Skip to content
Man in blue suit smiling into camera
Anna Schosser08.05.202313 min read

5 Reasons Why You Should Use AI in Human Resources?

5 Reasons Why You Should Use AI in Human Resources?
According to a Deloitte survey, more than half of organizations (56%) are currently utilizing predictive analytics for workforce planning and employee retention, with another 20% aiming to do so over the next two years

- Deloitte 

In today's world of rapidly advancing technology, artificial intelligence (AI) has become an integral part of many businesses. Companies are increasingly turning to artificial intelligence as a way to improve their Human Resources departments and create more efficient workflows. With the help of AI, companies can automate mundane tasks, streamline processes, and even make better hiring decisions.

This article will explain five reasons your company should consider using AI in its Human Resources department. We’ll discuss how artificial intelligence can help you save time and money while improving efficiency and accuracy across all areas of HR operations – from recruiting to employee development programs.

As renowned leader, Steve Jobs said: “Technology is nothing… What’s important is that you have faith in people; that they’re basically good and smart; given the right environment [and] tools they will do wonderful things."

Image of Steve Jobs from Times article Apple founder Steve Jobs wrote himself philosophical email as he was dying of cancer, widow reveals

By leveraging the power of AI in your human resources department, you'll be giving your team members the tools they need for success!


What's in this post?


What is Artificial Intelligence?

Artificial Intelligence is a field of computer science that focuses on the development of intelligent machines that are capable of performing activities that generally require human intelligence, such as learning problem-solving, decision-making, perception, and natural language understanding. AI systems are built to examine massive volumes of data, learn from patterns, and make predictions or judgments based on that learning.

Machine Learning is a subfield of artificial intelligence concerned with the development of algorithms that can learn from data and improve their performance on a job over time. In other words, machine

Examples of AI include voice recognition, image recognition, and computer vision. AI can help with tasks such as recognizing objects in photos or understanding speech patterns in conversations.


What are human resources?

The management of an organization's employees and their related activities is referred to as human resources (HR). Human resources professionals are in charge of finding and hiring new employees, administering employee benefits and compensation, establishing and executing training programs, and assuring labor law and regulatory compliance.

Furthermore, human resources are crucial in establishing organizational culture, encouraging diversity and inclusion, and building a healthy work environment.

Effective HR systems and practices are essential for attracting and retaining top talent, increasing employee productivity, and ultimately driving corporate success. As companies increasingly prioritize their people as a strategic asset, HR is becoming an increasingly critical function for organizations of all sizes and industries.

Retorio 5 Reasons Why You Should Use AI in Human Resources multiple people with their arms around each other standing in line


What are the benefits of using AI in Human Resources?

Artificial intelligence can be used in Human Resources departments to automate mundane tasks, streamline processes and make better hiring decisions. By leveraging the power of AI in Human Resources, companies can save time and money while improving accuracy across all areas of their own HR operations and department operations. Continue reading to learn more about the benefit of using AI in Human Resources!

1. Streamlining the recruitment process

Using AI in human resources can greatly help recruiters in streamlining the recruitment and hiring process in a variety of ways. To begin, AI-powered solutions can automate many of the time-consuming procedures associated with recruiting such as resume screening, candidate matching, and interview scheduling.

Natural Language Processing (NLP) algorithms are used by AI-powered resume screening software to quickly and accurately analyze resumes and job applications to decide whether a candidate meets the criteria for the open job position.

This technique saves recruiters a significant amount of time by quickly screening out unqualified candidates, leaving just the most suitable candidates for further consideration.

Secondly, artificial intelligence can help recruiters in identifying high-quality candidates through its data-driven insights. By using employee data and using AI-powered technologies in human resources, companies are able to detect patterns and features of successful applicants based on the candidate's personality traits and behavior and compare them to the company's target profile of their ideal candidate's personality and behavior. This data can assist recruiters in better targeting job postings and identifying candidates who are more likely to succeed in a certain job role.

Finally, by offering tailored and efficient interactions, using AI in human resources can vastly improve the candidate experience. AI technology can also provide applicants with real-time feedback on their application status, answer FAQs, and provide personalized suggestions based on the candidate's profile. Your company will also be able to give the candidates their own analysis results of what their personality and behavior are in a workplace environment that will also be beneficial for the candidate to see where they can improve, and where their strengths lie.

This results in a more transparent and streamlined recruitment process, which helps to improve applicant experience and, as a result, attracts top talent from all over the world.

