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The impact of AI on business models and workforce demographics are profound. Because AI creates new opportunities while meeting the expectations of customers and employees.

According to a research study, it is anticipated that the HR technology market will reach $34 bn by 2021. The advancement of HR technology is transforming the way people work and are supported.

As cognitive computing and AI gets deployed across organizations, the competency systems must get strong to enjoy the AI benefits at its fullest potential. Competencies like knowledge, skill, ability, and other attributes are required for the successful performance of jobs.

This blog emphasizes on AI investment for HR processes. It throws light on how and what HR leaders can do before and while investing in AI for across the talent management cycle and HR related functions. Let us see how chief human resource officers (CHROs) or HR leaders can reinvent human resource paths to manage change driven by AI.

AI in HR processes:

Every aspect of business activity can get transformed by Artificial Intelligence (AI). AI in HR processes is becoming the norm for many organizations to gain a competitive advantage by transforming human resource (HR) department.

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The executive interviews reveal that AI is effective in HR processes because it attracts and develops new skills, improves the employee experience, provides analytical decision support, solves business challenges, and makes more efficient use of HR budgets.

To get the most from AI in HR processes, it is critical to strategize the digital transformation journey. Before that, it is also necessary to understand the roadblocks while transforming.

Implementation of AI in HR processes: Roadblocks

Though AI in HR processes is found useful, the implementation has not yet reached a high score owing to roadblocks, which could be removed over time. The main two roadblocks are briefed as follows.

The right mindset

In the HR tech transformation journey, it is all about having the right mindset followed by skills and capabilities essential for AI implementation. The HR leaders must be curious and take the responsibility to upskill themselves. They must have a detailed overview of the HR tech landscape.

Your competencies must get clearly defined, remain consistent across the business, get differentiated by function, role, and level, and updated regularly. It is also necessary to understand employees’ competencies and skills for job opportunities and effective talent management.

The fear of increased transparency

It is an interesting fact that a few of the CHROs are resistant to digitization. As they value power, they fear that it may dilute their authority while influencing decisions. On the contrary, the use of technology brings conversations to a large audience and builds more trust. This fear should fade to embrace technology.

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Moving forward, let us see how to manage change driven by Artificial Intelligence at the level of human resource management.

Leveraging AI for HR functionalities

The future-proofing of HR leaders is still sporadic or not yet started in several organizations. It is high time that HR professionals understand the fact that HR tech is fundamental these days. It is time for all organizations to invest in HR professionals to make them future-ready.

‘Digitization of HR is not an IT or HR project. It is a corporate initiative’, says Ratan Chugh, People Information Officer at Times Internet.

Competencies are critical to leverage AI because every application is dependent on the ease of scaling and standardization. Poor decision-making due to low competency would cost a lot for an organization.

For instance, let us consider the recruitment process.

The volumes of candidates applying for a job has drastically increased due to online access to the information regarding the job market. With this volume of applications, it is difficult for humans to screen all the attributes of all candidates objectively within a reasonable time frame. Automation is very essential in this situation.

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But automation is not as easy as said. Though the process is straight-forward, the details for automation are complex. The complexity runs during identifying a list of jobs, corresponding job requirements, worker attributes, and ranking of prospective candidates to forward the applications for final human decisions.

Selection result without an accurate knowledge of skills required for a job might not end up with the right recruit for the organization. A strong competency framework alone is trustworthy in selecting high performing employees. Job analysis to identify competencies is required prior selection even in the traditional recruitment process. Otherwise, it hinders the decision-making process.


The first step for CHROs who are looking forward to deriving the benefits of AI for their organization is to evaluate their organizational competency. AI is used to augment HR approaches and complete HR tasks like a person with an analytical mind. The point is scale and speed. AI delivers more than a human in a given time.

All that is needed is the competency to leverage AI and wise investment to derive the right benefits.