As companies grow and evolve, one area every employee inevitably interacts with, regardless of their role, is the HR process—from recruitment to resignation. According to Gartner, 76% of HR leaders believe that failing to adopt AI solutions like Generative AI within the next 12 to 24 months will leave them behind. Moreover, 81% of HR leaders are already leveraging AI or machine learning to enhance efficiency. If your HR department hasn't yet integrated AI or machine learning, your company might already be falling behind. Today, we explore how technology is transforming HR.
First, let’s look at the global growth of the HR technology market. HR technology encompasses all hardware and software designed to automate and streamline HR processes. This market, valued at $37.66 billion in 2023, is projected to reach $81.84 billion by 2032. This growth is driven by the increasing automation of HR operations and the adoption of Generative AI in HR solutions, making it a promising field for the future.
Below are the key areas where AI and data are expected to make a significant impact in HR:
Boston Consulting Group (BCG) predicts that integrating Generative AI into HR processes will significantly enhance self-service platforms, streamline productivity from recruitment to retirement, and personalize HR services. With AI, HR productivity could increase by up to 30%. AI-driven chatbots, offering human-like conversational experiences, will expand the use of self-service platforms, cutting employee request approval times by 40%. This shift allows HR teams to concentrate on more strategic tasks as employees gain quicker access to company policies, procedures, and benefits information.
IBM, for instance, utilizes its AI assistant CHIP (Cognitive Human Interface Personality) to handle employee inquiries. Initially trained to answer 200 common questions—such as “What’s the vacation policy?” or “Who is the digital marketing expert in the company?”—CHIP has since expanded its capabilities, contributing to the automation of HR processes and enhancing employee satisfaction.
AI is also set to revolutionize the onboarding process, automating over 50% of related tasks. Furthermore, while sending personalized messages to every job candidate might seem daunting, AI can create and deliver personalized communications, doubling candidate engagement. For example, a global automotive company has implemented an AI-powered avatar that provides tailored feedback to job applicants.
Consider the challenges HR professionals face when hundreds of applications flood in for a single job opening. Multiply that by several openings, and the task becomes overwhelming.
To address this, Unilever, a global consumer goods giant, leverages AI to analyze video interviews, evaluating candidates’ speech patterns, tone, and facial expressions to assess job fit. Some companies, like JustEat, a European food delivery service, have completely eliminated resumes from their hiring process. Instead, they use an AI chatbot to send tailored questions and cognitive tests to candidates, cutting their hiring process time by 50%, from 14 days to 7.
HR GO, a UK-based recruitment firm, employs machine learning to automatically match candidates with job postings. Receiving over 5,000 resumes each week, and handling hundreds of thousands annually, HR GO leverages its vast data to enhance the quality of hires and improve the accuracy and efficiency of its recruitment processes.
As we've seen from the examples above, companies worldwide are revolutionizing their HR operations through AI and data. For instance, Bespin Global has successfully partnered with major players to enhance their data-driven HR services. By implementing cloud-based data lakes, pipelines, and warehouses, we've helped companies standardize data management and accelerate analysis, enabling more personalized job matching and the rollout of innovative, data-driven features.
In today’s rapidly evolving landscape, AI and data are key to staying competitive in HR. If you're looking to leverage these technologies to boost productivity in HR or other areas, contact Bespin Global. With our deep expertise in AI and data-driven solutions, we're equipped to provide the most effective managed services tailored to your business needs.