In the fast-evolving landscape of human capital management (HCM), staying ahead means embracing innovation and leveraging technology. AI and machine learning are proving their ability to make HCM processes faster and more accurate, removing manual tasks from HR practitioners and giving them more time to focus on the big picture.
HR professionals today have a wide variety of HCM technology solutions available beyond the basics of payroll and record-keeping. Many HCM vendors offer integrated partner applications that work hand-in-hand with the company’s SOR and expand HR’s functionality. In this way, HR can choose which applications they need to best serve their organization and its business needs. From recruiting and onboarding to performance management, compliance, benefits administration, health and wellness programs, DEI and more, HR leaders now have the ability to easily increase HCM capabilities by using AI and machine learning.

How AI is Making Life Easier for HR

AI-powered HCM solutions are being used in a myriad of ways to help HR be more strategic and proactive. 

Streamline processes. AI and machine learning can automate manual, repetitive tasks and data entry, reducing errors and saving time.

Improve recruitment, selection and onboarding. AI-powered tools can analyze resumes, assess candidate fit, and even conduct initial interviews through chatbots.

Gauge employee engagement. AI can analyze employee feedback, sentiment and engagement data to identify trends and potential issues.

Personalize learning and development. AI-driven learning platforms can deliver customized training recommendations based on individual employee skills, preferences and career aspirations.

Ensure compliance and mitigate bias. AI can help ensure compliance with labor laws and regulations by flagging potential issues and providing guidance on corrective actions. Additionally, AI algorithms can help mitigate bias in hiring and promotion decisions by identifying and eliminating unconscious biases in the decision-making process.

Predict employee turnover. AI algorithms can analyze various data points such as employee performance, engagement levels and external factors to predict which employees are at risk of leaving the organization. 

Facilitate data-driven decision-making. AI can process large volumes of data and generate actionable insights to support HR decision-making. AI algorithms can analyze historical data, market trends and internal metrics to predict future workforce needs.   

Using AI to Identify the Right Solutions

The HCM technology field is crowded with many vendors and applications. How to choose what’s best for your organization? AI and machine learning can be used to create customized recommendations tailored to each company’s unique requirements. With a focus on factors such as industry, company size and existing software, AI can surface best-fit applications to meet critical HR needs. The ADP Marketplace, for example, currently uses AI-powered search and recommendation engines to enable clients to find best-fit partner solutions from the over 800 solutions they offer. The key is to provide HR professionals with greater ease and confidence in identifying and selecting these solutions for their companies.

The Need for Responsible AI

Underlying this greater use of HCM AI solutions is a fear of the technology. The headlines warn us every day of the dangers of AI when not built or used properly. That’s why any vendor offering AI-enabled solutions must commit to responsible and stringent AI principles. Before signing on with any HCM solution provider, ensure they are using AI ethically and with human oversight, monitoring, explainability and bias mitigation. Transparency is critical. For example, every ADP Marketplace partner integration has passed a thorough and comprehensive security assessment to help safeguard the confidentiality and integrity of their employee data. HR shouldn’t have to give up security to gain efficiency.
Whether it's identifying trends in employee performance, forecasting hiring needs, or evaluating the impact of HR initiatives, AI empowers HR professionals to make more informed and strategic decisions.