How to use AI in HR

Human Resources teams have quite a handful of responsibilities to deal with on a daily basis.

Most of their day is occupied by tasks such as payroll and compliance, recruitment, and employee engagement. Many of these tasks are repetitive and time-consuming, thus limiting HR professionals’ ability to focus on strategic priorities that drive business growth.

With the help of AI-driven tools, these tedious HR processes, to some degree, can be delegated to technology. When implemented correctly, AI automation can improve efficiency, accuracy, and consistency of repetitive tasks, and give HR professionals more time to focus on people, planning, and performance.

Automation of HR processes is not just about saving time. By using AI-powered automation HR teams gain access to timely data and insights allowing them to make well-informed decisions in response to shifting economic conditions, evolving technologies, and changes in the workforce.

Our research team dove deep into the best ways to implement AI to maximize human resources professional's productivity, key HR processes that can be automated, tools that allow automation, and how organizations can benefit from adopting a more efficient HR approach. We've collected the data and did all the research so you can enjoy hard facts and vivid examples of AI automation driving businesses forward.

Please, fell free to download the full report below, and tell us what you think.

Artificial intelligence (AI) automation in the field of human resources means using sophisticated technologies like machine learning to optimize HR operations. AI-powered tools automate repetitive tasks, analyze large amounts of data, find patterns, create content, and even simulate human interactions. These automatic enhancements not only make HR departments more efficient but also help professionals focus on strategic and people-centered work.

AI is gradually transforming HR from an administrative role into a more strategic one. AI tools can help with recruitment, workforce planning, performance management, and overall employee experience. At the same time, these automations push HR teams to build a culture that can adapt to rapid changes in technology and the workplace. 

There are several ways AI will impact HR in the near future:

• Making everyday HR processes faster and more data-driven.

• Encouraging cultural shifts that help employees embrace new ways of working.

Companies that invest in better employee experiences often perform better financially, and AI can play a key role in creating those experiences. With new technology automating routine tasks, and using workforce data wisely HR can yet become a driver of innovation.

HR teams use different AI technologies, often combining them to handle tasks more effectively. For example, an AI tool that helps employees with leave requests might use natural language processing to understand the question, machine learning to check past patterns, generative AI to draft a response, and agentic AI to update the HR system automatically. The most common AI technologies applied in HR include:

• AI agents 

AI agents are systems that can work on their own with little human input. They remember past actions, learn over time, and improve their performance. In HR, they can source candidates, manage benefits enrollment, answer policy questions, or track compliance changes.

• AI assistants 

AI assistants are more advanced than chatbots, they use natural language processing to help employees with questions and HR processes. These chatbots remember user preferences and past interactions, making them more effective over time. Common uses include onboarding support, answering routine queries, and guiding employees through paperwork.

• Automation and RPA 

Automation and robotic process automation (RPA) handle repetitive tasks like payroll processing, data entry, and filtering job applicants. While not fully AI, they work alongside AI tools to simplify HR operations.

• Generative AI 

Generative AI creates new content from existing data. In HR, it helps write job descriptions, interview questions, training materials, company policies, or employee communications, inevitably saving significant time for HR professionals.

• Natural language processing (NLP) 

NLP helps systems understand and process human language. Among the capabilities are an ability to analyze surveys, conduct performance reviews or resumes, as well as internal communications to identify useful insights and trends.

• Predictive analytics 

Predictive analytics use past data to forecast future needs. Human resources specialists usually apply this tool for workforce planning, salary reviews, performance trends, and training needs.

Automation performs best when used for processes that follow clear rules or repeat regularly. Below are common HR functions that could benefit from AI-powered automation:

Payroll

AI tools automate calculations using real-time data on hours worked, expenses, benefits, and compensation changes, reducing manual errors and saving time. Automated payroll software with the help of artificial intelligence calculates deductions, checks for errors, and processes payments based on employee data, making sure employees are timely and accurately compensated.

Onboarding 

Automated onboarding and offboarding processes simplify data collection, training assignments, document completion, exit interviews, and compliance checks. HR Information Systems (HRIS) centralize employee data, eliminate duplicate entry, manage documents, assign workflows, and schedule automated check-ins.

Timekeeping 

A good way to streamline timecard submissions, verification, as well as PTO and time-off requests is implementing automation of these processes. Time and attendance calculation systems integrate with payroll to record hours worked, approve time-off, create schedules, and allocate labor accurately.

Performance management

Making human resources professional’s work simpler, AI-powered performance management automates feedback collection, documentation, and performance evaluations. Automation tools track goals, evaluations, and feedback, while keeping performance data consistent and accessible.

Recruiting

HR’s little helpers - AI tools speed up sourcing, screening, scheduling, and candidate communication. Applicant Tracking Systems (ATS) automate resume screening, interview scheduling, job board postings, candidate communication, and workflow management.

Background checks

Background checks that take more than three days are a thing of the past, with automated background checks that provide faster, more accurate screening and status updates. Automated tools streamline screening, data verification, and communication while ensuring compliance with regulations.

Compliance and reporting

It’s better to be safe than sorry. Automated compliance and reporting tracks changing laws and automates reporting to reduce risk. Human Capital Management software maintains a single system of record, provides real-time compliance updates, and generates legally required reports automatically.

Employee engagement 

Keep your employees updated and engaged with automated employee engagement, which offers self-service tools, feedback collection, recognition systems, and surveys. Survey tools, recognition features, and LMS platforms automate engagement activities and learning programs to assign, track, and certify training.

• HR is falling behind

Once the main goals of HR are defined, the next step is to check how well the team is performing. If there are delays or inefficiencies in hiring, onboarding, payroll, or reporting, these are clear signs that the current process is not working and automation may be needed.

• Rapid company growth

When an organization is growing quickly and bringing in new employees faster than HR can manage, automation can help. Too many job requisitions, slow training programs, or delayed onboarding are signals that manual processes can no longer keep up and automation should be considered.

• Limited budget

If hiring additional HR staff is not possible, automation can take over manual tasks and help the existing team manage the workload. This not only reduces the risk of burnout but also ensures that the budget is used more efficiently, keeping HR focused on people-related work.

• Risk of noncompliance

If required records and documentation are not being properly maintained, the company may be at risk of audits or penalties. In this case, a more reliable and automated system can help ensure compliance and reduce potential risks.

For AI to work well in HR, companies need to prepare the right foundation. Key steps include:

• Set a clear vision and goals

Define how AI will support HR and business needs. Set measurable targets, like reducing hiring time, improving employee satisfaction, or increasing retention. Doing so will keep projects focused on real results instead of using AI just for the sake of it.

• Prepare your data 

AI is only as good as the data it uses. HR team should review current data, fix gaps, clean records, and remove bias. Strong data governance is essential for accuracy, privacy, storage, and access. Breaking down data silos into unified sources makes AI far more effective.

• Strengthen technology systems 

HR systems must be able to support AI securely and at scale. This includes checking processing power, storage, integrations, and APIs. Security measures like encryption and access controls are crucial to protect employee data.

• Upskill the HR team 

HR professionals need training in AI basics, data literacy, and how to interpret AI insights. Change management, governance, and ethics are also integral to guiding the organization through AI adoption.

• Focus on culture and change management 

AI adoption works best when employees see it as a tool that helps, not a threat. Leaders should clearly communicate the benefits, promote continuous learning, and support staff during the transition.

• Start small, then scale 

Pilot projects let HR test AI in limited areas, measure results, and learn what works. Once pilots succeed, expand gradually with a balance of growth, quality, and change management.

And if you'd like to know more about how AI can make your HR a business-driving department, download the full report below.