AI tools for HR automation: How to use them, best options, and benefits

Published

Sep 4, 2024

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While humans are no strangers to using technology to solve business problems, the recent, rapid adoption of artificial intelligence represents a step change in how modern organizations approach operations. From chatbots to automated schedulers to software that quickly generates reports that might take a team of analysts weeks, the applications seem limitless.

For HR leaders, the potential for automation, in particular, presents opportunities to recapture time and cost associated with manual tasks that detract from activities that grow an organization.

What are AI tools in HR?

AI tools in HR are software solutions that leverage technology like machine learning, natural language processing, and data analysis to automate tasks and workflows, giving HR professionals more time to devote to substantive work that requires judgment, critical thinking, and creativity.

Most AI tools for human resources rely on algorithms to process large quantities of data and generate actionable conclusions. Many also use natural language processing to explain or summarize those analytical findings in a straightforward, accessible format.

Example: An AI-powered performance management tool reviews feedback surveys for each employee from multiple direct and indirect managers. In addition to calculating an objective performance score based on numerical grades, the tool uses natural language processing to extract important comments from the feedback form.

The tool then compares results against data from previous years and recommends certain employees for further development or promotion based on performance trends.

Incorporating AI into human resources improves operational efficiency and has the potential to drive growth through better decision-making and improved employee engagement.

Because AI tools can review and synthesize vast quantities of information in far less time than a person (or even people) would need to accomplish the same task, they can provide more comprehensive and granular analysis. This, in turn, leads to more insightful strategic choices from HR executives. HR teams and hiring managers can also leverage AI’s pattern recognition abilities to identify employee and team performance trends and offer personalized support or nurture top talent.

How to use AI in HR?

We’re only just beginning to tap into the potential of machine learning and natural language processing.

While innovators continue to push the technology forward, today’s HR professionals use AI to streamline the entire employee lifecycle, from recruitment to offboarding.

Recruitment. Machine learning reduces hiring time by accelerating the application review process, automating candidate outreach, and minimizing internal administrative friction around interview scheduling and candidate assessment.
Workforce planning. By analyzing trends in employee turnover and market conditions, machine learning can help organizations hire the right people in the right places at the right time.
Performance management. Algorithms trained on large data sets to review and analyze performance can help reduce bias in the assessment process.
Onboarding and offboarding. AI-assisted workflows that guide new joiners and leavers step-by-step through important processes, such as benefits enrollment or equipment return, eliminate the need for reminders, follow-ups, and detailed checklists.

Best 14 AI tools for HR automation

Automating routine or administratively burdensome human resources tasks, whether in the realm of recruitment, workforce planning, or learning and development, can save HR teams valuable time and drive smarter decision-making.

Best AI tools for HR

Interestingly, our picks for the best AI tools for HR weren’t designed specifically for use in the human resources context. Rather, they’re versatile, adaptable AI solutions capable of performing general tasks extremely well and open to a high degree of customization.

1. ChatGPT
As a large language model chatbot capable of generating human-like responses to queries, ChatGPT can help HR professionals automate writing-intensive tasks, such as handbook generation and survey production.

It can also perform basic research and answer simple factual questions. Because ChatGPT was trained on large datasets with a cutoff in 2021, you should always verify its findings against a reliable, current source. ChatGPT cannot substitute for legal or accounting advice.

2. Google Bard

Developed by Google, Bard is another large language model-based chatbot broadly similar to ChatGPT. It offers many of the same functionalities and features, with the added benefit that Bard continuously trains on data drawn from Google’s search engine tool to provide more accurate, context-specific responses to queries.

3. Notion

Productivity and collaboration tool Notion combines data management, task management, and note-taking into a single platform. A popular choice for project management and simple database development, Notion uses AI to automate repetitive tasks, summarize large quantities of data, and suggest opportunities to streamline workflows.

HR professionals can benefit from Notion’s database to efficiently manage recruitment by centralizing applicant profiles and documentation in one place. Notion’s AI features can assist with resume review and candidate screening, while automations generate custom workflows for interviewers and new joiners.

4. Grammarly

Popular writing tool Grammarly uses generative and predictive AI to review, refine, and repurpose human-produced text for various uses. Unlike ChatGPT and Google Bard, Grammarly focuses on enhancing existing pieces of writing created by humans—not generating entirely new text in response to prompts and requests.

HR professionals can leverage Grammarly to improve and adapt written materials to make them more effective or fit for purpose. For example, a handbook drafted in the previous decade might receive a refresh to make it more conversational and inclusive.

Best AI tools for recruitment

One of the first use cases for AI in HR, many popular recruitment tools incorporate machine learning and natural language processing for tasks ranging from resume review to drafting offer letters.

5. Lever TRM

Lever TRM is an integrated applicant tracking system (ATS) and candidate relationship management (CRM) tool that uses automated workflows to eliminate manual intervention in tasks like job posting and resume parsing.

Lever also touts enhanced diversity and inclusion training for its ATS to reduce the risk of bias in applicant review.

6. Greenhouse

ATS solution Greenhouse leverages AI to allow recruiters to design complex custom workflows for virtually every stage of an organization’s talent search. In addition to using generative AI for resume parsing, Greenhouse goes one step further. The software anonymizes candidate CVs by searching for and removing relevant keywords to eliminate unconscious bias in the decision-making process.

