The human resource departments in organizations are responsible for managing the employee experience from start to finish, ensuring that the workforce is aligned with organizational goals.
While fulfilling their duties and responsibilities, HR professionals deal with various challenges on a daily basis. HR professionals need to find qualified candidates for the job post, interview them, cross-check and manage their documents, handle employee grievances, and more.
However, now they have started using generative AI. GenAI performs all the former tasks efficiently with no/minimal human intervention, saving time and improving productivity for HR professionals.
Read further to learn about generative AI in HR, its roles in the industry, and the benefits it offers.
According to recent reports, the global generative AI in the HR market was worth $648.14 million in 2024. It is expected to grow to $750.35 million in 2025 and will be worth approximately $2.8 billion by 2034, registering a CAGR of 15.77% between the forecast period.
Generative AI in HR: How It’s Shaping the Future of the HR Department
Generative AI is a subset of artificial intelligence that is developed with the purpose of “generating” content, such as text, videos, images, music, audio, and more. In the HR industry, it is revolutionizing the way professionals approach candidates, review their resumes, create reports, and other tasks.
Generative AI automates most of the work that a human professional does. It includes resume screening, onboarding, training, managing performance reports, and engaging with employees, freeing time for HR professionals to focus on strategic initiatives. It also helps them with making strategic and data-backed decisions that are related to human resources.
In the future, generative AI will become more advanced and capable of handling more complex administrative tasks. It will make human resources professionals more agile, data-driven, and responsive to the rapidly evolving trends and needs of the modern workforce.
Top Use Cases of Generative AI in Human Resources
Generative AI is used in the human resources sector for various purposes. The following are the top ways HR departments leverage generative AI technology.
1. Application Screenings
Generative AI plays a key role in screening candidates’ applications received by the HR departments.
HR professionals need to screen hundreds of resumes to find the ideal candidate. To do this tedious job, they leverage human resource generative AI solutions that scan the CVs based on specific parameters and come up with shortlisted resumes within minutes.
2. Job-related Content Creation
Generative AI is a great tool to create human-like content, in the form of text, images, videos, and more.
In HR, it is used to write job posts, and descriptions, create social media posts for hiring, write emails to candidates, create onboarding documents, employment contracts, and more. Generative AI solutions for HR professionals save time and streamline repetitive tasks.
3. Generative AI-enabled Virtual Assistants
HR leaders have talks with the employees in an organization. These talks are about grievances, policies, rules and regulations, work performance, etc. However, these conversations become time-consuming when employees talk about the same thing, let’s say about a new policy recently introduced.
To tackle this, HR leaders should invest in developing generative AI-powered virtual assistants that can solve employees’ queries around the clock. These assistants are pre-programmed with company policies, FAQs, explanations of new guidelines, leave records, and various other frequently discussed topics.
Another benefit of using genAI-enabled virtual assistants is that they can address various employees’ grievances at the same time, saving time and effort for HR professionals.
4. Employee Performance Assessments
Another role of generative AI in the HR departments is assessing employees’ performances. HR managers use generative artificial intelligence to go through the workforce’s work reports, get insights into their performances, and segregate the best-performing, mediocre, and low-performing employees.
This segregation helps HR bosses reward the best-performing employees and motivate the mediocre and low performers.
5. Mental Health Sessions
Mental health has become one of the most concerning topics in workplaces. To overcome this, HR professionals conduct one-on-one sessions with employees to discuss their mental well-being. However, in many organizations, HRs could not talk to every employee due to immense workloads.
To find a solution to this, HR managers have started using generative AI that can conduct conversational sessions with the employees, and ask them personalized questions related to their work, life, ambitions, etc. to dive deeper into their mental health.
Moreover, these genAI conversation solutions also flag suspicious conversations that show signs of poor mental health in employees. This helps HR managers identify employees with poor mental health and organize sessions to fix it and motivate the employees.
6. Employee Career Development
These days, organizations are investing heavily in the development of employees. They are focusing on enhancing their skillsets, body language, and soft skills and even providing career guidance.
Human resource managers are using generative AI-powered apps to achieve this goal, i.e. career development.
Using these apps, employees can learn new skills, and enhance the existing ones, ask doubts, practice communication skills, learn new languages, sales and marketing strategies, and much more, which would help in scaling their career graph.
Benefits of Generative AI in HR
Generative AI solution development brings various advantages to the table. Explore the top benefits of leveraging generative AI in the human resource industry.
1. Enhanced Recruitment and Talent Acquisition
Generative AI models can analyze the vast amount of candidates’ applications applying for jobs. Based on the set parameters, these models shortlist the top matches and make screening processes easy for HR professionals. GenAI in HR is used to create personalized job descriptions to attract suitable candidates for a particular job.
2. Improved Employee Onboarding
Generative AI-powered tools in the human resources industry improve employee onboarding processes. These tools can create custom onboarding content, such as offer letters, job roles, job contracts, training materials, and more, that help newly joined employees settle in the organization more quickly and efficiently.
