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Artificial Intelligence in HR: Human Resources Reinvented

A company’s success depends upon how effectively and efficiently it manages its 3Ts, time, talent, and technology. Given the plethora of jobs today, it is humanely impossible to find the right candidate at the right time. That’s where the third ‘T,’ technology comes to the rescue. Artificial intelligence is one such advanced technology that constantly changes the HR domain. From hunting to onboarding, artificial intelligence is now playing a significant role.

But before we understand how AI is transforming human resource management, let’s first understand why and what is Artificial intelligence in hr or the human resources department. AI refers to the ability of machines to interpret and process information like humans. In HR, AI can not only manage the recruitment process but can also help onboard candidates smoothly.

Why AI in HR?

With the changing dynamics of the business environment, there is a need to manage the organizational workforce. We, as humans, have a limited capacity to do everything, and doing routine tasks might become tedious. This eventually affects the overall productivity and efficiency. That’s where the magic of Artificial Intelligence works the best. Here’s how AI and human resources go hand-in-hand:

24*7 Access

With the 24*7 availability of AI Chatbots, any potential talent can easily understand the procedure and other relevant details about the company or particular topic. The use of conversational AI in human resources promotes connection and relationship building.

Enhances Efficiency

The repetitive task can be shifted from manual mode to automation. This shift gives the workforce more time to concentrate on additional tasks, eventually boosting the overall productivity and efficiency.

Personalized Communications

AI can ensure personalized communication, especially with the newly recruited talent. With AI tools like Talmundo, where the talent can break the ice through a chatbot. 


AI can use real-time data to identify emerging problems when employees raise similar concerns and address them before escalating.

Role of Artificial Intelligence in Transforming Human Resource Management

The role of artificial intelligence in HR functions is endless, as it is constantly changing the HR working dynamics. The following explains how is AI being used in HR and recruitment:

Screening Out Potential Candidates

As soon as any company calls for an application, a large number of applicants start forwarding their application to the respective HR. Here, scanning the resumes manually may overlook the best potential candidates, given the number of applicants. However, artificial intelligence HR software like HireLakeAI can be leveraged to manage the hiring process. From shortlisting the resume of candidates to the final round of interviews, this AI-based solution helps HR in making ideal recruiting decisions.

Creating a Diverse Work Environment

While scanning and shortlisting profiles, HR may unknowingly be biased based on age, gender, etc., making the recruitment process unfair. But AI is trained and programmed to filter out any kind of bias during the screening process, making the procedure fair, unbiased and equal. This emerging role of artificial intelligence in HR functions like screening and finalizing potential candidates helps build a diverse team, leading to a better and more productive work environment.

Building an Interactive Candidate Experience

Usually, it is pretty difficult for HR to communicate with all the candidates. This leads to a bad impression of the company. But AI chatbots are now used to build an interactive candidate experience. 

For example, chatbots can guide the candidate for further process, schedule interviews, etc., ensuring a smooth and interactive recruitment procedure.

Smooth Onboarding

Traditionally, the onboarding process was time-consuming once a candidate was recruited, as the candidate had to manage documentation. However, AI has made this process easier by digitizing and automating documents. They also help properly organize the documents and store them in zip files. Moreover, AI can also track when the hired candidate has gone through these documents and remind them to provide a digital signature.

Application of AI in HR

Hunting Ideal Candidates

Artificial intelligence in HR can help in attracting potential candidates by analyzing the user’s search patterns and advertising companies that are open to recruiting such specific job roles. For example, LinkedIn uses simple AI to target the potential candidate. It attracts them using some recommendation algorithms, that is “related jobs for you” feature. 

Effective Communication

Not having proper communication might lead to a stressful work environment. Therefore, a better communication process is important to have clarity on the job responsibilities. Using AI solutions, the HR department can streamline proper and productive communication in the company, efficiently comprehending texts and voice messages and detecting their tone. 

Moreover, this AI solution in HR can highlight the present tone so that the person communicates professionally, without any bias, and in a non-offensive tone.

Data Collection

There is more to a candidate than what his resume displays. Therefore, it is equally important to dive more into the candidate’s profile by digging the social media, past company reviews, etc., to look out for any scope of concern. Artificial Intelligence tools provide efficient data aggregation techniques to collect information. 

For example, eBay and IBM use AI-powered data aggregation to extract data from a variety of sources, store them and analyze them to conclude the work experience and market value of the potential candidate.

Talent Management

Hiring a candidate through resume shortlisting and interviews is just one of the many ways a company acquires a candidate. However, the candidate is more likely to join a company if he sees the potential for growth and advancement in his career by working in the company. Artificial intelligence for HR can benefit here by streamlining the process of connecting him/her to someone in the company who already has proficiency in that skill. 

Why Should You Opt For AI-Based HR Solutions?

