Automation in HR: New opportunities and challenges

Artificial Intelligence is rapidly changing many industries, and HR is no exception. Companies are actively adopting technology to streamline processes and improve efficiency, and in 2024, 76% of HR managers are convinced that they risk falling behind if they don't start using generative AI soon. However, this digital transformation comes with certain risks, especially around ethics, data and change management in the work environment as human control is reduced. We take a look at how automation and artificial intelligence are impacting HR, improving performance and transforming workforce management.

Artificial intelligence in business

As defined by IBM, artificial intelligence is systems or machines that can mimic human intelligence and improve based on accumulated information. These technologies support employees in decision making, speech recognition and autonomous learning, which can greatly simplify routine processes and minimise errors. In HR, AI tools can perform key tasks including:

• Automating processes based on historical data and internal company rules;
• Forecasting and planning with algorithms that use trend and future event analyses;
• Natural language query processing, pattern recognition and decision making (NLP);
• Analysing data sets using machine learning techniques to quickly draw conclusions;
• Adaptation and self-learning to continuously improve its functions based on the data collected.

Benefits of AI for HR: automating tasks and optimising recruitment

AI offers companies the opportunity to automate repetitive tasks, improve calculation accuracy and speed up data analysis. For example, automated tools simplify the payroll calculation process by taking into account taxes, social contributions and bonuses in real time, reducing errors and the burden on the HR department. In addition, automation helps manage leave requests: an employee checks his balance, submits a request, and the system instantly analyses the availability of free days, after which the manager approves or rejects the request.

AI is also being used to optimise recruitment, where algorithms can help analyse and sort resumes to speed up the search for suitable candidates. Dedicated AI programs can sort and analyse thousands of applications, highlighting those candidates who fit the right profile. Chatbots using NLP answer candidates' frequently asked questions, inform them of the application status and even schedule interviews. This allows HR staff to focus on more important tasks, such as assessing candidates' qualifications during the interview process.

Personalising training and increasing employee engagement

AI facilitates the creation of personalised training programmes, which is especially relevant for companies looking to develop the competencies of their employees. Based on analyses of skills and occupational goals, AI tools can offer training plans tailored to the specific needs of each employee. These systems also take into account future skill needs: advanced algorithms analyse market trends and technologies, allowing HR to identify needs for certain competencies in advance.

AI also helps HR departments analyse the company's social climate, identifying signs of discontent, such as decreased productivity or negative comments. Such analytical tools allow HR to intervene quickly, organise meetings, offer training or improve working conditions to prevent potential layoffs and increase employee satisfaction. In addition, AI helps customise rewards and recognition programmes, providing a personalised approach based on employee performance, which positively impacts employee engagement and loyalty to the company.

Ethical and technical limitations of AI in HR

Despite its powerful capabilities, AI in HR also raises certain risks and questions. Algorithms can replicate and even amplify biases present in the raw data, sometimes leading to biased decisions in recruitment or talent management. Fairness and discrimination issues arise when the system favours certain candidates without objective reasons. Therefore, companies must ensure that algorithms are transparent and decisions are fair to support inclusion and diversity.

Personal data protection is also an important aspect: the use of AI in HR involves the processing of a large amount of employee information, which requires strict compliance with data protection regulations. Companies are required to protect sensitive employee information by using encryption and access restriction techniques to minimise the risk of leaks. Implementing new AI solutions can be costly and require employee training, which sometimes causes resistance and trust issues with new technologies. As algorithms are often opaque, employees and managers need to be aware of how they work in order to successfully integrate these solutions into HR processes.

Conclusion: Automation in HR

In conclusion, AI and automation offer great opportunities for HR, offering effective solutions for automating tasks and managing employees. However, companies must consider ethical considerations, data protection and bias risks to ensure that these technologies benefit everyone involved in the processes. A conscious approach to bringing artificial intelligence into the recruitment industry can create a sustainable and progressive HR system, improving productivity and maintaining transparent and fair employee relations.