3. Increased Employee Engagement and Retention
Generative AI also plays a key role in engaging and retaining employees within the organization. The genAI-driven virtual assistants can interact with employees around the clock and provide them with instant solutions to their problems, ensuring employee satisfaction. Also, generative AI can help HR managers predict attrition trends, and allow them to address retention issues proactively, increasing employee retention.
4. Streamlined Administrative Tasks
In HR, generative AI benefits managers and professionals by streamlining administrative tasks, saving their time, and allowing them to focus on other crucial tasks. The genAI software is used to automate repetitive tasks like managing employee records, handling employee grievances, revising packages, creating and updating company policies, and others. All these tasks are performed by generative AI with precision, and HR professionals focus on other crucial work.
5. Efficient Workforce Planning
Generative AI helps HR managers to get insights into feedback from employees, their mental health statuses, workloads, grievances, and more, and allows them to recreate policies that favor employee satisfaction. Furthermore, the technology helps HR teams to analyze employee data to anticipate future hiring needs or identify skill gaps, and create development plans, aligning with organizational goals.
6. Data-Driven Decision-Making
Generative AI helps human resources managers analyze employee sentiments, performance reports, grievances reports, and engagement trends, and provide them with actionable insights. HR leaders leverage these actionable insights to make data-backed decisions that not only favor employees but also help in the organization’s growth.
There are various top organizations leveraging generative AI for the HR departments. Let’s explore them in the next section.
Top Organizations Successfully Implementing Gen-AI for HR
The following businesses have implemented generative AI in HR successfully and witnessed positive results.
01- IBM
IBM, also known as International Business Machines Corporation, is a multinational technology company that has leveraged generative AI to enhance the efficiencies in the HR departments.
The organization uses its own developed, IBM Watson Talent, to perform various tasks, such as analyzing employee sentiment, predicting turnover, and customizing learning and development plans.
02- Coco Cola
The Coca-Cola Company, a leading soft drink manufacturing company, leverages custom generative AI software built to streamline HR processes. The company applies genAI for recruitment and automated HR tasks, enhancing candidate experience as well as efficiency in the hiring process.
03- LinkedIn
Source: https://www.connectcre.com
LinkedIn is a popular business and employment-focused social media platform in the world. The organization employs generative AI to assess the skillsets of employees and create personalized materials used for career development, in the HR departments.
04- Google
Google is another multinational technology development company that leverages generative solutions in the human resources departments. HR managers use generative for screening CVs and finding the ideal candidates. They also use the technology for skills mapping, enabling precise role fit and proactive workforce planning.
05- Amazon
Amazon is the leading e-commerce company that also embraces generative artificial intelligence in HR. Their HR teams apply genAI automating recruitment processes, saving their time and energy. Also, they use the technology to match ideal candidates with job requirements and create training programs for the skill development of employees.
Since you’ve read the blog this far, here’s a bonus for you; top generative AI software for the HR departments.
Top 10 Generative AI Solutions for Human Resources
Here are the top HR generative AI solutions along with top features and number of users.
Generative AI Solutions | Top Features | Number of Users |
IBM Watson Talent | – AI insights for workforce management – Predictive analytics for employee retention – Talent assessment tools | 1M+ |
HireVue | – AI-driven video interviews – Predictive assessments for hiring – Real-time feedback | 10M+ |
Pymetrics | – Neuroscience-based assessments – Bias-free candidate matching – Talent insights and analytics | 2M+ |
Hiretual | – AI sourcing and talent mapping – Real-time candidate insights – Predictive hiring analytics | 1M+ |
Paradox (Olivia) | – AI chatbot for candidate engagement – Automated interview scheduling – Pre-screening questions | 1.5M+ |
Eightfold.ai | – Skill-based talent matching – AI-powered upskilling paths – Diversity and bias insights | 3M+ |
Arya by Leoforce | – AI-driven sourcing and ranking – Real-time insights for hiring – Engagement recommendations | 750K+ |
XOR.ai | – Automated recruiting chatbot – Screening and scheduling automation – Candidate experience tools | 500K+ |
*Please note that the sequence above is random. It does not convey rankings.
Conclusion
Generative AI is a transformative technology that is changing the ways human resource departments work. It is used by HR professionals to streamline their repetitive tasks with utmost precision.
Also, generative AI solutions help HR managers analyze numerous reports, like employee performance reports, new hiring requirements, employee grievances, and more, and provide them with insights to make data-driven decisions and proactively solve issues.
Lastly, generative AI is also integrated with virtual assistants that interact with employees 24/7 and solve their queries in real-time, improving employee satisfaction and retention.
The workforce is the core factor that decides the success or failure of any organization. Thus, every business owner and HR leader must take care of the employees working for them. In the coming years, we will witness more HR departments using generative AI to streamline their processes and enhance communication with employees, ultimately gaining a competitive edge.
If you also want to transform your HR department, reach out to Quytech, the leading generative AI development company that has created numerous genAI solutions aligning with the specific needs of HR professionals. For more information, please visit www.quytech.com.