AI ensures that computers perform a task that requires human intelligence. Machine learning and deep learning algorithms power computers, making them think like humans. Human resource management has positively changed in the past years due to technological evolution.

Artificial intelligence has had its own contribution in reshaping employee recruitment, management and engagement in organizations.

Today, AI helps support HCM functions, from assessment of employees up to their retirement. This article covers different aspects of AI in HCM and much more:

  • How AI is Changing Human Resources with HCM
  • Definition of HCM
  • AI in Human Capital Management
  • How AI can change or improve HCM
  • Key Takeaways

Definition of HCM

Human capital management is a set of practices closely related to people resources management that has experienced considerable transformation due to AI. HCM is crucial in recruiting, training, and selecting and developing employees’ talents in the workplace.

Its main focus is on the organizational need to provide particular competencies, also encompassing the following categories: acquisition of work, management of workforce, and workforce optimization. 

AI in Human Capital Management

AI in HCM uses raw data to assist in natural language processing (NPL), and deep learning to capitalize on human resource tasks. Natural language processing enables employees to make use of virtual assistants for faster communication without bugging human resource teams.

The foundation of this modern cloud-based HCM resulted from human resource information systems and human resource management systems, which were used in the 80s. In addition, the use of AI in HCM has consolidated enormous amounts of contrasting human resources data points from across the firm into a single, centralized solution.

It has simplified data, modifying it into a format that is easy to read. This data can be used to understand the relation of employees in their workplace and it makes it easy to predict the business’s future performance from a human capital point of view.

None of this would have been possible without data labeling, which enables machines to comprehend real-world data. For example, because of accurately labeled data, today we’re able to convert hardcopy content into digital files, also known as optical character recognition.

How AI Improves HCM

Now when we are more familiar with how AI affects human resources, let’s take a look at the specific areas of HCM, where AI comes in handy.

  • Talent Acquisition

A great deal of processes that depend on human recruiters are automated when artificial intelligence is used to acquire talents. It makes the hiring of employees more purposeful, data-driven and crystal clear.

AI has had a significant impact on recruitment as it has helped recruiters use simple keyword searches to identify the matches between the job profile and the candidate’s profile. The time used to look for candidates is greatly reduced as recruiters can find perfect matches faster using machine learning algorithms that can crawl through resumes searching for target skills and experience.

In today’s world, AI can be of significant help to companies, as advanced models also help in predicting if the candidate is likely to accept a job offer. What is more, AI  and computer vision technology are being used today to capitalize on time-consuming tasks that pertain to talent acquisition such as interviews and candidate screening.

  • Improved Personalization

AI has greatly impacted HCM in such that HR professionals can now detect the patterns of their employees’ behaviors in the workplace. All that is possible because of what image segmentation and object detection algorithms have come to offer.

For example, by analyzing employee behavior patterns, HR can decide if they are satisfied with the work environment or whether they feel pressured. 

  • Learning and Development

AI can provide employee training and learning program offerings based on their roles and experiences. It is also helpful to trail newly promoted or shifted co-workers. This helps them gain the relevant skills that fit their new position, leading to sentiment and engagement improvements. 

  • Performance Management 

Employee bias is not a new phenomenon and is still an issue a lot of companies face. AI’s intervention in HCM increases the chances for fair performance management and equal treatment, as a consequence.

AI-powered technologies are designed to eliminate prejudice during the performance review processes. This also provides an increase in productivity, employee engagement and job satisfaction. 

Key Takeaways

Human capital management (HCM) has undergone a weighty shift, which has led to the transformation of how organizations are running worldwide.

New technologies such as artificial intelligence and machine learning have greatly changed how people live, work and communicate. In this day and age, AI is used in streamlining various human resources functions such as talent acquisition, learning and development, performance management, employee personalization and so forth.

By evaluating candidates’ characteristics, AI can predict the organization’s high performers in the future, who will remain in that job for a long period as well as the ones likely to receive promotions. AI  in talent management has helped organizations modernize their processes, improve functional efficiency and make more informed decisions that impact the bottom line.

With these highly developed capabilities, AI has helped the HR team consolidate big amounts of unrelated data and build meaningful insights, which facilitated in creating a conducive environment for employees to communicate and collaborate in every decision. 

Melanie Johnson

Melanie Johnson, AI and computer vision enthusiast with a wealth of experience in technical writing. Passionate about innovation and AI-powered solutions. Loves sharing expert insights and educating individuals on tech.