Total HR: How AI is transforming recruitment, employee compensation, and more

Artificial intelligence is rapidly transforming human resources departments, with AI applications becoming increasingly sophisticated in automating repetitive tasks and enhancing strategic decision-making. According to new research from The Josh Bersin Company, organizations are leveraging AI across recruiting, HR administration, and employee support functions, allowing HR professionals to focus more on strategic initiatives while improving efficiency and employee experience. This shift represents the next phase of digital transformation in the workplace, with potential to redefine how HR departments operate.

The big picture: HR departments are implementing AI solutions most extensively in recruiting processes, where the technology demonstrates its most mature applications.

• Companies are using AI to write job descriptions, encourage application completion, screen candidates, and schedule interviews, creating significant time savings.
• One conglomerate reduced its time-to-fill positions from “three to four months to three to four weeks” through AI implementation.
• Chipotle has reported dramatic efficiency improvements from using an AI chatbot to speed up application completion and increase applicant flow.

Beyond recruitment: AI applications in HR are expanding to support employee development and performance management functions.

• Organizations are leveraging AI for performance assessment, development planning, coaching, and evaluating compensation relative to peers.
• AI tools are helping create personalized career roadmaps for employees, enhancing engagement and retention strategies.
• These applications allow HR to shift from operational tasks to more strategic employee support initiatives.

Employee support transformation: Companies are achieving significant time savings by using AI-powered tools to handle routine employee inquiries.

• By uploading company policies into AI systems, organizations can launch virtual agents that answer employee questions on-demand.
• These tools also help keep policies updated across all platforms, ensuring consistency in information.
• Industry experts estimate this approach could free up at least half of a larger company’s HR business partner or manager’s time.

What they’re saying: Experts predict AI will quickly become so embedded in HR software that it won’t require special designation.

• “My guess is, a year from now, we’re not going to use the phrase ‘AI’ very much. Do you say ‘web-based mobile application’? No, it’s just an app…all software is built on AI now,” noted Josh Bersin, founder and CEO of The Josh Bersin Company.
• Apratim Purakayastha of Skillsoft highlighted that “generative AI is being used for tasks that are repetitive,” creating opportunities for HR to become more strategic.

Behind the numbers: While AI offers efficiency gains, companies must balance automation with human oversight in sensitive HR processes.

• Resume summaries rather than automatic filtering are being preferred in some organizations due to AI safety considerations.
• HR teams are using AI to assist with sourcing candidates, A/B testing job descriptions, and determining appropriate salary ranges.
• This balanced approach aims to leverage AI for efficiency while maintaining necessary human judgment in critical decisions.