2. Improved Onboarding

Employee onboarding is an important aspect of every organization since it ensures a smooth and successful transition for new employees. There are numerous ways that AI in human resources can help to improve the onboarding experience for recruiters.

Below is a list explaining more benefits in further detail:

  • Personalized onboarding: one of the most significant benefits of AI in human resources for onboarding is the ability to personalize the experience for each new hire. Businesses can use AI technology to build tailored onboarding strategies depending on the employee's position, department, and skill level. From the start, this tailored approach can make new employees feel more engaged with their team and the company overall, helping them feel more appreciated and driven to deliver their best performance. It also allows the company to build stronger relationships with new team players.
  • Improved efficiency: The traditional onboarding process can be extremely time-consuming and lengthy, comprising several manual activities and documentation. Much of these activities, such as paperwork and data entry can be easily automated using AI-powered onboarding software. This automation process will help save HR departments a substantial amount of time and money, allowing them to take focus on other important duties such as talent acquisition and employee engagement.
  • Enhanced communication: To ensure that new hires are well-informed and incorporated into the company culture, effective communication is essential during the onboarding process. AI-powered onboarding can boost communication by delivering real-time feedback, addressing FAQs, and providing clarification on corporate regulations and processes. This improved communication can result in a more favorable and effective onboarding experience for new employees.
  • Improved data management: Companies can use AI in human resources to collect and analyze large volumes of data in order to identify trends and patterns in the onboarding process. This information can be utilized to continuously modify and enhance the onboarding process, resulting in greater employee satisfaction and retention rates. AI-powered onboarding can also assist firms in meeting legal standards and ensuring data security.

3. Improved Learning and Development

In today's rapidly evolving business and economic scene, the Learning and Development programs (L&D) comprise much more than just merely offering employee training. It is about creating a continuous learning culture that improves performance while also upskilling and reskilling employees to respond to changing needs and situations.

Therefore, AI in human resources can revolutionize learning and development by using key performance indicators and providing personalized and targeted training programs for employees that are looking to enhance their skills.

By analyzing employee performance data, AI-powered tools can identify individual strengths and points for improvement, and provide personalized training content to help employees develop the skills they need to succeed that fits the level they are currently at. This approach to L&D improves employee engagement, retention, and performance, while also saving time and resources for HR teams.

What's more - AI will not only focus on just the employees but it can also assess a leader's characteristics by examining his or her team's characteristics and can provide them with relevant suggestions on how they can enhance their performance.

Using AI to data-mine a company's HR information system can help predict employees who are at risk of leaving the company and which will guide and focus retention activities. AI will also help determine talent and experience shortfalls to support the company's business strategies. 

4. Attracting top talent

The use of AI in human resources can enhance an organization's ability to attract highly qualified individuals by expanding the pool of candidates and offering a more customized candidate experience. With AI platforms, HR teams can communicate with a greater number of candidates and efficiently identify the most suitable candidate for the job.

AI can help to automate tedious tasks such as resume screening, interview scheduling, and candidate matching, freeing up HR teams to focus on more strategic activities such as building relationships with candidates and hiring managers. By providing a more efficient and transparent recruitment process, AI can help to improve the candidate experience and attract top talent.

Furthermore, AI in human resources can assist companies in identifying candidates who may not have been previously considered for a particular role. For example, artificial intelligence can analyze candidate data to identify the talents, experiences, personality traits, and behavior that fit the company's target profile, even if the candidate does not have a traditional background in that particular field.

This approach can broaden the talent pipeline and attract individuals who would have been overlooked in a typical recruitment procedure. Organizations can establish a more inclusive and inventive workforce that is better able to achieve business success by harnessing the power of AI to find and engage with a varied pool of applicants.

5. Reduced costs

AI in human resources can save a significant amount of time and money for organizations by automating certain labor-intensive processes such time-consuming tasks such as performance reviews and payroll processing. AI tools can also help to reduce the number of manual errors that are commonly associated with administrative tasks, resulting in improved accuracy and cost savings. Additionally, artificial intelligence can be used to create more efficient and cost-effective employee engagement strategies, allowing HR teams to better monitor and measure employee satisfaction levels.

Using AI can help the HR management teams enhance efficiency and accuracy, leading to a decrease in costs and allowing them to focus on valuable activities that contribute to business success.

Retorio 5 Reasons Why You Should Use AI in Human Resources man wearing beanie smiling


Examples of AI in Human resources

Examples of AI being used in human resources are abundant, including:

Recruiting automation 

AI-powered tools can be used for recruiting automation to automate tasks such as resume screening, interview scheduling, and candidate matching. This can help speed up and improve the accuracy of the recruitment process, while also reducing the workload on HR teams.

