The generative AI in HR market is expected to grow significantly and exceed USD 1669.3 by 2033. Considering the huge potential and growth there’s no doubt that the generative AI market is expected to grow at a massive rate in the few days. The top tech players have already adopted it and implemented it in various business units, with HR being one of them.
Generative AI when trained properly can be very beneficial for the human resource field. Right from creating new content to training the employees and especially hiring, generative AI in human resource can be a huge game changer. The relevance of the same is huge and can play an important role in driving maximum benefits, especially for the company.
This blog explores the potential of generative AI in HR, so continue reading to understand more information in detail.
Generative AI Use Cases in HR
What is generative AI? The use of AI to create new content or work on the models that can reduce the manual actions. Talking about the generative AI in human resources has played an important role in easing a lot of tasks. Right from screening resumes to scheduling meetings and more, there are a lot of use cases of generative AI in HR.
Some of the potential use cases of generative AI in HR are as follows:
1. Automate Repetitive Tasks
As an HR professional, you may have to continue some tasks repeatedly. Not only does this make the job mundane, but also annoying and has a negative impact on your productivity. These tasks often include screening resumes or scheduling interviews. Letting AI do this task with appropriate prompt and data set can play an important role in ensuring the task is done without having a negative effect on your productivity.
A Career Builder Survey suggested that automating these repetitive tasks with AI helped 93% of them in saving time and increasing efficiency, whereas 67% of them reported resource savings (source: people spheres). One of the best benefits of this is that HRs can also ensure that there are no mistakes and additional biases especially in regards to getting the task done.
2. Appropriate Job Description
Most of the HRs are using AI in order to form appropriate and accurate job descriptions. Drafting and editing the job description with guides can be time consuming. However, letting generative AI do it ensures that the speed of creating these documents and quality of them also improves gradually.
Hiring prejudices and biases can significantly be brought down with the appropriate use of generative AI in HR. You can use these to easily draft inclusive job descriptions. As a result, these job descriptions can be helpful for removing any gender-specific and racial languages. Moreover, generative AI can also be very useful especially in regards to creating the job description as per company standards and required skills. Therefore, you’d be having realistic job descriptions in no time.
3. Better Employee Experience
Generative AI in HR may help with hiring, but also in ensuring the current employees are satisfied. Lack of employee engagement in activities can have a negative impact in business. In the same regards, candidate engagement and communication can also help them decide whether or not they should join the particular company.
Artificial intelligence can be helpful for personalization. This can foster communication not only for candidates, but also employees. As a result, you can use generative AI for offering training based on their career goals and skills. Furthermore, there will be personalized development programs for all the employees. Generative AI can also assist in ensuring that the candidates receive smooth and appropriate solutions for their queries.
4. Enhanced Talent Management and Talent Development Activities
Talent management and talent development are two very crucial functions in the HR industry. Generative AI in HR can assist with talent development, maintaining knowledge and sharing additional information about the company. Automating such activities in the company with AI can surely be useful for achieving around six times the revenue growth ( source: people spheres).
As an HR, you can work on training generative AI to offer for creating succession plans and identifying potential leaders in the company. Furthermore, it can also be very useful for creating a personalized career development plan for the employees. Therefore, not only the new candidates will be happy, but you will also be able to assist the existing employees. This can have an overall positive impact on their mental well-being.
5. Conduct Performance Reviews
As an HR, when you’re managing a company, you will have to look into a lot of details especially in terms of managing the performance reviews. Not only does it take up a lot of effort, but is also very time-consuming. It is not always possible to conduct performance reviews thoroughly. In such cases, generative AI can be trained to perform the reviews. Generative AI can assist the managers to identify the key gaps and overcome the challenges.
Not only can it conduct the performance reviews, but also ensure to create KPIs and review templates which can help in real-time monitoring of performance. Generative AI is being adopted significantly across the performance management sector. This can help to increase efficiency by at least 40% (source: captioning star). Different business sectors such as finance, IT and more relied on generative AI for performance review and evaluation.
Read more: Top Generative AI Use Cases in 2024
Benefits of Implementing Generative AI in HR
Generative AI in human resource can have a lot of benefits, not only for the organization, but also for personal development of the professional. Some of the major benefits of implementing AI in HR are as follows:
1. Virtual and Augmented Reality Training
Generative AI can be helpful for creating an immersive learning environment, especially for virtual and augmented reality space. It offers employees the opportunity to not only practice their skills, but also establish realistic situations. This can help them to learn how to tackle real life problems. Comparatively, it is more affordable and ensures that they’re ready and learn how to find solutions to particular problems.
2. Track and Evaluate Progress
Generative AI in HR can be useful for tracking and evaluating progress, with time. They will be able to identify the potential areas of damage and understand if they need more time for succeeding. As a result, the managers will be able to understand if the particular employees need support in the field. Furthermore, the employees can work closely with the employees, improve their skills and eventually help them achieve their complete potential.
