The future of HR tech: How AI is transforming human resources

Reportedly, AI-powered tools such as virtual assistants and Chat GPT are gaining traction in the HR industry.

Amazon partners with IIT Bombay; introduces AI-ML Initiative
Amazon partners with IIT Bombay; introduces AI-ML Initiative.

By Ashish Pinto

The Human Resources landscape has undergone significant changes in recent years due to the challenges that HR professionals face across different industries. As organizations look to manage their workforces in the aftermath of the pandemic and during a financially turbulent decade HR leaders have had to evolve and deliver on various aspects of the Employee Lifecycle creatively and ingeniously to keep the organization competetive in the business environment. With the help of emerging technologies such as artificial intelligence (AI), HR departments can streamline onboarding, training, and managing processes for a more efficient and effective approach.

Unlike automation, which relies primarily upon cause-and-effect, true AI systems can interpret data and leverage it to make decisions, learn from previous mistakes, and strategically solve problems.  Predictive and Prescriptive Analytics are prime examples of how AI technology can help organizations maximize efficiency and growth.

Talent acquisition and onboarding are crucial aspects of HR management. By using AI, HR teams can predict the best candidates for a job and build relationships that convert those candidates into employees. AI can help scale and manage a significant portion of prediction work by alerting the right people with the right skill set for the available jobs. Additionally, HR data can be used to predict a candidate’s likelihood of accepting a job offer and thereafter their performance outcomes with fair degree of accuracy and also estimate their expected tenure.

For instance, Pymetrics is an AI and ML tool for HR that harnesses the power of neuroscience-based games to assess and evaluate candidates and match them with relevant competencies of a job in your organization. Since its inception, numerous companies have utilized its algorithms to streamline talent acquisition, training, and development.

DreamTeam is another platform for HR analytics that focuses mostly on recruiting. It allows users to build personalized HR dashboards using data supplied from your applicant tracking system (ATS).

AI can also be used for performance management, which helps store employee data in a single place. This information can be used by leaders and stakeholders to evaluate employee performance and share it with other team members. Real-time analysis and performance reviews conducted using AI can help improve overall employee performance and morale.


Paycor is one of the payroll tools recommended during the performance management process to build on employee retention initiatives. It is an HR analytics application that collects information about your payroll, attendance, and employee benefits to give you insights into labor market trends. These patterns might help us determine a company’s training and development needs, among other HR-related decisions.

Employee engagement and training are other essential aspects of HR management that can be enhanced with AI. Organizations can use AI-powered data analytics or predictive analytics to develop personalized training programs that align with different employees’ learning patterns and needs. This helps achieve a better synergy between the training programs and employee engagement.

Leapsome, a flexible HR analytics platform ideal for businesses of all sizes, HR departments can use it to monitor employee development, engagement, performance, and more.

Automation of repetitive tasks in HR with the use of technologies such as machine learning (ML) and AI can help HR teams focus on more critical tasks such as finding better talent and engaging them. Automating repetitive tasks eliminates paperwork and stationery, reducing operational costs.

Suppose your business wants utilizable reports on employee performance and satisfaction indicators. In that case, you can switch to intelliHR, an interface for HR automation software. It provides analytics tools so HR professionals can coordinate their work with the company’s strategic business goals.

Virtual assistants and chatbots  like Chat GPT are other AI-powered tools that are gaining traction in the HR industry. HR chatbots are being used as virtual HR help desks, with employees progressively using them to get answers to routine queries. AI-powered virtual assistants can handle a range of HR functions, including improving employee engagement, generating insights on talent metrics, and managing process workflows.

In conclusion, the use of HR tech in organizations is inevitable, given its ability to transform significant HR functions at a fast pace. Predictive analytics forecast what might happen in the future based on current and historical data.  Prescriptive analytics take this, one step further and suggests various ways to solve the problem — and show the potential implications of each option. This would aid HR Business Leaders to seek creative solutions ahead of time. HR departments need to assess and comprehend the impact of technology to help organizations operate at peak productivity throughout the financial year. I am confident that with the help of AI and other emerging technologies, HR management can evolve to meet the challenges of the future.

The author is chief human resources officer, Nesco Limited

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First published on: 26-03-2023 at 16:00 IST