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BusinessDay: AI is transforming human resources


By Johan Steyn, 10 August 2023


The field of human resources (HR) is undergoing a transformation with the integration of artificial intelligence (AI) technologies. AI can augment traditional HR practices, from talent recruitment and employee management to predicting employee behaviour and training needs.


One of the most notable advancements in AI implementation in HR is its capability to predict employee resignations months in advance. AI algorithms can analyse various employee data sets, including job satisfaction surveys, performance reviews, attendance records and other metrics, and can forecast with remarkable accuracy when an employee might be considering resigning from their position.


The potential of such a system is tremendous. HR departments can proactively identify and engage with employees who show signs of disengagement or dissatisfaction, offering support and resources to address their concerns. This predictive approach can reduce turnover rates and save companies time and resources in recruiting and training new employees.


AI has opened up a plethora of use cases in HR, transforming the way professionals in the field handle vast amounts of data and make crucial decisions. By leveraging AI-driven tools, HR departments can efficiently process and analyse complex data sets, enabling them to make data-driven decisions that are both accurate and timely.


One of the most prominent use cases is AI-powered applicant tracking systems, which will metamorphose the recruitment process. These intelligent systems can analyse resumes, screen candidates based on predefined criteria, and even conduct initial interviews through natural language processing (NLP) capabilities. As a result, the recruitment process becomes more streamlined and efficient, saving valuable time and resources. These tools help identify the most suitable candidates more effectively, leading to improved hiring outcomes and better talent acquisition for organisations.


Chatbots equipped with NLP capabilities can interact with employees and answer frequently asked questions, reducing the burden on HR staff. AI-driven NLP tools have shown promise in improving response times and providing accurate information, ultimately promoting better employee engagement.


AI bots can efficiently handle routine HR queries, such as leave management, benefits inquiries and payroll questions, freeing up HR staff to focus on more strategic tasks. These tools have the remarkable ability to create personalised experiences for employees, transforming the way organisations engage with their workforce. By leveraging AI-driven technologies, HR departments can tailor interactions and services to cater to the unique needs and preferences of individual employees, fostering a more meaningful and fulfilling work environment.


Despite these remarkable advancements, there are still several critical challenges that need to be addressed before widespread adoption can become a reality. One of the primary concerns is ensuring data privacy and security. HR departments deal with sensitive employee information, including personal details, performance evaluations, and even health-related data. As AI technologies rely heavily on data analysis and storage, there is an increased risk of data breaches and unauthorised access. Regular audits and assessments of data handling practices are essential to identify and rectify potential vulnerabilities proactively.


Employees need to have confidence that AI systems are making fair and unbiased decisions, especially when it comes to areas such as performance evaluations, promotions and salary determinations. AI should not infringe upon an individual’s rights or perpetuate discrimination. HR departments must also ensure that the AI algorithms they deploy are transparent, meaning the decision-making process is understandable and explainable.

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