Nearly every aspect of business today from sales and finance to customer relationship management and marketing has been affected by artificial intelligence (AI) in some way. The aspect of human resources (HR), however, perhaps stands to benefit the most from artificial intelligence.
Human resources is one of the most complex internal business processes that any organization can have. The work is almost never ending with a constant stream of resumes to review, candidates to interview, calls to screen, and complaints to manage. This is why artificial intelligence can play such a vital role in human resources because with the right technology, a large portion of repetitive busy work can be eliminated and the recruitment process can be greatly accelerated.
Dr. Nathan Mondragon, Chief I-O Psychologist at HireVue, participated in several round table discussions with chief human resources officers (CHRO) earlier this year. Most CHROs were of the opinion that hiring really does need artificial intelligence because: (1) Poor communication often causes candidates to get lost in the shuffle; (2) The effect of the hiring process on job performance is largely unknown; and (3) HR is too busy to rethink the hiring process. Artificial intelligence has the potential to fix these and other issues by providing relevant HR analytics and people management solutions.
For example, artificial intelligence in recruitment can be used to scrap data from candidate’s social media profiles. That data can then be analyzed by machine learning algorithms to assist recruiters with the sourcing and screening process. AI-driven chatbots can also be used to ask candidates generic job-related questions regarding their experience, skills, personality, etc., and then pass the candidates’ answers on to a recruiter. Artificial intelligence can also help improve employee retention with AI-based solutions that allow organizations to detect employees who are about to leave.
Growing Role of Artificial Intelligence in HR
Pomato, a groundbreaking recruiting software, uses artificial intelligence to scan hundreds of resumes to match candidates with the most fitting positions within an organization. This makes the final decision-making process much easier for recruiters and hiring managers. Another artificial intelligence software, Interviewed, simplifies and speeds up the hiring process by providing online simulations of what applicants might do on their first day as an employee. Jason Freeman, founder and CEO of 42Floors.com, used Interviewed to staff up his online commercial real estate service. Speaking to Fortune, Freeman said, “We can look at 4,000 candidates and within a few days whittle it down to the top 2% to 3%. Forty-eight hours later, we’ve hired someone.” Even though the software is not perfect, Freeman believes its faster and better than the human way.
Additionally, it has been proven that artificial intelligence can greatly reduce biases that often factor in hiring decisions. In a CIO feature last year, Future Workplace analyst Kevin Mulcahy recommended AI and machine learning as objective observers that could screen for bias patterns. Talent Sonar is one such AI-focused company that aims to improve diversity in hiring through the use of machine-learning algorithms. Its software hides applicants’ names, gender, and personal identifiers with the hope of overcoming the unconscious biases of hiring managers.
The rise of artificial intelligence in human resources management does not mean that humans will be replaced by machines. It is obvious that human beings will always be the most important part of ‘human’ resources, but artificial intelligence can be of great assistance. Artificial intelligence software provides deep data-driven insights and people analytics with which human resources leaders and managers are better able to make more strategic decisions regarding recruiting, training, retaining, and developing talent. In turn, this leads to improved business performance for organizations.