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How Artificial Intelligence is Benefiting Human Resources
28th November 2018
Artificial Intelligence in HRM

For any organization, with an even moderately large workforce, Human Resource Management (HRM) includes numerous time-consuming tasks that are not only repetitive but require insight and attention to the specifics of each individual record. Most importantly, these functions need to be performed with an extremely high degree of accuracy in outcome. Artificial Intelligence (AI) driven automation presents the perfect solution for HRM functionality that is accurate, fast and able to handle high volumes of data on an ongoing basis and – as a departure from previous generations of technology – delivers actionable insights to enhance talent identification, retention and engagement.

HRM has already been enhanced by IT technologies for some decades now. Computers and computing have empowered HRM by keeping detailed accurate records, updating and processing employee data, delivering training and providing platforms for managing benefits. The arrival of AI and machine learning is now set to deepen this relationship – indeed redefine it – to a completely unprecedented extent. 66% of the 6000 CEOs surveyed, as part of a 2017 IBM survey, believe that AI will drive significant value in HR. 54% of HR executives surveyed in the same study believe that AI will alter key roles and functionality in the HR domain.

Microsoft Dynamics 365 for Talent uses AI and Machine Learning to deliver accurate and up to date records while automating several employee-oriented processes. The suite is an effective solution from hire to retire, helping to manage benefits and payroll, compliance and functional training, performance reviews, and employee management – among others. It creates and administers a comprehensive framework for human resource management that can streamline any organization’s day to day operations.

The benefits and functional strengths of AI enabled HRM processes

Taking the automation of repetitive tasks and the accuracy of records to a whole new level of competency is a low hanging fruit that AI can deliver for your HR department. HR operations that most dramatically affect the performance of an enterprise are often far more specific and intricate. It is in such tasks that AI truly shines. Here are some of the benefits that AI is already delivering for cutting edge HRM teams all around the world:

  • Hiring and Onboarding. Cognitive solutions can handle exponentially more resumes to find the perfect set of candidates for an interview. They can assess and shortlist a vast talent pool – across parameters such as experience, values, skills and performance – to perfectly match your organization’s requirements. Having selected your perfect candidates, a well-crafted orientation program is a must – studies show that this can increase retention, for a minimum of three years, by as much as 69%.
  • Talent Retention. Almost 60% of companies surveyed in a recent study experience talent retention issues. This is an unacceptable drain on company resources and constitutes a highly costly loss of painstakingly created value. AI can monitor several tangible – and even somewhat intangible – parameters, to alter this scenario. From identifying employees who need to be rewarded through raises and bonuses, to monitoring work-life balance, AI can help address several of the key reasons why talent becomes dissatisfied with their current job and work environment.
  • Training and Performance Analysis. Technological and process changes are a constant ongoing demand that a modern organization needs to address. AI not only helps HR departments create and coordinate training programs for all employee teams, it can also optimize the process by taking individual employee requirements, schedules and preferences into account. In terms of performance analysis, AI helps to identify and elaborate on concrete objectives as well as the individual tasks that can help realize them. Not only does this provide very elaborate oversight, it also helps individual employees track and assess their progress. Apart from positively impacting productivity metrics, this approach has been shown to increase employee engagement tremendously.
  • HR Chatbots. One of the most effective solutions, that is helping redefine employee engagement and enhance several key HRM functions, is the use of Chatbots. HR chatbots reinforce relationships across an organization – and that of the employee to the organization itself – while positively impacting workforce engagement. AI and Machine learning chatbots are a huge asset in customizing data relating to employees on an ongoing basis. They are further characterized by sheer ease of accessibility, a medium that facilitates instant and round-the-clock communication, as well as complete integration across multiple channels.


As a business process that has benefited massively from incorporating IT technology in its processes, HRM is – predictably – proving to be an ideal ground for the deployment of AI and Machine Learning technologies. A forward thinking and results oriented organization cannot afford to ignore the game changing effect of incorporating these solutions in the HRM processes.

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