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Pooja Patil

In the mid-20th century, researchers started exploring the idea of creating machines that could mimic human intelligence. Since the earliest times, philosophers and scientists have dedicated their efforts to unravel the complexities of human intelligence and reasoning. As a result, we witnessed tremendous advancements in areas like space travel and ocean exploration. And then, the techies came up with the greatest of all innovations - Artificial Intelligence (AI), a model inspired by human intelligence.

Gradually transitioning from the realm of science fiction to practical applications in our everyday lives, AI carried the potential to revolutionize various aspects of human existence. Recognizing its transformative capabilities, entrepreneurs emerged as early adopters and champions of AI across diverse industries. The field of AI has since evolved and has significantly impacted various aspects of human resources. And consequently, human resources was established as one such area where human and machine intelligence convergence exhibited eminent potential.

50% of HR professionals say AI can transform HR.

The AI in HR market is growing at a CAGR of 35.26%. It is estimated to reach USD 17.61 Bn in 2027.

This synergy is driving significant transformations within HR practices, including recruitment, onboarding, assessment, and management. It is no surprise that a substantial number of HR professionals recognize the potential of AI to revolutionize critical HR responsibilities. In a nutshell, Artificial Intelligence (AI) is no longer just a buzzword; it has become an essential part of our lives, influencing every facet of HR practices in ways we could only dream of a few years back. Let's dive deep into how AI can improve HR operations and discover 10 AI applications transforming HR operations.

How can AI improve HR operations?

As we all know, talent acquisition is a critical function within HR departments. But the question is: how can we guarantee that we genuinely acquire "talent"? What happens when we end up hiring individuals who may possess charm and personality but fail to meet the initial promise or desired skill sets? Unfortunately, HR departments, consisting of fallible humans, are susceptible to human biases. However, AI technology offers a potential solution by emphasizing the analytical processing of vast amounts of data, surpassing individual observations, and streamlining the talent acquisition process.

Over 60% of people say their organization currently uses AI for talent management.

Moreover, 92% of HR managers plan on using AI to acquire new talent.

The human resources landscape is undergoing a significant transformation due to technology, particularly AI. The AI technology is impassable to stereotypes and the impact an applicant's race, gender, or ethnicity may have on employee screening outcomes. Through AI software, relevant interview questions can be designed that entirely disregard an individual's background and focus solely on their professional competence for a specific job.

68% of HR leaders say incorporating AI in recruitment will handle unintentional bias.

In addition to mitigating human bias in candidate screening, AI significantly benefits HR departments by alleviating the burden of sifting through vast amounts of data found in candidate resumes, social media profiles, reference letters, and other sources. This process ranks among the most time-consuming tasks faced by HR professionals, who often find themselves compelled to take shortcuts to meet their deadlines. While it is clear that AI can revolutionize HR operations in numerous ways, let's discover a few applications of AI that can help you reinvent your HR operations.

10 AI applications reinventing HR operations

  • Administrative Work

    Time-consuming administrative tasks take up about 73.2% of HR's time.

    HR professionals deal with tedious and repetitive tasks daily, driving lower productivity and efficiency. AI can automate numerous manual tasks, enabling HRs to focus on other value-added initiatives. For instance, automating time-consuming administrative tasks, such as tracking employees' status, scheduling, managing payroll, surfing through more extensive sets of employee data, and more, gives HR professionals the time to focus on crucial aspects of organizational growth.

    45% of HR people agree that AI in HR drives business impact and boosts a company's scalability.

  • Recruitment Intelligence

    49% of HR leaders claim that AI in recruitment will benefit the IT sector.

    AI has substantially enhanced recruitment and talent acquisition, emerging as a valuable tool for HR professionals. In addition, introducing AI technology has reduced the time dedicated to recruiting new employees by automating manual tasks.

    44% say that AI will free up recruiters' time.

