AI and Automation in HR: Exploring Applications, Challenges, and Benefits

Artificial intelligence has the power to transform the way we do work, making organizations more human-centric than ever. The potential of automation and AI in HR is undeniable – helping your HR team better understand existing talent, identify the right employees for each role, and create a more successful and productive workforce.

But how can AI make work more human? 

As AI advances, it can augment human capabilities and free us up to apply soft skills‌ — ‌such as communication, critical thinking, and creativity‌. From automating repetitive tasks to fostering more tailored and meaningful experiences, AI plays an important role in humanizing the workplace.

Discover what AI in HR is, what it’s capable of, and how you can use technology to automate tasks to apply a more human touch to HR processes and the employee experience.

AI in HR has endless potential, and pioneering HR professionals identify new use cases every day. But there are also tried-and-true applications every HR manager needs to know. Learn about these common types of AI in HR and how you can use them to improve your processes.

Automation

Automation is the use of data and (sometimes) AI-powered tools to automate processes and tasks that would otherwise need to be completed manually. 

Of course, not all automation is AI-powered. Traditional HR workflow software relies on humans to design the journeys that are then automated and deployed to improve the employee experience. This software can automatically guide managers and their teams through essential moments in the employee journey, such as onboarding, professional development, or performance conversations.

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Machine Learning

Machine learning is a form of AI that enables computers to learn from data and detect patterns without being explicitly programmed. By leveraging machine learning technology, HR teams can streamline their processes, reduce manual labor, and improve accuracy and speed. 

For example, HR professionals can use machine learning to automatically review job descriptions and applications while matching qualified candidates to open positions. This can speed up applicant processing while controlling for unconscious biases typically displayed by human recruiters.

Natural Language Processing

Natural language processing (NLP) is a form of AI that enables computers to understand, interpret, and manipulate human language. With the help of NLP, HR teams can quickly and accurately detect patterns in written data, such as identifying keywords in resumes or analyzing feedback in employee performance reviews.

Hiring managers, for example, may use NLP to analyze recorded interviews, with the technology scoring candidates based on the skills and abilities listed in the job description. 

Predictive Analytics

Predictive analytics is a data analysis method that uses predictive models to identify patterns and relationships in data. By using algorithms programmed into intelligent HR software, HR teams can better forecast future trends and outcomes.

For example, predictive analytics can identify likely employee attrition scenarios, helping HR teams create more targeted and successful retention strategies. As HR professionals learn how to ask better questions of the data, they can generate richer insights and actively engage the workforce.

Generative AI

Generative AI is a type of artificial intelligence that uses algorithms to generate new content based on existing data. Generative AI’s power lies in its ability to process unstructured data, expanding what humans can feed into these tools. 

For example, AI-driven recruiting tools can automatically generate job descriptions based on data from past successful hires, helping HR teams create job postings more quickly and with greater effectiveness in attracting ideal candidates.

There’s not a facet of HR practice that can’t benefit from AI and automation in some way. Here are six of HR’s top use cases.

Talent Acquisition and Recruitment 

One of the earliest uses of AI in HR was recruitment, and it’s become standard for recruiting software to include built-in AI capabilities. 

You can use AI in recruiting to automatically post job openings where they’re most likely to reach the right candidates and to parse resume data for relevant skills. This speeds up HR’s ability to identify and connect with the best candidates. AI can also be used to automate interview scheduling and provide predictive analysis of interviews themselves.

Employee Onboarding

HR teams can streamline the onboarding process by automating mundane, manual tasks such as paperwork processing, background checks, and IT provisioning and access. This especially helps with onboarding, as new hires can complete these tasks early and spend their first official day getting to know their colleagues and the job role. 

HR teams can also use AI to help hiring managers create intelligent onboarding workflows that are uniquely designed to ramp their new hires to productivity. These workflows would include integrating access to all the necessary tools needed for the new hire to complete their tasks.

Performance Management

Performance management can be overwhelming for managers and employees alike. With automation, you can streamline the performance management process by reminding managers about check-ins and what’s most important to discuss based on previous performance data. 

At a higher level, AI-based tools can interpret a variety of workplace data, including data related to employee work activities. The result is better insights into individual and team performance and how to improve. You can also use AI tools to track employee engagement and identify the impact of disengagement on performance.

Employee Engagement and Retention

By using AI, HR teams can better understand their employees’ needs and interests. AI can analyze data from surveys, employee feedback, and other sources to gain insights into employee satisfaction, motivation, and engagement. 

Learning and Development

Just like with employee performance and engagement, AI-powered software can analyze data to identify learning and development (L&D) needs, including insight on how employees learn best. It can help HR teams quantify the impact of L&D programs on employee performance and inform decisions about L&D structure.

Automation can also help with the development and delivery of personalized learning pathways and content based on employee needs and job roles. You might design your workflow to suggest new learning opportunities as employees achieve developmental milestones, for example.

Talent Management and Internal Mobility

Talent management is the process of developing and retaining a motivated and engaged workforce to achieve long-term organizational success. By applying predictive analytics to workforce data, you can generate possible business scenarios and the capabilities your workforce needs to overcome those challenges.

To build a more resilient workforce, HR can use AI technologies to inform internal mobility strategies. AI tools can identify high-performing employees and pair their skills and experiences with matching job roles within the organization. 

AI has the potential to revolutionize work, but there are risks for employers to consider. Discover how to keep your organization safe while reaping the benefits of AI in HR.