3. Create Personalized Development Paths
One of the major benefits of generative AI would be creation of personalized development paths. Generative AI will assess the skills, interest and professional goals of the employees and eventually helps to form a particular path. The tools will help to identify the areas in which the candidate would succeed or need the most help with. Furthermore, it can also offer information through different assignments and projects that one can take up especially in terms of achieving their professional goal. This indeed keeps the employees more productive and engaged at the workplace.
4. Recognition and Rewards System
Every employee deserves a recognition and reward for their hard work. It can be slightly time consuming to analyze how to reward them the right way. However, generative AI can play an important role in fostering the right ideas. The tool will help you come up with an appropriate rewards and recognition system for the employees. Not only does this boost their morale, but also plays an important role in keeping them motivated to do their work further. Identifying the different types of rewards will eventually help them with performance and engagement. Furthermore, the companies will be able to assess and create further lucrative opportunities through stimulating the rewards program for all employees.
5. Tailored Well-Being Programs
One of the major benefits of generative AI in HR is that it will assist a lot with well-being programs. As an HR, you need to assess the programs that can be helpful for the employees. Generative AI will not only help in fostering the ideas, but also assist in understanding how to implement these programs especially for their overall needs. Generative AI in HR will help the professionals identify the potential areas where the employees will need support like physical health, mental health and more. Furthermore, it would suggest proper programs and resources to support the employees the most.
Read more: Features for Robust HR Payroll System Development
Future of Gen AI in HR
The future of gen AI in HR is in positive hands considering the growth. The only condition is that it needs to be used the right way. As an HR, you also need to be mindful about the ethical considerations in order to avoid any potential damages. Some of the key ways through which the future of HR can be revolutionized with the inclusion of Gen AI are as follows:
1. Revolutionize Recruitment
The coming in of gen AI in human resource can help to revolutionize the entire recruitment strategy. Gen AI will play an important role in attracting the top talent and connecting with ideal candidates. Furthermore, it can also be extremely useful especially in terms of fostering company culture and growth opportunities. Gen AI in HR can also be useful for drafting personalized outreach emails and offering real-time feedback which would surely be useful for improving candidate experience.
2. Boosting Employee Engagement
It is extremely important in today’s time to drive employee engagement for the benefits. A good employee engagement indicates a positive work culture. Not only does this help in maintaining employee retention and increasing productivity. Gen AI can also be pretty useful for fostering learning and development within the organization. The tools will help to create personalized learning paths with microlearning modules with improved company communications. As a result, each of them will help in fostering a strong connection with the employees.
3. Empowering HR Teams
Gen AI will be one of the best assistants for HR teams especially in terms of conducting a wide range of tasks. For example, they would help in easing a lot of repetitive tasks like sending out offer letters, resume screening and more. With everything being automated, things can become a lot easier, especially in terms of writing the tasks. AI will also help in getting properly driven insights which can be useful for conducting a wide range of tasks. Moreover, they will also help in predicting the employees needs further ensuring that the HR becomes more responsive towards solving the customer needs.
Final Thoughts
The upcoming increase in popularity of generative AI in HR can be useful for different sectors. It is surely a useful tool which will ensure significant growth in the industry. HR professionals can surely use AI to foster an environment and culture of collaboration, innovation, and inclusion. The inclusion of these technologies, often provided by an AI development company, can be helpful not only for the particular field but also for growth in the long run. Generative AI in HR will be useful for fostering an environment of harmony and ensuring that businesses flourish significantly, especially in the future. This will also play an important role in creating several opportunities for the ever-evolving world, especially for job seekers. While there are surely some ethical issues, it is not quite difficult to combat them.
Also read: Human Resource Management Software Development – Cost & Features
FAQs
1. How can generative AI in human resources be useful?
Generative AI in HR can be helpful for crafting proper job descriptions with personalized communication. Furthermore, the AI chatbots will also help with offering real-time communication for feedback.
2. Can generative AI improve employee engagement?
Yes, generative AI can play an important role in improving employee engagement. It will help to establish a microlearning module further helping with targeted communications.
3. Will generative AI replace HR professionals?
No, it will not replace HR professionals. One of the biggest confusions people have is that generative AI will replace HR professionals, but it is not so. Instead, AI will be extremely useful for the HR professionals especially in terms of completing their tasks.
4. Are there any ethical considerations for generative AI in HR?
Yes, there are specific ethical considerations for generative AI in HR especially in regards to maintaining fairness in algorithms, and transparency in making decisions.
5. How to get started with generative AI in HR?
One of the easiest ways to get started is to explore AI-powered HR tools. Several of them are now available in the market offering opportunities such as onboarding, recruitment and training.
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