Artificial intelligence (AI) has the potential to change the future of human resource management forever by integrating data analytics, machine learning, and automation into traditional work structures. This collaboration not only saves time, but also helps to support higher-quality outcomes.
As AI progresses from automation to augmentation, organizations are exploring how AI tools can improve the human resources (HR) experience for both current employees and job seekers. The focus of these initiatives goes beyond efficiency to include the real-time delivery of information, insights, and recommendations – and this is only the beginning of AI's transformative impact on human resources.
Many conversations center around how this new technology will affect workplaces as they undergo these significant changes. In this article, we'll delve into AI's role in enhancing efficiency in the workplace, some of the ways AI is already being used in HR, and how Borderless AI can be an asset to global companies looking to incorporate AI into their international hiring models.
The Incorporation of AI in HR Departments
Since artificial intelligence has been incorporated into the workplace, conversations have shifted from if the incorporation of AI can increase productivity in the workplace to how and where it can best be used to improve efficiency.
A study regarding the future of work by Eightfold AI shows that HR departments began embracing AI across most major functions as early as 2022, and adoption has only increased since then.
According to Gartner, 76% of HR leaders believe that if their organization does not adopt and enforce AI solutions as the technology continues to evolve, it will fail to achieve the same level of organizational success compared to organizations that do.
The adoption and use of artificial intelligence in HR have led to the coining of a new term: intelligent HR. Intelligent HR is the calculated application of data, analytics, and artificial intelligence to HR processes to improve decision-making, streamline operations, and increase overall efficiency. This is done through the use of machine learning, natural language processing, and predictive analytics.
This data-driven approach improves the efficiency and accuracy of internal processes, and helps HR leaders create a more personalized experience for job seekers and current employees.
How Are HR Departments Using AI?
It is essential to recognize the diverse applications of AI throughout human resources departments to understand how HR is being transformed by it.
From the initial interaction of a potential candidate with an organization to the continuous professional growth of employees, intelligent systems are enhancing various HR practices at every step.
Here are some of the key ways this technology is making an impact in human resources departments.
Facilitate Recruitment and Hiring Processes
Human resources teams are leveraging sophisticated algorithms to swiftly and efficiently analyze resumes, pinpoint optimal matches, and even forecast potential success for candidates within the organization. When effectively managed, this form of automation accelerates the hiring process and mitigates biases.
For instance, HireVue is an on-demand video interview platform that employs AI to assess candidates through video interviews, predicting job performance and cultural fit. The algorithm considers numerous data points, such as speech patterns and facial expressions, enabling HR teams to promptly identify candidates with high potential.
Onboard New Employees
The onboarding process has undergone transformations as well. AI-driven platforms now offer customized orientations for new hires, alleviating the burden of onboarding from HR teams.
Organizations like IBM utilize AI-powered HR platforms, such as Watson, to deliver tailored onboarding experiences to new employees. Systems like Watson can assist new hires in a wide variety of tasks, including but not limited to: navigating paperwork, addressing questions, and facilitating their seamless integration into company culture.
Manage and Monitor Employee Performance
Traditional annual employee evaluations are giving way to ongoing feedback systems backed by AI, enabling companies to adopt a more personalized approach to employee assessment and development.
Betterworks, an intelligent performance management platform, assists companies in developing a workforce that is more goal-oriented, accountable, and aligned. The tool facilitates various functions, including goal-setting, ongoing manager-employee discussions, peer feedback, and organization-wide progress monitoring. These functions help to provide leaders with better insights into employee performance on an ongoing basis.
Employee Training
With the introduction of AI, companies have the ability to design customized training programs for new employees to incorporate individualized learning programs that are tailored to individual performance, interests, and career aspirations.
Employee Satisfaction and Well-being
Forward-thinking HR departments can promote employee well-being through the intelligent use of data and AI. By monitoring behavioural patterns and stress levels, organizations can establish more productive work environments that contribute to increased employee happiness and engagement.
Thrive Global harnesses the power of data and AI to provide personalized well-being recommendations for employees. Through Thrive Global, companies can motivate their employees to adopt healthier lifestyles and reduce stress levels, ultimately leading to heightened productivity and engagement in the workplace.
Other ways that AI is supporting HR leaders in the workplace include:
Managing Employee Records
Artificial intelligence can assist in managing employee records by automating and streamlining various tasks, ultimately improving efficiency and reducing the likelihood of errors.
AI contributes to employee record management by automating data-related tasks, enhancing document organization, ensuring security and compliance, providing predictive analytics, facilitating quick search and retrieval, enabling employee self-service, and offering insights into performance metrics.
Payroll Processing
AI systems play a significant role in streamlining and enhancing payroll processing within organizations.
Ways that AI can assist with payroll processing can include:
- Improve accuracy by tracking employee attendance
- Provide predictive analytics for workforce planning
- Ensure tax compliance
- Enhance security through fraud detection
- Enable self-service options
- Facilitate seamless integration with other organizational systems
Administering Benefits
AI assists with benefits administration by:
- Offering personalized recommendations for employees
- Automating the enrollment processes
- Predicting costs
- Improving claims processing
- Enhancing communication
- Offering customized wellness programs
- Providing predictive analytics for benefit trends
Operating HR Chatbot and Support Services
AI-powered HR chatbots and support services leverage artificial intelligence technologies, such as natural language processing (NLP) and machine learning (ML), to automate and enhance human resources interactions.
By incorporating AI into HR chatbots and support services, organizations can:
- Enhance the efficiency of HR processes
- Provide quicker responses to employee inquiries
- Improve accessibility to HR information
- Empower employees with self-service options
This, in turn, allows HR professionals to focus on more complex and strategic aspects of human resource management.
Are Humans at Risk of Being Replaced by AI?