Greenhouse also uses AI to assist with scheduling tasks, enhance the candidate experience, and reduce the time between application, interview, and decision.

7. LinkedIn Recruiter

LinkedIn Recruiter, the popular networking platform’s dedicated tool for sourcing candidates from user profiles, uses AI to simplify talent searches. With AI-Assisted Search and Projects, recruiters can enter natural language queries describing an ideal candidate, role attributes, or other qualifiers and use them as the basis for a search. The software also suggests custom filters for initial search results based on its understanding of the type of role you plan to fill or the candidate qualifications you require.

Best AI tools for workforce management

Many tasks associated with workforce management—scheduling, workforce planning, and compliance—are excellent fits for AI’s skillset.

8. Workday

Workday, a workforce management and HR tool, embeds machine learning into administrative tasks like scheduling, time and attendance reporting, payroll reporting, and performance management. For those new to developing custom automations, the table-only view may make it challenging to visualize more complex workflows. Some AI-driven reporting tools require annual configuration.

9. BambooHR

BambooHR, a cloud-based workforce management tool, leverages AI to provide employers deeper insights into employee engagement and satisfaction. The company’s Employee Satisfaction tool calculates a Net Promoter Score based on AI-analyzed feedback from surveys to help decision-makers understand where an organization succeeds in supporting employees and how it can improve.

10. Personio

Munich-based Personio uses an AI-driven chatbot designed to handle common internal questions to help HR teams save time and improve the employee experience. By automating the helpdesk experience, Personio ensures that employees receive standardized responses that align with company policy, while role-based permissions limit sharing for certain types of information.

11. Gusto

Known for its payroll and finance tools, Gusto also offers two AI-powered recruitment solutions. Its job post generator uses technology similar to ChatGPT and Google Bard to generate job descriptions that automatically include language required by state and federal law, depending on location. Gusto’s report assistant allows HR leaders to generate custom reports using natural language queries.

12. Lattice

Another cloud-based solution, Lattice focuses on providing decision-makers with granular performance management data. Its employee engagement tool relies on AI to review and analyze open-ended feedback and survey data before generating a comprehensive report and recommendations.

Best AI tools for training and development

13. Udemy

This popular online learning platform offers AI-based tools to enhance the course experience for instructors and students. Based on student interest and performance, Udemy’s content algorithm recommends personalized learning paths that HR teams can use to develop personalized employee experiences. Teachers enjoy access to AI assistance when creating assessments for coding courses.

14. Coursera

Known for partnering with elite universities to provide course content, Coursera uses AI to develop flexible, adaptive learning journeys through its proprietary Coach tool. Beyond recommending content, Coach uses generative AI to respond to simple questions, summarize lecture notes, and suggest resources. For HR leaders developing learning materials, Coursera offers a generative AI course creator that blends employer and expert content, designs a syllabus, and recommends reading materials.

Boost efficiency with Rippling’s Talent Signal

Early feedback is critical to any new hire’s success. But delivering high-quality feedback is a time-consuming challenge. Talent Signal is an AI-powered performance management tool from Rippling that reviews the first 90 days of a new employee’s work product and provides feedback on how to improve it. It provides an independent view of how a new employee is ramping, and gives managers concrete insights they can use to coach them.

The magic of Talent Signal lies in its ability to reason directly from the work product. It uses AI to review work, from specific lines of code to customer interactions, then generates a performance signal based on actual contributions. The model processes all of this work product data to gauge how well the employee is acclimating to their new role. It shares specific examples with the manager to allow for scrutiny of its conclusions, and offers recommendations for how to better support the employee.

See how integrating AI into performance management can save time, reduce manual work, and offer data-driven decision-making.

Learn more about Talent Signal

See Rippling

FAQs on AI tools for HR

Is AI going to replace HR?

No, experts do not predict that AI tools will replace either the human resources function or HR professionals. More likely, machines will gradually take over the time-consuming or highly detail-oriented tasks that prevent human employees from devoting their full attention to work that requires critical thinking, emotional intelligence, or ethical judgment.

Can AI tools be integrated into HR systems?

Yes, AI tools can integrate into HR systems through machine learning, natural language processing, and data analysis. For example, AI-driven software can automate parts of the candidate selection process by parsing resumes for keywords and minimum qualifications, scoring candidates based on a pre-set framework, and predicting potential future performance based on your organization’s existing workforce data.

How does AI help HR in decision-making?

AI helps in HR decision-making by tackling complex analyses of large data sets to identify patterns and trends. Algorithms excel at pattern recognition, are less susceptible to errors, and don’t need breaks to rest and recharge, making them efficient and accurate analysts. The time they save in reviewing information is passed on to human resources professionals, who can focus exclusively on making the best decisions for the health of an organization and its employees.

How do I decide what AI tools to use in HR?

To decide which AI tools to use in your HR systems, start by identifying opportunities for automation. Typically, these are places in your processes and procedures that require a human employee to spend large amounts of time on a rote task, such as data entry, or a repetitive one, like sending a template reminder email. Once you’ve determined the task you’d like to assign to an HR tool, search for a solution that meets your technical and budgetary requirements.

Next-generation human resources.