Predictive analytics 

AI-powered predictive analytics can assess candidate information and identify high-quality candidates who are more likely to become top performers in a job position. This allows for more precise job postings and helps to identify candidates that may have been overlooked in a traditional recruitment procedure.

AI-powered chatbots 

Chatbots can be used to automate initial candidate interactions, answer frequently asked questions, and provide real-time feedback to candidates. This helps to provide a more personalized and efficient candidate experience while also freeing up HR teams to focus on more strategic activities.

Learning and Development 

As previously mentioned, AI technology can develop personalized training programs for staff according to their personal performance information. This improves employee engagement, increases productivity, and saves time and resources for HR departments.

Diversity and Inclusion 

The use of AI in human resources can reduce bias by analyzing data to detect potential areas of prejudice and providing suggestions for enhancing diversity and inclusion. As a result, companies can build a diverse and innovative workforce, which can contribute to their success.


Check out another blog post of ours explaining 5 ways that AI can improve your HR operations now!

Future of AI in Human Resources

AI is expected to play a major role in the future of human resources management, as shown by AI-related statistics and trends in HR data. Furthermore, the HR market for AI is rapidly increasing, with an estimated value of USD 3.89 billion in 2022, projected to reach USD 17.61 billion by 2027, and a CAGR (Compound Annual Growth Rate) of 35.26%.

With that being said, 92 percent of HR leaders plan to increase their use of AI in their HR processes. They aim to mainly use it for performance management (43%), payroll processing and benefits administration (42%), recruitment and hiring (41%), onboarding new employees (40%), and employee records management (39%). The majority aims to do so in the next 12 to 18 months.

According to a report, HR professionals are pleased with the incorporation of AI in HR procedures. A significant majority, 86%, prefer the use of automated systems to assist in decision-making. The study also revealed that workers are increasingly positive about the integration of AI in their workplace, with human resources being at the forefront of this development.

Moreover, 66% of CEOs believe that the implementation of artificial intelligence could significantly enhance the HR field. This could potentially include automated suggestions for enhancing hiring procedures and more accurate predictions for workforce expansion.

If you want to know more about HR trends for this year, watch the video below to see 11 trends that are bound to shape the future of human resources for many years to come! 


Key Takeaways

  • AI in human resources can enable the automation of tedious tasks such as resume screening, interview scheduling, and candidate matching, resulting in more efficient and accurate recruitment processes.
  • AI technology can be leveraged to develop personalized training programs for staff according to their performance.
  • AI can help eliminate bias by analyzing data and providing recommendations to improve diversity and inclusion.
  • 92% of HR leaders plan to increase their use of AI in HR within the next 12-18 months. 
  • 86% of HR professionals prefer the use of automated systems to assist in decision-making while 66% of CEOs believe that the implementation of artificial intelligence could significantly enhance the HR field.




Nowadays, AI is being utilized in HR to automate and enhance different tasks. Such tasks include using AI algorithms for quick analysis of job applications and selecting the best candidates. Additionally, AI is used in predictive analytics on employee behavior and performance data to detect possible issues early on, giving HR teams the chance to take proactive measures to resolve them.

Additionally, HR departments are increasingly using AI-powered chatbots to assist employees with time-off requests and benefits inquiries. This automation saves time for the HR team, allowing them to focus on more strategic projects.


Absolutely! AI can help HR professionals save time and reduce costs in a number of ways. For one, AI-based tools and applications are able to automate tedious tasks such as resume screening, interview scheduling, candidate matching and more. This means that less time spent on these mundane tasks, leaving HR teams with more time to focus on strategic initiatives.

The use of AI in recruitment and hiring can yield several benefits. One of the biggest advantages is the automation of repetitive tasks such as resume screening, candidate matching, and interview scheduling. By doing so, recruiters and hiring managers can devote more time to important initiatives. Additionally, AI can assist in minimizing bias by removing personal information from resumes and evaluating candidates based on their skills and qualifications.

Finally, AI can be useful in the hiring process by providing insights such as the most effective job posting channels and identifying patterns in candidate behavior. This can help streamline the recruitment and hiring process, enhance the candidate experience, and improve hiring decisions.


Anna Schosser

I create engaging and informative content about the importance of artificial intelligence and video-based AI technology for recruitment. I discuss cutting-edge AI developments and new technology with storytelling skills.