What Is the Impact of AI on Digital HR?


Following the global outbreak of the Covid-19 pandemic, Artificial Intelligence has found a whole new level of importance in Digital HR. Businesses across many sectors have had to rethink how they operate, particularly human resources (HR), to accommodate their employees’ new needs and necessities. Thus, the adoption of new-age HR technologies for everyday HR activities has received a huge boost.  

Technological tools and solutions are constantly redefining the functional domain of HR practices. Companies, such as Artificial Intelligence (AI), the Internet of Things (IoT), and Machine Learning, are increasingly integrating emerging technologies into their core HR processes to boost employee productivity and engagement. 

Because established/old-age organizations depend heavily on manual labor, changing to a tech-driven operational model has been challenging. However, in recent years, HR technology has been undergoing groundbreaking innovation to optimize employee capabilities and potential in order to achieve organizational goals by implementing new ideas, methods, and technologies.

Organizations strive to maintain a competitive edge in a volatile corporate ecosystem by combining human expertise and technological competencies. With human capital’s creative potential, the HR department is becoming an enabler of business growth and expansion, moving beyond its conventional back-office role. Technology has enabled this to happen. 

Approximately USD 2.7 billion is expected to be generated in the global HR analytics market in 2022, with USD 2.96 billion projected. On the other hand, the HR analytics market is predicted to have a compound annual growth rate of 14.3% will lead to USD 8.59 billion in HR analytics in 2030.  

Impact Of AI on HRM 

AI is transforming the profession of Human Resources Management. Although we are human managers, AI is all set to significantly impact the future of human resources by revolutionizing productivity, precision, and efficiency. 

The use of concepts like Machine Learning is a powerful tool for identifying trends, finding patterns, and making informed decisions. Your HR department will be able to gather an enormous amount of data using AI. Personalization is a buzzword among HR experts. Artificial Intelligence can actually enhance the humane side of the industry! 

In the last four years, 270% more companies have adopted Artificial Intelligence in HR than in the previous four years. Almost nine out of ten businesses are investing in Artificial Intelligence or have done so in the past. 

, What Is the Impact of AI on Digital HR?

Better Services to Line Managers 

Most line managers already use automation and low-level Artificial Intelligence technology in HR for their administrative tasks. There are several types of employee data, including rosters, budgets, timesheets, payrolls, ordering, business intelligence, labor efficiency, and productivity data. Individual performance management and evaluation systems are also set to become more sophisticated. A human type of perception, judgment, and decision is inherent in management and leadership. What’s the verdict? In addition to motivating, reassuring, and directing employees, managers will always be needed to provide immediate guidance on how to serve customers best. The job will, however, become more of an interpretation and execution role rather than one of gathering and synthesizing data as it will rely heavily on real-time data provided by AI in HRM systems. 

Enhancing Management 

Using AI in HR can improve team dynamics by providing timely feedback to team members and increasing accountability on the part of team members. With AI in HR, employees who need positive feedback can be identified and informed at the end of the week. Or even provided feedback using natural language processing and chatbots. A fact-filled agenda can also be prepared for one-on-one meetings highlighting employees needing additional coaching. Many managers lack the time, habit, or data to provide timely, fact-based feedback to employees consistently, and 72% of employees say they would improve their performance if they received more feedback. 

Effective Talent Acquisition 

One of the biggest challenges in the modern job market is finding the right profile for the right designation. Artificial Intelligence can churn through massive amounts of information at high speeds. By applying AI in HR to traditional hiring and selection processes, recruiters can save a significant amount of time when reviewing resumes but will also be able to focus on more important tasks. A recruiter’s valuable time is formerly spent completing many manual processes that are now being handled reliably with AI technologies, which expedites the entire talent acquisition process. AI technologies provide recruiters with the technical tools they need to handle these manual processes efficiently.

Data Management and Critical Analysis  

AI and data management systems work together synergistically. Through AI’s integration with and throughout the data management system, improved database query performance and accuracy can be achieved, as well as resource optimization. 

