Innovation | How can AI support HR?

How can AI support HR?

Organisations benefit from AI embedded in daily platforms, including HR systems. AI aids recruitment, onboarding, monitoring, support, and administration. It improves efficiency, productivity, engagement, and decision-making in HR. Embracing AI brings numerous benefits. Phase 3 offers technology solutions and a free HR Systems Benchmarking Tool.

Most of us aren’t consciously using AI on a daily basis, even with the rapid rise of ChatGPT. But organisations around the world have been benefiting from AI embedded into the platforms they use every day for years now.

Whilst a lot of the recent buzz around AI has been how powerful it is as a learning or creative aid, businesses have been putting AI alongside machine learning to work across finance, planning, marketing and - of course - HR.

AI isn’t designed to take the human out of human resources, but it is being used right now by progressive HR teams to supplement their own work, enhance their decision making and boost productivity.

How HR utilises AI right now

Many HR systems leverage some level of artificial intelligence or machine learning (ML) to understand trends, spot patterns and automate tasks. And that AI usage isn’t restricted to back-office management either.

Some critical areas where AI is also put to work include:

  • Recruitment: AI is being put to work to assess CVs and identify the best candidates for interviews.

  • Onboarding: New starters benefit from AI with a more seamless onboarding experience.

  • Monitoring: The largest firms on the planet use AI to monitor staff performance in accordance with targets and policy.

  • Support: Quick staff questions that just need a fast, simple answer are now being managed by internal chatbots.

  • Admin: AI alongside ML is taking away the administrative burden of many HR-related tasks.

Wider people-management processes including finance and payroll are also massively benefiting from AI and ML, areas where HR plays a vital role.

So why are HR teams so invested in AI? What benefits are teams seeing from being early adopters of this technology?

The benefits of incorporating AI into the HR function

HR’s role has evolved over the last two decades from problem solvers to key strategic players within the organisation. As HR’s remit has grown, so has its list of responsibilities, platform considerations, legislative requirements and day-to-day admin.

AI is proving extremely useful across all these areas, but especially in aiding strategic decision making and providing a better service for employees.

Change can be daunting, but progressive HR departments that are investing in and embracing technology to support their work are benefiting from:

  • More efficiency: AI can automate a lot of the day-to-day administrative tasks that otherwise fill a HR professional’s day, freeing up more time to work on a strategic level to support organisational goals.

  • Increased productivity: More efficiency means more productivity, and as demands on HR grow, being able to do more with the same number of people is critical for keeping costs down.

  • Boosting the bottom line: HR software that leverages AI is able to crunch thousands of lines of data to understand trends, identify patterns and spot potential cost-saving opportunities. McKinsey data shows how 50% of HR professionals have already seen AI support cost reductions of up to 10% across talent management and rota design.

  • Higher engagement: AI supports engagement by helping organisations to provide better systems across support, performance monitoring, learning and development. Machine learning in employee engagement platforms, such as pulse survey apps or recognition programs, are getting more powerful by the week.

  • Happier new starters: AI embedded into automated onboarding processes support new starters to get their feet under the table more quickly, reducing productivity lag and also reducing the likelihood that they’ll leave within the first 12 months as nearly 20% of workers plan on doing.

  • Reduced churn: AI tools are already available that can predict when an employee has become unhappy and is more likely to leave, known as employee flight risk management. Being able to identify likely leavers ahead of time can save thousands in recruitment fees or lost productivity.

  • Informed decisions: AI and the systems that leverage it include extremely powerful reporting tools to help understand the cause and effect of HR investments - as well as identify upcoming threats.

  • Better recruitment: AI takes the guesswork, the legwork and the unconscious bias out of recruitment by automatically selecting the best potential candidates by analysing CVs versus job specifications.

How many of these benefits would you like to bring to your organisation? If any or all, then AI is likely the next best investment your HR department can make.

Taking a step into the future

AI has almost unlimited potential to expand on the positive influence of HR teams across the world, working in partnership with people leaders to deliver more, more accurately, more quickly, and more effectively.

And it’s not a scary world to dive into. The platforms HR teams use every day for talent management, onboarding, employee engagement, surveys, finance, payroll, timekeeping, holidays, and record keeping… are all increasingly including AI and ML as part of its core offering.

At Phase 3, we help hundreds of businesses every single year to leverage the full power of available technology to better support their HR, finance and payroll objectives.

We know the market and work to understand your requirements too - both immediate and future - to source and help set-up the right software to help you get to where you want to go.

If you’re unsure how effective your existing people technology is and whether investment in that space could deliver some of the AI HR benefits noted above, then our free HR Systems Benchmarking Tool is a great next step.

Exclusive to Phase 3, this tool is ideal for understanding where your organisation is in the HR Systems Development Journey and a clear pathway towards implementing a new system should you need one.

Discover more and take the quick test yourself right here.

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Phase 3

Phase 3 are independent specialists providing comprehensive solutions in digital transformation across HR, Payroll and Finance. We go beyond traditional consultancy, serving as trusted advisors, guiding our clients towards innovative solutions that drive efficiency, growth and sustainability.