Opinions expressed are solely my own.
AI for HR Solutions – Introduction
Artificial Intelligence (AI) has transformed the modern workplace. Clayton Christensen, a renowned business thinker, introduced the concept of “disruptive innovation” in his book The Innovator’s Dilemma. Today, AI represents one of the most significant disruptive innovations in history. A recent study from McKinsey stated that by 2030, activities that account for up to 30 percent of hours currently worked across the US economy could be automated—a trend accelerated by generative AI. While Human Resources has traditionally relied on a personal, human-centric approach, it is now experiencing the profound effects of this shift.
Prompt Engineering
I recently watched a YouTube video from Henrik Kniberg, Chief Scientist & Cofounder of Ymnig.ai, about how Generative AI works. He shared a key phrase I have not forgotten on AI’s future impact. He stated that in the age of AI, prompt engineering, the ability to craft instructions for AI, is as essential a skill as reading and writing. Given the growing expectations for HR professionals to refine specialized skills to meet business needs, prompt engineering should be a priority. AI for HR solutions cannot be effectively implemented without learning this skill first.
With this perspective in mind, let’s explore how three organizations are leveraging AI to improve HR operations. In alignment with the theme of this article, I used AI to assist with my writing. However, several AI-generated examples contained inaccurate information or unreliable sources, requiring manual corrections, underscoring the importance of verifying AI outputs. Below, I provide real-world use cases and my insights on their effectiveness.
AI for HR Solutions – Real World Examples
1. IBM – Predictive retention using AI
What they did: IBM developed an internal AI tool to predict which employees are at risk of leaving, using performance, compensation, and external data.
How it helped:
- Saved ~$300 million in retention costs
- Enabled targeted HR interventions
- Improved retention and engagement
My Insights: Using AI to predict employees who are about to quit their jobs is an innovative use of AI. An estimated statistic from SHRM stated that turnover costs can be around 50-60% of an employee’s annual salary. $300 million in saved retention costs at that measurement would put AI impacting a large number of employees.
2. Chipotle — AI-Powered Seasonal Hiring
What They Did: Chipotle introduced an AI virtual assistant named “Ava Cado” to manage the hiring process for 20,000 seasonal workers.
How It Helped:
- Doubled applicant flow during peak hiring seasons.
- Reduced the application-to-hire timeframe from eight days to four.
- Automated candidate interactions, interview scheduling, and job offers.
My Insights: I love the creative AI virtual assistant name. Chipotle did a good job streamlining and automating a historically manual recruiting process. Seasonal rushes are a chaotic time that involves a lot of time spent screening and sourcing potential hires. This use of AI allows for recruiters to focus more time on strategic functions, such as hiring the right candidate, than on administrative functions.
3. Global Biopharma Company – AI Enhanced Incentive Compensation with ZAIDYN®
What They Did: A prominent biopharmaceutical company partnered with ZS to implement ZAIDYN® Field Performance, an AI-powered analytics platform. This initiative aimed to personalize and optimize incentive compensation plans for their field sales teams.
How It Helped:
- Personalized Incentive Plans: Leveraged AI to tailor incentive compensation reports, aligning them with individual performance metrics and market dynamics.
- Real-Time Insights: Provided sales representatives with immediate access to performance data, enabling timely adjustments and goal tracking.
- Enhanced Managerial Oversight: Equipped managers with tools to monitor team performance, identify trends, and make data-driven decisions to motivate and guide their teams effectively.
My Insights: The most interesting use of ZAIDYN, an AI-powered analytics platform from the Global Biopharma Company, was to tailor real-time incentive compensation plans to performance metrics and the market. It can be time-consuming for managers to manually analyze employees’ performance metrics. This is a clear and efficient way to help employees understand real-time where they are with an AI-powered personalized plan to meet performance goals and compensation incentives.
AI for HR Solutions: Conclusion
In conclusion, AI is here to stay and is making an immediate impact throughout the Human Resources industry. It will be interesting to see how other companies continue to leverage AI to create innovative Human Resources disruptions. As AI-powered Human Resources becomes more mainstream, professionals must embrace this new technology to stay competitive in a rapidly evolving workplace.
