Five ways AI technology is shaping the future of human resources
Updated 18th February 2025 | 6 min read Published 11th June 2024

Artificial intelligence (AI), and AI technology, is transforming every industry - and Human Resources is no exception.
With AI's ability to streamline processes, analyse huge chunks of data and automate repetitive tasks, there are a number of benefits for HR to obtain.
As such, there is an increasing rise in AI within cloud HR software; it's being adopted by HR teams around the world to take their already cloud-based solutions to the next level.
HR teams will always play a vital role in people management, but AI technology can now take care of the time-consuming admin, enabling you to focus on those all-important people tasks.
In this blog post, we’ll explore examples of AI in HR, and how they can revolutionise your approach to workforce management, talent management and how your HR department operates on a day-to-day basis.
1) Employee development is easier using AI tools
Do employees have certain career goals, personality traits or skill sets?
AI can strengthen your employees' continued professional development (CPD) by using this information to identify suitable mentors and training.
For instance, an employee may aspire to become a site manager within a few years.
Cloud HR software, equipped with AI technology, could complete a comprehensive skills audit, identifying training courses for career development, or experienced leaders with relevant expertise and knowledge to pass on.
In the future, AI could potentially analyse employee skills, experience and career ambitions, suggesting the steps they need to take to achieve their goal.
Additionally, if someone wants to change their career and move departments, AI could assess what skills the employee has a suggest suitable roles or recommend training programs to bridge the gap.
2) Spot disengaged employees and quickly take action
One of the most powerful applications of AI technology in cloud HR software is its ability to detect signs of employee disengagement and burnout.
While managers may notice and act on individual warning signs, AI can filter through large amounts of workforce data to spot patterns and trends in behaviour.
With AI technology, the software could monitor factors such as changes in productivity or attendance, alerting managers to potential issues before they escalate.
Let’s say your HR software flags high levels of absenteeism in one of your teams.
You could sit down with them to better understand their perspective, uncovering:
- Are they overworked?
- Are certain individuals struggling with their mental health?
- Is ineffective leadership to blame?
These conversations enable you to tackle the root of the problem.
AI does the complicated and time-consuming correlations, empowering HR leaders to make data driven decisions that have a greater impact on their employees' well-being.
3) HR chatbots can improve employee experience
HR professionals receive a constant flow of questions from staff.
We’re not suggesting chatbot AI tools can replace human contact, but their natural language processing capabilities offer an effective way to answer the more simple questions quickly.
AI chatbots can handle a wide range of topics such as:
- Company policies
- Benefits
- Annual leave
- Payroll
Rather than taking your time away from more important work, chat bots are great at answering employee inquiries quickly, whenever needed.
If the question is too complex for a chatbot AI tool, processes can easily be put in place to escalate it to a human.
4) AI generated onboarding videos
HR leaders can harness the power of AI-generated onboarding videos to transform how they welcome and train new employees.
By using generative AI, they can create personalized, engaging content that adapts to the needs of each hire, while remaining 'on brand' across the board.
These videos automate a typically time-consuming part of HR processes, and make sure every employee gets a clear and cohesive introduction to company policies, culture, and expectations. It's an efficient, scalable solution that can add real value to HR teams.
5) Automating the recruitment process
AI is revolutionizing the recruitment landscape by automating key steps in the hiring process, saving HR teams significant time and effort.
From CV/resume screening to conducting initial candidate screening, AI can handle repetitive HR tasks with precision, allowing HR teams to focus on more strategic decision making.
By streamlining the entire hiring process, businesses can identify top talent faster and ensure a consistent, unbiased approach to recruitment. This enhances efficiency and improves the quality of candidate sourcing, empowering HR departments to build stronger, more dynamic teams.
The ever-evolving world of HR software
Cloud HR software is seeing rapid change, and the particular rise in AI tools for HR shows no signs of slowing.
In our recent podcast, Julian Musson, Senior Product Director here at IRIS Software Group and Kinsey Li, Associate Director of HR Analytics at EY, talk about all things AI in HR and how it will revolutionise the way we use employee data.