HR leaders are under pressure to do more with less. Budgets are tight, but efficiency, talent management, and performance expectations remain high. The solution? Artificial intelligence (AI). AI can cut time to hire by 30% to 50%, lower operating costs in compensation management by 30%, and reduce hiring bias by 25%.
This article explores 15 AI hacks for HR you can use for admin tasks, recruitment and hiring, rewards and bonuses, onboarding, and talent management. It also discusses how you can use AI more effectively in general and what next steps you can take.
Contents
15 best AI hacks for HR
Learn how to use AI for HR more effectively
Next steps
FAQ
Key takeaways
- Start small with low-risk AI tools like chatbots before moving to complex applications
- Build AI literacy in HR teams through courses, certifications, and hands-on learning
- Collaborate with IT and data teams to ensure smooth integration and strong governance
- Prioritize ethical use by addressing bias and maintaining transparency in AI adoption.
15 best AI hacks for HR
Here are the 15 best AI hacks for HR, categorized according to different HR functions where AI can have the greatest impact:
Admin tasks
1. Automate payroll and time-tracking
- How: Use AI payroll and time-tracking software integrated with your HRIS, attendance, and finance systems. These tools can help calculate pay, taxes, and deductions in real time while flagging errors or fraud.
- Tools: Consider AI-driven platforms like Rippling (a unified HR, IT, and Finance platform), Gusto, or Paychex Flex (full-service payroll and HR platforms). But before switching, evaluate your organization’s current system’s AI capabilities.
- Impact: AI saves time and reduces human error and fraud risk by validating your data and flagging anomalies. It also ensures real-time compliance with regulations, which can prevent costly penalties or fines.
2. Answer employee FAQs with AI chatbots
- How: Implement an AI chatbot on your company intranet or HR portal, or integrate it with communication platforms such as Slack or Microsoft Teams. Chatbots can learn from policies, handbooks, and past queries to answer employee questions instantly.
- Tools: Many HRIS platforms provide integrated AI chatbots, like SAP SuccessFactors HCM with Joule, Oracle Digital Assistant, and Microsoft Copilot. You can also explore platforms like Leena AI and Jinie, or you can even build a custom chatbot using Amazon Lex or Google Dialogflow.
- Impact: Providing employees with instant answers to their queries 24/7 reduces the volume of routine inquiries directed to HR and improves employee experience.
3. Use AI tagging for smart document management
- How: AI tagging tools can analyze documents, apply relevant labels, and make files easier to find and sort. For example, AI tagging can help HR automatically analyze performance reviews, and quickly search and filter documents and agreements — thereby saving valuable time.
- Tools: Consider AI-powered platforms like DocuSign Insight, Microsoft SharePoint, or dedicated AI-powered document management solutions like Eigen Technologies.
- Impact: AI tagging can improve efficiency in finding and managing HR agreements and documents. This ensures more consistent record-keeping, better compliance, and less time spent on manual document sorting and labeling.
What is the coolest thing AI can do in HR?
Imagine being able to accurately predict how your team will react to a new policy or operational change before it’s implemented. By using a ‘digital twin’ — i.e., a virtual, dynamic model of your workforce — you can create a data-rich replica of your organization’s people (including skills, team structures, and communication patterns) that updates in real time.
This sophisticated model, adapted from engineering principles, acts as a living blueprint of your company’s human capital by using AI to analyze vast datasets. These include real-time data and sentiment from sources like surveys, internal communications, and employee performance metrics.
This allows you to run risk-free simulations to test ‘what if’ scenarios. For instance, you can model the impact of a new policy or a major restructuring on employee morale and productivity, predict outcomes, and identify potential risks in a virtual environment. In doing so, you can prevent time-consuming, costly mistakes.
Recruitment and hiring
4. Streamline résumé-screening with AI
- How: AI-powered applicant tracking systems (ATS) can automatically parse and analyze résumés, match applicant skills and qualifications with job requirements, rank applicants, and highlight the most suitable candidates for your roles.
- Tools: Many ATS software platforms, such as Workday, Greenhouse, and SmartRecruiters, use AI for advanced résumé-screening. Specialized tools like HireVue and Vervoe also offer AI-driven capabilities for initial candidate interviews and assessment.
- Impact: These tools can speed up your initial screening process and reduce the time spent on manual résumé reviews. By using objective criteria to ensure accurate, consistent evaluation, they can also help mitigate unconscious bias.
5. Use AI interview assistants for transcription and scoring
- How: Accelerate the interview process with AI-driven real-time transcriptions of interviews, verbal and non-verbal cue analysis, skill-to-assignment alignment, and objective scoring based on predefined criteria. These assistants can also generate summaries and highlight key points of candidate interviews.
- Tools: Platforms like Harver, HireVue, and Vervoe offer AI-powered interviewing solutions, including scheduling, screening, video analysis, and game-based assessments. For transcription and basic analysis, you can use tools like Otter.ai and virtual meeting platforms like Zoom and Microsoft Teams.
