Artificial intelligence is rapidly transforming human resources, with leaders and organizations at various stages of adoption and readiness.

We regularly work and speak with HR leaders from companies of various sizes, representing all industries, and we find a wide range of experience using AI. Some are still pacing along the outskirts of AI, looking for a way to experiment and grow more comfortable. Others are on the opposite end, not only using AI for their individual role, but helping oversee the implementation of AI in an organization-wide way. 

While AI in HR will continue to develop, HR leaders need guidance today. That’s why we have created this guide to AI in HR. 

Let’s start with where we are today.

The current state of AI in HR

While some companies are still exploring how to get started with AI, others have already integrated it into core HR processes. 

Currently, companies are leveraging AI for HR tasks like:

• Streamlining recruitment by screening resumes and sourcing candidates
• Enhancing onboarding through AI-powered chatbots and personalized learning
• Analyzing employee data and surveys to provide insights on engagement and retention
• Automating administrative tasks like scheduling and document processing

The key focus for many is using AI to reduce administrative burdens and free up HR teams to be more strategic. This shows at the individual level and the organizational level.  

AI for your individual role

Many HR professionals are using AI tools individually to boost their own productivity – for example, summarizing meeting notes (we use Otter AI at Inspire for this purpose), creating presentations, or analyzing survey data. At a recent Inspire HR Salon, one CHRO shared how using AI tools allowed her to summarize employee satisfaction responses “in a matter of minutes” when it used to weigh her down for weeks.  

If you are not yet using AI tools, now is the time to experiment. Looking for a simple entry point? The next time you’re developing a presentation, try using a tool like Beautiful.ai or Prezi to pull your outline into a draft set of slides that you can work from.

AI at the organizational level

At the organizational level, some companies are implementing AI more systematically into HR workflows and decision-making. Tools like Visier allow HR leaders to ask questions such as: how do my turnover rates for women compare with turnover rates for men? And, how is this impacted by changes in compensation? AI is already helping organizations turn their talent data into actionable insights.

Examples: how companies are using AI in HR

Global tech think tank Identity Review shares some practical examples of ways multiple companies are using AI in HR at their organization. Here are just a few that stand out: 

IBM uses Watson’s predictive analytics to identify patterns in employee behaviors, alerting HR about potential resignations before they occur.

General Electric (GE) employs AI to identify areas where current employees need further development or training. 

Starbucks uses AI to forecast staffing needs based on factors like location, time of year, and local employment rates. This has led to more accurate scheduling, reducing costs and preventing over or understaffing. 

Microsoft uses its MyAnalytics tool to leverage AI to offer employees personalized insights into their work habits, encouraging self-improvement and boosting overall productivity.

You probably don’t have this technology available at your fingertips today, and that’s ok. Take these use cases (and we can help you brainstorm plenty more) and start the conversation around functions you’d like to streamline, insights you’d like to develop, and capabilities you used to only dream of. Having these conversations is the perfect place to start. 

The future of AI in HR: Opportunities and Risks

Looking ahead, AI is poised to create even more transformative changes in HR and this brings a host of opportunities, but also risks. 

You can listen to Amy Liu Abel, Ian O’Keefe and Rafael Perez share their experience, outlook and insights in this conversation from our Inspire Live series. A few highlights from the discussion include these calls to action for HR leaders:

• Focus on helping leaders and managers become more effective in facilitating conversations around AI: both showing optimism and being open about vulnerabilities. Leadership coaching is crucial.
• Strengthen your organization’s ability to harness the power of transformation by establishing principles to guide you. For example: AI will not make decisions, it will inform decisions and our expectation for leaders is not to know everything, but to learn everything.
• Build cross-functional AI Councils, whose primary charge is to learn (not produce), to help demystify AI and reduce fear.

Opportunities:

It can feel impossible to wrap our arms around the opportunities for AI in HR. But there are current and future opportunities that have us the most excited, like:

• AI promises to dramatically improve efficiency for HR leaders, with tasks that once took weeks, now taking just minutes
• More data-driven and inclusive decision-making in areas like hiring and promotions. This is only possible when both the team and the AI system are properly trained ahead of time. 
• Enhanced employee experiences through personalized learning and career pathing
• Ability for HR to take on a more strategic role by offloading administrative work

Risks and challenges:

It’s imprudent and impossible to ignore the risks associated with AI in HR. These are the top risks where leading experts are focusing:

• Potential job displacement and the need to reskill/upskill the workforce 
• Data privacy and security concerns, especially with sensitive employee information
• Risk of bias if AI systems are not carefully designed and monitored
• Change management challenges as AI disrupts traditional HR processes and roles
• Regulatory uncertainty around issues like copyright law. 

You can monitor proposed, failed, and enacted AI regulatory bills state-by-state across the US in this AI Legislation Snapshot by Global law firm BCLP. They also maintain a EU and UK tracker. 

Your roadmap to AI in HR

More change is coming, but change is already here. To navigate this transformation successfully, HR leaders need to take these six steps:

6 steps for HR leaders to take today

1. Assess organizational readiness and risk tolerance for AI adoption
2. Identify high-impact use cases aligned with business priorities
3. Ensure proper governance and oversight of AI systems
4. Upskill HR teams and employees on working alongside AI
5. Monitor markets farther ahead in AI implementation for a look into the future. For example, European regulations can forecast changes American companies could see in the future. 
6. Lead change management efforts as AI transforms workflows

Inspire can help you navigate AI in HR

At Inspire HR, we understand that adopting AI can feel overwhelming—we hear it everyday from HR leaders. We’re here to help you create your strategic roadmap for integrating AI into HR at your company. These are just some of the ways our team of Experts can help:

Assess your organization’s readiness for AI. We meet you where you are—whether you’re an eager adopter of AI, or worried that you’re already falling behind.  

Identify areas within HR where you can implement or experiment with AI. This is the fun part! From tangible tasks to blue-sky ideation sessions, we’ll help you brainstorm and get excited about putting AI to work for you. 

Design a protocol including who to involve, how to communicate and how to measure success. We’ll get you started on the right foot.

Share use cases to learn from others. Looking for inspiration? We have our finger on the pulse of how other companies are using AI in HR and love to use this as inspiration for leaders like you.  

Connect you to vetted AI developers and leaders in the space. We’re always learning from our brilliant partners and colleagues in tech. We’ll gladly connect you to the people we trust.

Avoid biases by developing the appropriate human-led interventions and oversight. 

Coach and upskill your leaders and managers on the softer skills needed to assess AI-driven output, manage change, and more.

Our goal is to help you leverage AI to make your HR function more strategic and impactful. As Ian O’Keefe said in our panel discussion:

“AI and Gen AI have the potential to be the world’s best copilot for you, and augment—not replace—what you’re doing.”  – Ian O’Keefe

Let Inspire HR help you identify the copilot you need as your guide in navigating this exciting but complex landscape. Contact us today to get started.