Artificial intelligence (AI) has made significant technological strides in the past few years. Its applications are becoming increasingly popular due to the capacity to learn from data and automate manual and repetitive tasks. Because of AI's broad applicability in many industries — from automotive to retail to healthcare — it's no surprise that the AI market is projected to grow to $177.31 billion by 2030. That’s a CAGR of 47.2% between 2020 to 2030.

However, there is a widespread notion that the growth of AI and its broadening uses threatens opportunities for human workers. The opposite is actually true: rather than robots coming to take our jobs, AI is making certain aspects of work much more manageable. One particular area AI most positively impacts is HR. Here are some areas in HR that AI is changing for the better:

The Recruitment Process:

Employers can receive up to thousands of applications when they send out a call for candidates. Sorting through them manually can be tiring, resulting in faulty screening processes affected by human error. Due to fatigue, frustration, and human imitations, employers may leave capable candidates out. Modern applicant tracking systems use AI and its subset, machine learning, to manage tasks like job postings and screening applications and resumes. Such software can note details that human HR professionals may accidentally skip over. When these tracking systems are done with the screening process, a company's HR department is left with a list of the most promising candidates. Ultimately, this means that HR professionals can spend more time effectively deciding which qualified candidates would suit their company best.

Hiring Bias:

Hiring biases are when employers unconsciously hold opinions based on an interviewer’s demographic information. These biased impressions can be a significant flaw in hiring when candidates’ qualifications are unintentionally overlooked because of their background. As such, many companies attempt to reduce hiring biases through various initiatives. These include eliminating personal details about race, gender, or age in resumes, or providing skill tests and standardized interview questions that focus on qualifications and skills. But biases can persist as long as there is a human element in these processes. AI can overcome hiring biases by analyzing data in ways humans can’t. By programming AI recruitment software to ignore specific demographic data, like age, race, and gender, it can focus only on skills and experience. This can result in HR professionals building a more diverse workforce of the most qualified employees.

Employee Experience and Engagement:

AI can be integral to managing employee benefits better, resulting in greater employee experience and engagement. For example, chatbots can help facilitate any communication related to internal policies or filing complaints. They provide immediate solutions, thereby responding to employee concerns automatically. AI-driven HR software is programmed to track employee satisfaction and well-being based on their consistency at work. By analyzing data from an employee’s devices, such as vocabulary, change of tone, or work hours, they can spot outliers and determine whether a worker is not at their best. This can alert managers to offer aid or counsel to employees who need it.

Employee Recommendations and Feedback 

AI can facilitate continuous growth among teams and their members by personalizing recommendations and feedback. AI-based HR ecosystems use employee monitoring software to track performance, output metrics, employee engagement, and survey data. This allows managers to craft a personalized plan for improvement strategies that can improve the capabilities and efficiency of each employee. As a result, they can foster an atmosphere of continuous growth and learning, making teams more competitive in their field.

Although a relatively recent technology, AI is already making significant strides in business. In changing the landscape of HR, AI can significantly improve businesses in every industry.