- Impact: These tools can help recruiters and hiring managers maintain consistency and objectivity during job interviews, and provide valuable data for post-interview analysis and feedback.
6. Assess candidate success with predictive analytics
- How: Through pattern identification, AI models that analyze historical employee data alongside candidate data can predict which applicants are most likely to succeed in a particular role or your company culture.
- Tools: Look for advanced analytics modules in a comprehensive HRIS platform, or use specialized talent intelligence platforms like Eightfold.ai or Gloat.
- Impact: These tools help improve hiring quality by identifying candidates with a higher likelihood of long-term success, which can, in turn, reduce turnover and its associated costs.
How to build better prompts for AI in HR
When it comes to GenAI, the more specific, the better. For example, instead of prompting: “Write a rejection email for a candidate”, add more detail regarding the context and tone you want for the email.
Your improved prompt may sound something like this: “Write a polite, empathetic rejection email for a candidate who made it to the final interview stage but was not selected for the Content Marketing Manager role. Use a professional tone, and thank them for their time at the end of the email.” This will enable your organization to leave a better impression on candidates, which builds your employer brand.
Check out AIHR’s Gen AI Prompt Design for HR mini course to help you write better AI prompts.
Rewards, commissions, and bonuses
7. Recommendations for personalized benefits
- How: Implement AI systems to analyze employee demographics, life stages, past benefit selections, and declared preferences. This allows your company to offer personalized benefits packages that meet individual needs.
- Tools: Benefits administration platforms, such as Benefitfocus (as well as solutions integrated into broader HR suites), are increasingly incorporating AI-driven recommendation engines. Custom-built algorithms can also be developed for larger organizations (though this can be costly and time-consuming).
- Impact: Personalized benefits packages can boost employee satisfaction, engagement, and motivation. This also means better benefit use, and a stronger perception of your employer value.
Master AI hacks to propel your HR function forward
To master AI hacks and take your HR team to the next level, you must invest in continuous learning, start with simple tools, and collaborate across departments.
✅ Understand the different types of AI, including purposes and benefits
✅ Apply an AI adoption framework to transform workflows and processes
✅ Apply advanced prompting techniques and adapt to your role
✅ Learn best practices for using Gen AI safely, securely, and ethically.
Learn at your own pace with the online Artificial Intelligence for HR Certificate Program.
8. Analyze pay equity using AI
- How: Use AI to analyze compensation data across employee demographics to identify potential pay disparities. These tools factor in numerous variables (i.e., experience, performance, location, or education) to highlight unexplained pay gaps for specific groups or individuals.
- Tools: Specialized HR analytics platforms such as Syndio, Trusaic can perform sophisticated pay equity analyses using AI algorithms. Comparable options include modules in leading HRIS like Workday and Oracle Cloud HCM.
- Impact: This use of AI supports fair and equitable compensation practices, minimizes legal risks associated with pay discrimination, and builds trust among employees.
9. Automate performance-based reward suggestions
- How: Integrate AI with your performance management system to analyze employee performance data, goal achievement, and peer feedback. Based on predefined criteria and budget, the AI can then suggest appropriate performance-based rewards, bonuses, or recognition.
- Tools: Performance management platforms like Betterworks or Lattice are enhancing their AI capabilities to assist managers in compensation decisions. Some HRIS platforms with strong performance modules (such as SAP SuccessFactors) also offer this functionality.
- Impact: AI automation streamlines the reward allocation process, helps ensure fairness and objectivity in recognition, and motivates your employees by directly linking rewards to performance metrics.
Onboarding
10. Support onboarding with AI chatbots
- How: Use AI chatbots specifically designed to provide immediate support to new hires during their initial days and weeks. These chatbots typically answer common questions about company culture, policies, and IT setup, and can direct new hires to role-relevant resources.
- Tools: Similar to general employee FAQ chatbots, platforms like Leena AI can be configured for onboarding. At the same time, many HRIS solutions now offer dedicated onboarding modules with integrated AI assistance.
- Impact: Chatbots can improve the onboarding experience and reduce the burden on HR teams and hiring managers. Access to instant assistance also makes new employees feel supported and integrates them into your organization more quickly.
11. Personalize onboarding journeys with AI
- How: Use AI to create personalized onboarding paths for new employees based on role, department, prior experience, and learning style. This includes tailored learning content, relevant team introductions, and specific task assignments.
- Tools: Learning Management Systems (LMS) with AI capabilities, as well as dedicated onboarding platforms like ConnecTeam, Enboarder, or Workday’s onboarding module, can facilitate personalized journeys.
- Impact: Through personalization, these AI tools accelerate time to productivity and enhance engagement among new hires across your organization. They also reinforce a positive first impression of your company, potentially increasing its eNPS.
12. Use AI to automate training assignments
- How: AI can automatically assign mandatory and recommended training modules to new hires (as well as existing employees) based on their roles, compliance requirements, and identified skills gaps.
