulting together.