Importance of Artificial Intelligence (AI) in HR Software for Modern Businesses

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AI in HR Software Business

The first thing that comes to everyone’s minds whenever we hear the word “Artificial Intelligence” is the movie – “The Terminator” starring Arnold Schwarzenegger. It is undeniable that artificial intelligence is advancing progressively. According to the recent surveys done, 83% of respondents strongly believe that Artificial Intelligence in modern businesses is a strategic priority for their businesses in today’s time. According to research done by IDC, the market for AI is expected to be developed from, $8 billion in 2016 to $47 billion by 2020, affecting all business practices across virtually every industry.

One of the areas in which Artificial Intelligence has been implemented and was found beneficial is the “Human Resources and Recruitment”. All the organizations which have been using AI hr software for recruitment have touted the advantages of integrated functions, For example, Recruitment to be seamless.

With the modern specialized tools, Artificial Intelligence has been changing the game of recruitment. The overall growth of AI in HR confounds everyone. After all, doesn’t the human resource department call for more human-like functions in the industry. Artificial intelligence is the perfect tool to outsource administrative tasks in HR and elevate the business’s efforts throughout the organization.

Given are the 3 basic ways HR department can use Artificial Intelligence:

Benefits of AI

1. Candidates’ Screening

Artificial Intelligence helps organizations to test the candidate’s interaction with AI tool. This magical tool answers all the common questions either related to the student’s profile or the job’s profile and an evaluation of these answers help the recruiter to assess the candidate in the quickest way possible.

2. Human Bias Reduction

Humans tend to stereotype and make decisions based on, gender, health, and ethnicity and so on. On the other hand, AI can be programmed to ignore a candidate’s background. While at the same time, this can be ineffective for an organization where candidates want to have a strong physical structure. Biometrics will definitely be helpful in analyzing the health parameters of the candidate.

However, there are few jobs that require only men or only women candidates. For instance, for safety reasons, jails, as well as prisons, often make sure its in-charge officers are of the same sex as the inmates. This leads to gender-specific hiring openings. In such cases, the AI is also programmed to consider the gender of the candidate.

3. Candidate Engagement and Post-Offer Acceptance

Statistics validate that around 50% of the applied candidates don’t get any type of communication from the employer. This is usually due to the voluminous intake of applications which result in the inability to reply back. AI automates this process and also the process that starts after candidate’s selection.

The AI software is best used for maintaining a good relationship with the candidates right from the stage of pre-orientation to mailing the offer letter. Basically, recruitment is all about eliminating. No company searches for who might be the best for their company, but they try to eliminate the worst through conduction of interviews, tests and group discussions.

But the question here is, how does a machine do this? On what basis does it decide whether the candidate in front of it is not suitable for the role?


FAMA, founded in 2015 uses natural-language processing (NLP) techniques for conducting web-based searched on a candidate. Natural language processing helps a lot in scanning the past activities of the candidates by referring their blogs, news archives and the person’s social media site for possible signs of bigotry, illegal drug use and so on. It also keeps in a record the positive attributes like scholarship, volunteering and any other sort of competition participation.


Interviewed draws applicants for customer-service jobs. Here, the algorithm has the strong ability to understand empathy through the assessment of what the company co-founder Chris Blake calls “softer skills”. The robot observes speech patterns among individuals so that any sign of distressed emotions can get noticed.

However, the promise of AI in improving the quality of hiring doesn’t lie in its ability to utilize data in normalizing the process of matching candidates’ knowledge and skills and the requirements of the job, but also for the proper flow of data from both the client as well as server side.

This improvement in candidate matching is predicted to lead more towards productive employees who are less likely to turnover. Early results are extremely promising. The organizations that have brought AI-powered recruiting software into practice have observed their cost per screen reduced by 75%, their revenue per employee improved by 4%, as well as their turnover decreased by 35%.


AI is a great platform whether it is in the initial processor while recruiting or afterward, for the current scenario with the bulk intake of applications. AI Human Resource software continues to change the world of work, & employees in order to get engaged in life-long wisdom.

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