Inventory Management Tools and Human Resource Management 

Demand forecasting is more challenging than supply forecasting in fulfillment forecasting. Data science is a crucial application for predicting allocation in historical supply and demand since each data set contains uncertainties and anomalies. There will be unexpected fluctuations in supply and demand data, leading to anomalies. Customers’ behaviors in this model should be considered where products are delivered and how and when they are delivered. 

Inventory management solutions can increase store inventory levels by analyzing consumer fulfillment choices and shopping behaviors.

For businesses to meet and exceed customer expectations, it is essential to know where and how much available-to-promise inventory resides. As businesses like Amazon are able to provide guaranteed delivery windows, communicating the estimated arrival time of a product to customers has become increasingly valuable and necessary. A retailer’s ability to simulate and drill into how each calculation was made is essential to improving the accuracy of these models. The business can make better decisions by aligning the business’ priorities with fulfillment decisions, whether cost or time-related. 

Cost-reduction and Increased Efficiency 

Businesses can automate a number of processes using Artificial Intelligence in HR technology, freeing up employees’ time and increasing their productivity. The use of Artificial Intelligence can help you accomplish more in less time at a lower cost by automating repetitive tasks with higher efficiency. 

Customer Service and Human Resource Management 

In addition to improving internal customer service, the HR department can also play a role in improving external customer service. Training and incentive programs are often conducted by HR. Employees who excel at providing good customer service to internal clients may be rewarded with incentive programs if your HR department holds customer service training sessions with customer service incentive programs. The human resources department can promote customer service excellence throughout the company. 

Career Development and Human Capital Management 

The career development process consists of an organization’s support for its employees’ professional growth, particularly when it comes to moving to new positions and projects within the organization. A variety of career guidance services are available, such as coaching, mentoring, learning new skills, networking, and career planning. 

Automation of HR processes 

As a result of HR automation, recurring human resources processes are automated, and document-intensive tasks are streamlined, therefore reducing the time and effort required to handle them. The HR process is significantly improved, and the time it takes to complete it is significantly reduced without compromising quality. 

Availability of HR tools 

HR tools enable companies to manage their HR activities efficiently and effectively on a day-to-day basis. HR processes are time-consuming, cumbersome, and compliance-driven, yet manually executed. HR Tools save HR employees time and money and make it easier for them to manage their employees. In addition to managing recruitment, HR tools also manage exit interviews. A variety of HR software solutions are available that can assist companies with managing vacations, timesheets, and other administrative tasks. Also available is recruiting and performance management software, both of which are strategic HR areas. 

Advanced Candidate Search 

Using the Candidate Search Query functionality, both internal and external users can look up specific candidates or search for talent. There are still a few search options available in the legacy Search Candidates tool. Boolean operators can be used in Candidate Search Query to enhance the keyword search feature. To further improve the search process, attached resumes are included in the information used to find suitable candidates. Candidate Search and search results pages feature a user interface (UI) that is designed to match current trends. 

Analytics Grants Access to More Data 

Employee relations can be improved, hiring bias reduced, attrition management improved, and performance factors identified by adopting analytics in HR 


Human resources are already being impacted by Artificial Intelligence today – it’s not far off. Machine Learning models streamline the HR process from recruiting and onboarding to professional development. 

Using AI in HR can improve productivity, reduce operational costs, and reduce the amount of time spent on repetitive, mundane tasks. Additionally, it can improve employee retention rates by enhancing the employee experience. 

Human resources professionals have been interacting with their teams in vastly different ways, and the use of technology will continue to improve. 

In terms of utilizing AI in the management of human resources, one of the best strategies would be to use AI in HR to analyze all the data gathered while leaving the decision-making processes to the human staff members responsible for handling the decision-making processes.  

It is a crucial recommendation that you examine the areas within HR operations where AI could be helpful before you implement it. Increasing employee productivity and decreasing operational costs can be achieved if the main motivation is to improve the overall employee experience. 

If you want to keep up with the latest Digital HR trends and learn them in detail, UNext Jigsaw is offering a Digital HR analytics course with loads of benefits.  

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