Enhances Productivity 

Managing the human workforce of the company can be a nerve-wracking task. But using AI-based solutions in HR, the HR team can easily plan out a proper workflow from start to end rather than shifting a task to a particular day. This will eventually lead to a faster process without compromising on the quality. 

For instance, Arya, an AI-based candidate sourcing tool, can source potential talent from various channels. On the other hand, HackerRank, an AI-based tool for candidate assessment, can help evaluate the applicant at every stage.

AI Can Be the Face of the Company

Artificial intelligence in HR management can help in managing many tedious tasks, not only for HR but also for the employees. This will have a positive impact on their minds, and that will spread word of mouth for the company. Therefore, boosting the goodwill of the company.

For example, Calendly is an AI-based software solution used in HR recruitment to sort suitable interview slots and important upcoming events and remind the candidate from time to time.

Saves Time and Expenses

Obtaining precise results is one thing, but obtaining them in a cost-efficient manner is another. HirelakeAI is an AI-based solution that effectively analyzes the CVs matching with JDs with a big list of resumes, saving time and boosting accuracy simultaneously. Moreover, the free demo mode without even logging in makes HirelakeAI a top choice for brands planning to use AI in HR.

Recruiting the Best Talents

HR has to conduct a variety of processes such as candidate sourcing, candidate screening, group discussions, interviews, etc. Artificial intelligence in HR recruitment helps in making the process easier by scanning through thousands of resumes, analyzing the skill set possessed by the candidate, and corresponding them with the skills required for the applied job. Mya, Olivia, and Jobpal are some well-known AI assistants that carry out conversations with the candidates and help in screening the best ones among them.

How Do You Implement AI in HR

Identify Problems

Companies need to identify problems for which they want to use AI. A well-defined problem statement can help in gaining insights into what skills, alternatives, and investments will be required to resolve the problem. Moreover, it should also highlight the Return of Investment if any investment is made considering the proposal.


The company must carefully analyze all the possible solutions to the issue by identifying their pros and cons. It is essential to check whether any AI tools for HR are available in the market or the company needs to build its own tools. If there is no background on AI, it is better to buy AI-based developed solutions. However, if the company is building its own AI tools, it is important to brainstorm ideas with the people who will actually consume it since they know what is lacking and what solution would be ideal. Also, it is ideal to call AI experts for custom solutions and strategize on how to make an AI-driven enterprise.

Build The Team

Once the problem is identified and the proposed solution is finalized, the next step is to build the team for execution and implementation. The team must have diversity, such as one with an understanding of market trends, one working on the problem statement, one with technical and engineering background having command of programming, AI, database, one with HR domain to resource everything, and finally, a member with design and presentation skills who can teach the developed technology to employees having little or no knowledge about the AI tool. These members form the core team for developing AI-based HR solutions in any industry.


Once the AI-based solution is developed, deploying it and implementing it in the company requires a different set of skills. Although analytical skills are needed, such as forming good assumptions, knowing the limitations of the developed product, what the AI solution can do, etc., but not technical. However, the implementers need to have a start-to-end knowledge of the solution to handle issues, if any, than just merely turning the AI solution on.


Once the solution is ready, scaling it to the entire organization is the next step. Start with the basic function; once it gives the desired result, then start with the main function. To validate the success, keep track of the ROI generated once it was developed.

Challenges of AI in HR

Well, as much as AI has proved itself to be a useful asset for HRs, they have its own limitations. Here is why AI cannot completely replace humans:

  • Artificial Intelligence can not read emotions and how different personalities can affect teams. As a result, it doesn’t understand the fundamentals of teamwork which may affect the dynamics of the work environment.
  • Most of the AI tools used in HR are still in their seed stage, which gives rise to numerous drawbacks, inconsistencies, and flaws like programming bugs, sensitivity to outliers, etc. Moreover, they always need vast and diverse data to recognize patterns.
  • AI may even reject deserving candidates if the candidate has used a different font, unusual page orientation, or anything else which AI may consider as an unusual pattern. It might conclude they don’t have the required skills and reject them, even if they would have been the best fit for the required role. This is one of the biggest challenges of AI in HR.
  • Regular maintenance is required for AI systems to function properly. Updating it from time to time is also necessary, which sometimes requires a lot of time and resources. 
  • Artificial intelligence in HR recognizes patterns based on its data, and the data is nothing but a recruitment database of past years. If the database has errors, AI will show wrong results.


HRs are the backbone of any company and play a crucial role in keeping the business upward and running. So, welcoming innovative AI technologies can change the work dynamics entirely. However, AI can never completely replace humans. Therefore, artificial intelligence and HR will walk hand in hand, as technology takes care of repetitive tasks while humans focus on areas that need more than just a usual consideration. So, if you are looking for personalized AI solutions for your recruitment process, book a free consultation with AI experts and get started with the right strategy.

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