- Tools: AI-enhanced LMS platforms such as Cornerstone OnDemand, Degreed, or those integrated with HRIS like SAP SuccessFactors, can automate training assignments and track completion rates.
- Impact: These tools can help ensure compliance with regulatory training requirements and efficiently address skills development needs. They can also save your HR and L&D teams time on handling manual assignment tasks.
How is AI designing the future of work?
AI is shifting companies from job-based structures to skills-based talent marketplaces. By mapping employee skills, AI can match staff to projects, regardless of job title. Leading organizations like Mastercard have already adopted this approach to identify internal growth opportunities, drive satisfaction and retention, and create a more agile, flexible workforce.
L&D, talent management, and workforce planning
13. Personalize learning paths with AI
- How: Use AI to evaluate each employee’s skills, career aspirations, and performance data against your organization’s strategic needs. Then, recommend personalized learning resources, courses, and development opportunities tailored to each individual.
- Tools: Learning experience platforms (LEPs) like Degreed or EdCast use AI to curate content and suggest learning paths. Many advanced LMS solutions also offer this functionality.
- Impact: This use of AI fosters continuous L&D and career growth, which increases employee engagement and retention. This also ensures your workforce has the skills needed to handle future challenges.
14. Predict skills gaps for workforce planning
- How: Use AI-powered analytics to scan internal data (skills inventories, performance reviews) and external data (industry trends, market demand) to forecast future skills requirements and identify potential gaps in your current workforce.
- Tools: Dedicated strategic workforce planning software with AI capabilities, advanced HR analytics platforms, or even custom data science models can perform this predictive analysis. Gloat and Eightfold.ai are examples of such platforms.
- Impact: You can get the critical insights needed for effective workforce planning, allowing you to proactively address future talent needs and inform your training and development strategies.
15. Drive succession planning with AI
- How: Implement AI systems that analyze employee data (performance, leadership potential, skills, experience, and mobility preferences) to identify high-potential candidates for critical roles. The AI can also highlight areas where these candidates need further development to be promotion-ready.
- Tools: Talent management suites with advanced analytics modules (e.g., Workday, SAP SuccessFactors, and Oracle Cloud HCM) or specialized succession planning software often include AI-driven features.
- Impact: This AI application can strengthen leadership pipelines, reduce risks associated with critical role vacancies, help ensure business continuity, and support internal mobility.
Learn how to use AI for HR more effectively
To use AI for HR more effectively, HR leaders should focus on a few key strategies that unlock its full potential. First, invest in AI literacy by encouraging your team to take short courses, attend webinars, or complete certifications to build a solid foundation in AI for HR.
Begin experimenting with low-risk tools, such as chatbots for employee FAQs or scheduling assistants, to gain confidence before moving into more complex applications like recruiting or workforce planning.
Additionally, you can create opportunities for hands-on learning by giving your team dedicated time to test tools in a safe, managed environment where mistakes are part of the learning process. Stay updated by subscribing to HR and tech newsletters and attending industry events to keep pace with AI advancements and regulations.
Collaboration with IT and data colleagues is also crucial to ensure smooth integration with existing systems and maintain strong data governance. Finally, prioritize ethical use by training your HR team to recognize bias, ask the right questions when dealing with vendors, and adopt transparent practices to build trust with employees.
Next steps
When you’re ready to take the next step, there are several ways to help your team adopt AI responsibly and effectively. Explore AIHR’s certificate programs, including the AI Boot Camp for HR Teams or the Artificial Intelligence for HR Certificate Program, to strengthen your team’s expertise in AI and HR analytics. Learn to master AI prompting with resources like this guide and cheat sheet on ChatGPT for HR, which can help you quickly generate policy documents, survey questions, and other HR materials.
At the same time, identify internal use cases by brainstorming areas where AI can have the most impact (starting with simple automation tasks), and use this comprehensive list of AI tools for HR to find the tech that best suits your needs. Finally, pilot a low-risk tool, for example, an employee FAQ chatbot, to gain hands-on experience, demonstrate value, and build momentum with leadership.
FAQ
AI can automate mundane administrative tasks, such as payroll and document management. It can also streamline résumé-screening, provide interview assistance, and analyze and predict candidate success, helping you significantly improve recruitment efficiency.
Additionally, AI can personalize benefits, conduct pay equity analysis, and suggest performance-based rewards. It can also design onboarding, automate training, map career goals, and personalize learning paths tailored to individual employees. Finally, it can predict skills gaps, identify high-potential individuals, and flag potential attrition risks.
AI can free professionals from repetitive, time-consuming tasks, enabling them to focus on more strategic initiatives. This shift will likely improve data-driven decision-making and overall employee experience.
Furthermore, AI’s capabilities in predictive analytics can lead to better hiring outcomes, reduced turnover, and a more skilled workforce. However, successful and widespread adoption of AI depends on HR teams’ ability to develop AI literacy, collaborate with IT, and prioritize ethical considerations to mitigate biases and ensure fairness and transparency.
