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AI And Automation In HR: The Changing Scenario Of The Business

  • JoshiShubham 


The automated technological enhancement and the edge of AI (Artificial Intelligence) change the scenario of the business like never before. It eliminates the heavy workload of employers and employees. Like due to the implementation of technological things, they can now enjoy their work rather than take the stress of the compilation of the job.

What Is The Meaning Of AI?

Artificial Intelligence is a computerized technology that works like a human being but eliminates human errors from the operations. It reduces the workload of the employees and employers. Everything is handled by internet-based techniques rather than manually. Thus, it saves time and labor costs but provides a hundred percent accuracy in each operation conducted by the human with the help of computerized AI technology.

What Is The Meaning Of Automation?

Automation contains almost every technology that reduces the workload of human beings. Like if we talk about the human resource department of the company, then automation helps the HR admin to secure the information by saving the file into an integrated database that can help them in the payroll process for the workforce. It saves each file automatically in one central system. Thus, it reduces the workload of humans.

What Is The Difference Between AI And Automation?

If you have not enough knowledge about both the terms, i.e., artificial intelligence and automation, then you also think that both are the same because the main feature of both terms is to reduce human interventions. But that is not true!, following are the differences between AI and automation.

AI (Artificial Intelligence) Automation
AI is a science of technology that solves the more challenging things quickly; even humans can not touch the best solution to the problem that AI can do for them. Automation uses technology that needs no human intervention or less human intervention to complete the task.
AI has the efficiency in doing work like humans, learning like humans, and even thinking like humans. Automation has the efficiency to reduce the workload of human beings.
AI basically eliminates human work because it works as humans. Automation consists of less human work because it needs human’s command to do anything.

How Can HR Uses AI And Automation To Transform Workplace Environment?

The human resource department needs AI and automation to reduce the workload and retain the employees for a more extended period of time. Following are the HR functions that are simplified with the use of AI and automated technology.

Recruitment And Onboarding 

The primary task of the HR department is to recruit the best match for the vacant place. Earlier, they used to select people after analyzing the whole resume manually. But now, they use AI-based automated software called ATS (Applicant Tracking System). With the help of the software, they can classify the eligible candidate’s data automatically in just one click.

Onboarding comes into the picture after selecting the employee. The older manual onboarding process was time-consuming and also not that effective. The technological enhancement simplifies the onboarding process and allows the newly joined employee to change or edit his/her personal and professional information by login into the personal application ID.

Employee Experience 

Here I am not discussing the working experience that your employee has. I am talking about the experience of the workforce using HR technology. A better working experience means the more satisfied the workforce. Employee satisfaction is the main ingredient when we are talking about the retention rate.

Everything is synchronized with each other, like the better working experience of the employee means satisfied employees, satisfied employees stay in one organization for a more extended period of time, the retention rate of the employees increases the goodwill of the firm and performance of the workforce, and improvement in employee’s productivity means enhancement the profitability of the business. Thus, it is necessary to implement technological weapons for a better employee working experience, which is ultimately beneficial for the company’s growth.

Attendance Management 

Automation and AI technologies are beneficial to any industry, especially in the attendance management system. Earlier, the human resource department took attendance of the employees manually, which was hard to keep for a longer period. But the AI reduces the workload of keeping attendance. Nowadays, the biometric punch method or any automated method tracks the real-time working hours of the workforce. It tracks punch-in, punch-out, early going, late coming and mispunch of the employees and keeps the document in an integrated HR database until the manager deletes it from the system.

Salary And Leave Management 

An HR manager must keep the data of employees’ leave; he/she can use it at the end of the month while calculating the salary of the employees. Not just for the salary calculation, leave management is essential for analyzing the performance of the workforce. It is necessary to keep a record of the real-time working hours of the employees for calculating the KPI (Key Performance Indicators). An HR admin compares the performance of the employees with his/her past performance.

Learning And Development

It is essential to the human resource department of the employees to prepare the reports of employee development, and for enhancing the knowledge of the employee, they have to arrange learning sessions for them. They can organize the guest talk, re-training session, doubt solving session, etc., to develop the employees. AI and automation remind them after a specific time to check the development of the employees.

People Analytics 

Analysis of the employee’s job is essential to improve their performance. After selecting an efficient workforce, the company can not touch the estimated profit level; then, there may be a fault in the employee’s work or the company’s management. Thus, analysis of both is essential to increase the profitability of the firm.

What Is The Impact Of AI And Automation In An HR Department?

There is a considerable impact of artificial intelligence and automation in the human resource department. It changes each operation and eliminates the paperwork from an organization. Below listed are the three main impacts of both technologies in the HRD;


It allows the human resource department to work according to their convenience. Like AI is acting like a human and also thinks like a human; thus, it does not need anyone to operate it and continually watch on it. So, the humanization system is reducing the workload of the HRD.

Lifelong Learning 

After implementing AI and automation for the betterment of the company, they must accept further updates in the technology. So, the learning of the system is not a one-time act; it is lifelong learning.

User-centric Design

AI and automation can also be customized. If the company wants additional features in technology or computerized base software, they can make it according to their choice. Thus, it is a user-centric design which is the primary benefit of the technology.

What Is The Future Of AI And Automation In An HRD?

As we know, the advanced technology will provide lots of benefits to the employees and employer both; we can say that it reduces the workload of them and allows them to enjoy their work rather than taking the stress of the work.

Employee Analytics 

Employee analytics is essential to improve their performance. It is necessary to identify the loopholes that affect the company’s growth and employee performance. With the help of performance measurement, the human resource department identifies the mistakes of the employee, and according to the report, they can watch over the particular weak point of the workforce and help them to grow.

AI and automation help them to classify the lacking points in employees’ performance through which they can improve their productivity and the company’s profitability.

Digital HR And HRtech

Analytics of the employee’s performance, their growth, company’s growth, etc., is essential to know. HR analytics plays a vital role in the digital age. HR technology helps the human resource manager to do more with lesser efforts. It allows the employer to handle each operation easily and maintain the data automatically without human errors.

Stakeholder Management

AI and automation manage the stock of the company in the NSE and BSE stock markets. The higher price of the stock means the white side of the company, while the lower cost of the stock shows the dark sides of the company. The use of the technology improves the profitability of the firm and attracts investors to invest more in a company’s stock.

Strategic Workforce Planning 

The advanced technology allows the HR department to enhance the planning of the workforce. It clarifies the role of the individual within the workplace and also explains whom to report. It maintains the workflow on the premises and keeps the workforce in the discipline.

Employee Engagement 

The use of artificial intelligence and automated technology increases the engagement of the employees. It reduces the workload of the employees and allows them to work smartly, with less effort. See! Hard work is essential but working shabbily is not acceptable in a race where everyone wants to win.

Increases Performance 

The technology used for reducing the workload of the employees and employers. It allows them to do more with few efforts; thus, it increases the performance of the employees and enhances the profitability of an organization.


From the above discussion, we can state that artificial intelligence and automated technology change the whole scenario of the human resource department and reduce the paperwork,  which is a time and cost-consuming method even not that accurate. So, it is obvious to say that it increases the profitability ratio of the company.