The question of whether AI will replace humans is a question being asked seemingly every day as the workforce is rapidly undergoing significant changes.
According to a global study from the IBM Institute for Business Value (IBV), leaders who were asked estimate that 40% of their workforce will need to reskill over the next three years due to AI in the workplace. This shift is not viewed as a loss but as an expansion of possibilities among professionals. 87% of those surveyed believe that employee roles are more likely to be changed than replaced entirely by generative AI.
Findings from Deloitte AI Institute's report show that nearly 62% of the business and technology leaders surveyed expressed excitement with regard to generative AI. However, 30% of respondents still regard AI with uncertainty. Overall, 79% of respondents said they expect generative AI to create considerable changes within their organization and industry over the next three years.
The real value of data and AI in the realm of HR is found in their strategic application to enhance processes while continuing to prioritize the human aspect. HR that is driven by data and empowered by AI can bring substantial benefits to organizations, yet it's crucial not to lose sight of the "human" in Human Resources.
Technology should enhance the efforts of HR, not diminish their significance.
What Role Does Borderless AI Play in Enhancing Global HR Efficiency?
Borderless AI is the AI-first international payroll provider and Employer of Record (EOR) that drives productivity throughout the global employment experience.
Borderless AI enables companies to quickly and compliantly onboard global talent across 170+ countries, removing the hassle of setting up local bank accounts and legal entities. Through our mobile-first platform, employers can provide real-time payments, draft offer letters, and more – all tailored to the country and currency of their choice.
Borderless AI's delivery model consists of two parts: the payroll platform, which manages your global team, and Alberni, an AI agent for global employment, which eases the process of global expansion. This approach to global employment is the world's first to combine resources for local compliance, payroll, and AI, all in a single platform.
When using Borderless AI's international hiring agent, business leaders can easily understand the nuances of managing a global workforce and navigate international employment law.
What is Alberni?
Alberni is the first AI agent for global employment law created by Borderless AI. Alberni assists with all aspects of global employment, including answering questions about global labor laws and local compliance, hiring regulations in over 170+ countries, and creating employment contracts for global employees. It has the unique ability to interpret raw employment records and generate output designed for individual internationally-based employees.
The technology is a type of generative AI that is trained by analyzing records and hundreds of thousands of human-created employment laws, and then interpreting the data in a way that is suitable for use in employment agreements in over fifty countries.
Alberni not only supports the creation of employment agreements by Borderless AI, but also serves as a self-service tool aimed at empowering both companies and their staff.
This enables employers to focus more on core HR responsibilities rather than dealing with drafting employment agreements and manually searching for the correct information online.
AI V.S. Generative AI
If you're not familiar with the difference between AI and generative AI, the main distinction between conventional AI and generative AI is in their capabilities and applications.
Traditional AI (also called Narrow or Weak AI) systems are mainly used for data analysis and prediction. In contrast, generative AI, like OpenAI's ChatGPT, builds upon those functions and generates new data.
In other words, traditional AI demonstrates proficiency in recognizing patterns, whereas generative AI excels in crafting patterns. While traditional AI can analyze data and articulate observations, generative AI can utilize the same data to generate something entirely new.
How Alberni Works
Alberni relies heavily on the functions of generative AI. As the world's first AI-powered global employment law agent, Alberni allows its users to create employment contracts, ask employment-related questions, and analyze legal agreements.
Do you have questions about health insurance for US expats in Mexico or how much time off employees are allowed for maternity leave in Germany? Just ask Alberni. It's programmed to answer all your global employment questions promptly and accurately.
Need help drafting an employment contract for an employee in Japan? Submit your existing contract for Alberni to analyze, or ask it to draft one, and it will generate a new global employment agreement in seconds.
Its primary purpose is to simplify workplace regulations and local laws for you. Simply drop your existing file or write any questions you have into the chat, and Alberni will provide you with answers.
How Can Alberni Help Navigate Global Hiring Laws?
Thanks to Alberni, Borderless AI can offer faster, better, and more cost-efficient services to global employers.
Artificial intelligence has been proven to enhance the efficiency of managing a global workforce. This involves understanding and navigating the diverse hiring rules and regulations across different countries with various legal practices. Alberni can support HR teams in addressing the complexities associated with hiring and managing international workers by providing real-time solutions to queries such as:
What is the process of getting a nomad visa in Costa Rica? What is the cost of setting up an entity in the UK? What is a SIPP? And more.
These are just a few examples of how Alberni can offer on-demand assistance to answer some of the most common HR-related questions, saving employees time and offering greater assurance when negotiating global working agreements.
Other Benefits of Working with Borderless AI
Alberni is just the latest addition to Borderless AI’s plethora of already existing Employer of Record (EOR) services. Our EOR services allow employers to onboard, pay, and manage their global team hassle-free, no matter where they are.
Some of our EOR solutions include:
- Drafting contracts and legal documents
- Managing and setting up localized employee benefits
- Tracking local vacations and public holidays
- Administering global payroll
- Ensuring local labor law and tax compliance
- Swift and streamlined onboarding services
- Support with global visa requirements
Why Choose Borderless AI?
Now powered by the latest tech, Alberni takes the Borderless AI experience to the next level. Borderless AI is the first company in the world that is building Al catered to international employment law to better assist global companies in remaining legally compliant.
Alberni already powers Borderless AI's employment agreements, which are offered as part of our EOR services. Now, you can find answers to your global employment questions and create and analyze your contracts – all on-demand!
Our services are built with the future of global employment law and our customers' needs in mind. Speak with our team today to see how Alberni can help you navigate global hiring laws with confidence and ease.
Disclaimer
Borderless does not provide legal services or legal advice to customers, contractors, employees, partners, or the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