Data Privacy

Employee data security is always a priority, and AI introduces new risks. Without proper security measures, employee data could be exposed or hacked by malicious actors, leading to a variety of business, legal, and financial repercussions. Privacy is also a concern, as AI tools often require access to confidential employee data, such as personally identifiable information and performance ratings.

For this reason, HR teams must protect employee data when using AI tools by encrypting data, using multifactor authentication, and training employees on data privacy protocols.

Bias in AI Systems

AI systems are only as good as the data they’re trained on. Biased data leads to biased outputs and potentially discriminatory decisions in recruitment, performance reviews, and other HR processes. 

AI bias can be difficult to detect and mitigate, especially when hidden within algorithms and data sets. This means that HR teams need to be extra vigilant when using AI systems and assessing the validity and accuracy of data. Conduct comprehensive data audits and engage with knowledgeable stakeholders, including third-party experts, to ensure that your data is as objective as possible before using it to make decisions. Auditing AI tools for bias is an ongoing task as new data is introduced and as AI models evolve with additional training.

Legal and Regulatory Compliance 

AI technology is constantly evolving, and the regulatory landscape is fractured, inconsistent, and rapidly changing. HR teams also need to understand that many existing laws apply to the use of AI, including in hiring, employee evaluations, and promotion decisions. 

Reach out to your company’s legal team to understand existing laws and regulations related to HR’s use of AI and to build a strategy for ethical, compliant AI use.

Implementation Challenges

Adopting something as complex as AI in HR comes with implementation challenges. You’ll need new tools and processes that may be unfamiliar to HR teams. Furthermore, AI may require significant technical training and experience your staff might not have.

Addressing these challenges requires a comprehensive change management plan. Start by winning buy-in from top leadership and other key stakeholders. Share the benefits of AI tools while addressing the natural concerns people have about its use. 

Your implementation should have stages, with regular check-ins to assess progress. Make sure stakeholders, including your workforce, stay informed and understand what their role in the change looks like.

Reliability of AI Predictions 

AI algorithms are only as good as the data they’re trained on, and if the data is incomplete, incorrect, or biased, you’ll generate less accurate predictions. Even AI experts can struggle to understand exactly how their algorithms work, which complicates your ability to identify and correct underlying errors. 

Consequently, HR teams must be vigilant in checking the accuracy of AI predictions to ensure that they are reliable and trustworthy. Work with your IT team and vendors to learn how. 

Loss of the Human Touch

With its ability to streamline manual tasks and free up more time for HR teams and managers to engage with employees, AI in HR has huge potential for making work more human. But the opposite is also true. If AI isn’t implemented carefully, relegating certain tasks and roles to AI could take away the human touch from certain areas of HR. 

For example, if AI is used to automate employee recognition, the experience of being recognized may be less meaningful than a human-to-human interaction. 

HR departments are always looking to be more efficient and effective in driving business outcomes through the workforce. The appeal of AI is its ability to contribute in both areas. Here are six benefits of bringing HR, automation, and AI together.

Efficiency and Productivity

HR teams can save time and be more productive by automating tedious or repetitive tasks and focusing on high-value activities such as strategic planning and team building.

Improved Decision Making

By leveraging AI technology, HR professionals can quickly analyze vast amounts of data that can inform decisions on employee recruitment, retention, and development. AI can assess the skills and experience of potential candidates, identify suitable job opportunities for internal mobility, and recommend the best course of action for development and training. AI can also improve HR’s analysis of employee performance by tapping into existing data instead of relying on incomplete or biased opinions.

Personalized Employee Experience

Everyone experiences work differently, and requires different levels of support. AI-driven HR systems can analyze data from an employee’s learning profile and provide personalized feedback and suggestions for development. It can remind managers about an employee’s communication preferences before they head into a check-in. 

HR leaders can also use automation to personalize onboarding and offboarding processes, and every employee journey in between. By leveraging powerful logic and rules, HR workflow software can help connect employees with the right information and people to make their work more meaningful. 

Improved Talent Acquisition

AI tools and technologies help HR departments quickly identify and source candidates with the right qualifications and experience. ‌AI can automate aspects of the recruiting process, such as job postings and terms of employment. This provides a more consistent candidate experience while freeing up HR departments to focus on furthering relationships with the right candidates.

Targeted Employee Retention

AI can analyze large quantities of employee data, such as performance reviews, job satisfaction surveys, and productivity data, to identify which employees are at the highest risk of leaving the organization. By looking at data from multiple sources, AI helps HR teams identify patterns of behavior and characteristics that indicate a higher risk of turnover.

Once these patterns are identified, HR teams can develop targeted interventions, such as additional training, flexible working hours, or mentorship opportunities. 

Reduced Costs

Automation saves HR teams money by streamlining processes in recruitment, onboarding, and payroll, which can significantly reduce hard costs, such as labor, while allowing you to focus your employee base on higher-value activities.

AI and automation can reduce your soft costs, too. These may not be immediately measurable, but you’ll feel the impact over time. These soft costs include making better, faster hiring decisions, generating better insights into employee performance, and improving the accuracy of company decisions about budgeting and resource allocation.

AI in HR is poised to become a key component of any successful HR strategy in the future. With the right implementation and training, you can leverage the power of AI to enhance HR operations and create a more frictionless, efficient, successful — and human — workplace.

Not sure where to start? Contact Enboarder to learn how our Intelligent Journey Platform can automate your employee journeys and create meaningful ties to people, information, and technology in your organization.

You can also watch a replay of our new webinar covering 2025 HR trends, including the rise of AI and automation.