People-centred workplaces are progressively reaping the benefits of integrating AI to elevate the traditional human resource function- streamline processes, proactively add value and enrich the employee experience (EX). As organisations try to manage the complexities of a digital-first, increasingly competitive world, AI offers both strategic advantages and a compelling case for experimentation. According to a 2023 survey by IBM, AI is already impacting the workforce in India, with 56% of surveyed organisations leveraging AI to enhance recruiting and HR functions.
Looking at the employee journey from a hire-to-retire continuum one of the earliest and most significant use cases of integrating AI is its role in the recruitment and onboarding processes. Traditional hiring methods, often impaired by prejudices and inefficiencies, are being replaced with AI-supported tools that boost objectivity and speed. AI algorithms can sift through vast pools of resumes utilising natural language processing and machine learning algorithms to identify top candidates based on predefined criteria without the unfair influence of biases (whether intentional or unconscious) creeping in. Recently, a leading Singaporean bank piloted an AI tool which significantly increased reliability in the hiring process by more accurately matching the candidate’s profiles to the requirements of the role. It even helped to assesses candidates’ fitment with the bank and the organisational values, achieving the twin advantages of accelerating the recruitment timeline as well as promoting diversity and inclusivity. The bank’s virtual recruiter ended up reducing time to hire by 75%, saving up to 40 staff hours each month and resulting in 880+ successful hires across Asia. AI-driven insights can even inform and support future workforce needs, allowing HR to align recruitment and development efforts with the organisation’s strategic goals.
Once the candidate has accepted the offer and prepares to join the company, AI-powered chatbots can transform the onboarding experience. These future-forward tools provide new hires with instant access to information, answering common questions and guiding them through initial processes. Similar to how it’s used to enhance the customer experience, virtual AI assistants can be deployed for real-time support for employees. The result is a more seamless and engaging introduction to the company, fostering a sense of belonging from day one. By offloading these tasks from HR professionals, AI frees them to focus on more strategic activities.
AI’s capabilities truly impress when it comes to generating personalised learning paths and development initiatives that are customised to an employee’s needs and career aspirations. AI systems have the power to parse employees’ performance data, feedback and ratings, identify skill gaps, and recommend targeted training programs, based on their role and goals. Moreover, AI can also track learning progress in real-time, analyse participation rates and optimise difficulty levels and pace for better knowledge retention. AI-based virtual reality and augmented reality technologies are further enhancing experiential learning, empowering employees to practice complex, confidential tasks in safe, simulated environments. This proactive approach to professional growth ensures that employees feel valued and supported in their career paths, leading to a win-win situation of better job performance and higher satisfaction.
What about making sure that high potential and high performing employees are retained? In this scenario, predictive analytics, powered by AI, is a game-changer for HR management. By analysing data on job satisfaction, engagement levels and identifying patterns, AI can forecast future trends and help anticipate potential issues to address problems proactively. Equipped with this foresight, HR can implement retention strategies before valuable talent is lost.
While there are immense applications of AI in HR, certain critical moral considerations must not be overlooked. The use of AI requires transparency, impartiality, accountability, and complete integrity so that both the stakeholders using and benefitting from it can trust the system. Organisations must ensure that AI systems are designed and implemented in ways that uphold ethical standards and respect employee privacy.
Furthermore, it is important to keep the employee at the centre of the design process so that the EX is prioritised over the need to capitalise on a trend. It’s essential to remember that the goal of using AI in HR is not to replace human judgement but to augment it. The quality of data, how well employee insights are understood and empathised with and how intelligently they are applied will be the true differentiator for companies. Looking ahead the future of HR is likely to see even more sophisticated AI applications, from predictive talent acquisition to fully automated performance management systems. As AI continues to evolve, its potential to transform HR functions will only grow, ushering in a new era of technology-driven HR using human-centred design to build workplaces that are both high-performing and deeply fulfilling for employees.
This article is authored by Kishore Poduri, Managing Director, and Country Head – Human Resources DBS Bank India.
As featured in ET Edge
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