    By leveraging AI, you can streamline the recruitment process by analyzing job descriptions, resumes, and job applications, enabling the identification of suitable candidates without bias. Additionally, AI-powered recruitment tools can aid in candidate screening and simplify the scheduling of interviews.

  • Onboarding Support

    The first day of an employee's tenure with the organization is always special and equally challenging. Why is it so? Many HR teams don't even have a defined onboarding procedure, and those having one in place often fail to adhere to it.

    76% of HR leaders claim that employee onboarding practices at their organization are underutilized.

    While 36% blame insufficient technology for their inability to better organize and automate onboarding programs.

    HRs can use AI tools to efficiently share onboarding information with new employees and streamline the overall process. This usually includes sharing organizational and employment information, such as regulations, job descriptions, group member information, work assignments, employee handbooks, and so on. In addition, chatbots and virtual assistants can direct new employees through the onboarding process. AI can also aid in personalizing the experience for each individual, ultimately resulting in enhanced employee retention.

  • Payroll Automation

    30% of organizations say they'd consider moving to AI for a better user experience.

    AI-powered payroll processing can automate time-consuming and repetitive tasks, such as payroll calculation and data entry. This saves time and eliminates the risk of human errors. Moreover, AI can empower HR professionals to identify the most attractive and adequate employee compensation and benefits packages. This can help enhance employee retention and engagement, ultimately skyrocketing business growth.

  • Learning & Development

    Learning and Development programs will only grow in the coming future as organizations battle to retain talent. AI can help identify training needs, deliver intelligent content, assist in actual training, and perform assessments. With the assistance of AI tools, you can provide your employees with more growth opportunities.

  • Employee Engagement

    AI helps analyze employee behavior, sentiments, feedback, and engagement data. This further aids in identifying trends, opportunities, and areas of improvement for rewards and recognition. The algorithm can scan tens of thousands of remarks, identify patterns, perform sentiment analysis with the help of natural language processing, and provide insights. However, employing sufficient security and privacy protocols while implementing this functionality is advised to avoid future disputes.

  • Performance Management

    AI helps HR professionals track employee performance, identify areas of improvement, and provide feedback and coaching. AI-powered tools evaluate employee performance by analyzing attendance, productivity, and quality data. This results in improved employee engagement and productivity.

  • Predictive Analytics

    AI in HR empowers them to solve problems at an earlier stage, which can further drive more informed decisions influencing both employee and organizational success. In addition, AI-powered tools can analyze larger data sets to determine trends and portend future outcomes, such as absenteeism and employee turnover. This helps HR professionals take proactive steps and address potential issues.

  • Employee Benefits

    HR professionals can use AI to decide remuneration based on several parameters, such as the market price for specific skill sets, performance, and the demand for a particular expertise. In addition, employee benefits are crucial to retaining the best talent. AI enables HRs to analyze employee data and create personalized benefits plans, optimize benefit utilization, assist employees in benefits selection, and detect benefit misuse.

  • Compliance Monitoring

    Organizations worldwide have to adhere to numerous regulations and laws to survive in the modern business world. With countless geographic locations and employees situated worldwide, it becomes overwhelming for businesses to manage compliance. AI helps monitor compliance requirements and regulations, such as labor or tax laws. This helps HRs ensure that HR operations and policies are up-to-date and aligned with legal necessities.


In today's ever-evolving business landscape, organizations strive to identify ways to attract, recruit, onboard, engage, and retain their essential assets - the talent that brings enterprise success. However, incorporating AI tools in business processes is still not a feasible option for many organizations. And this is where outsourcing comes into the picture. Exela HR Solutions is a market leader in delivering HR outsourcing services and helping organizations streamline and expedite their HR operations. We at Exela HR Solutions employ the latest technologies and tools to provide our clients with a smooth and hassle-free experience. Talk to our experts now to discuss your specific HR requirements. Get started with Exela HR Solutions today and optimize your HR workflows!

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

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