For HR teams in particular, integrating AI with your online HR software could be a game changer. From deploying predictive AI to identify high-cost health and benefits claimants to leveraging generative AI to automate job description writing, there are plenty of functions AI can enhance in the HR department.

The question is, can it contribute to a happier workforce? A whopping 51% of HR professionals use AI for people analytics. Understanding how your employees perform and respond to specific tasks is the key to fostering a productive team.

With this in mind let’s have a closer look at how AI is transforming all areas of online HR software.

How Is AI Changing Online HR Software?

While the adoption of AI tools has been slow in the HR sector, the introduction of GenAI technologies has begun to transform all aspects of online HR software.

In a remote-facing HR setting, investing in an HR software that is employee-driven is essential. For HR teams unable to interact with their employees in a face-to-face setting, it has never been more important to choose HR software that offers seamless communication, personalises remote employee experiences and offers 24-hour support.

“Executive teams are looking to HR to be a deeper, more insightful partner throughout the business, AI makes this future real.” say experts at Boston Consulting Group. “With HR continuing to shift its focus from administrative work to helping lead the company-wide strategic transformation, AI technology becomes a vital resource to upskill team members and unlock value.”

Here are just a few ways AI could transform online HR software in 2025 and beyond.

Personalised Employee Experiences and Engagement

One of the biggest advantages of AI-powered online HR software is its ability to personalise the employee journey from the ground up. 

Integrating AI into your online HR software allows you to analyse performance data seamlessly and track employee behaviour and engagement patterns to help enhance training, develop customised learning paths and improve their experience in the workplace.

Using interaction data, such as an employee's participation in a slack channel, chat response time and behaviour in team meetings, AI-powered HR tools can even flag early signs of burnout or disengagement, allowing HR to intervene proactively to reduce absenteeism and improve workforce retention.

Taking employee engagement one step further, AI tools can also help HR teams provide 24/7 chatbot support, such as replying to common employee questions and suggesting development opportunities. This frees up HR staff members to focus on other complex tasks while ensuring that employees feel supported in their role.

AI tools are improving the employee journey by providing 24/7 chatbot support for HR-related questions and suggesting personalised learning and development opportunities, leading to better decision-making based on workforce data.

Smarter Recruitment with AI-Powered Hiring Tools

Smart recruitment lays the foundation for a powerful workforce. AI is revolutionising the recruitment sector by making it faster, more accurate and more efficient. 

Online HR platforms can now leverage AI tools to scan CVs, rank candidates based on their skill sets and even filter out unqualified applicants.

For roles with a large number of applicants, AI speeds up the selection process. Using natural language processing (NLP), AI can even analyse video interview transcripts, cover letters and email interactions with candidates to establish soft skills, personality traits and communication capabilities.

In fact, according to experts at Hirebee, AI-driven interview analytics can increase hiring accuracy by up to 40%.

AI doesn’t just enhance recruitment, onboarding has seen great success, too. AI applications can automate administrative onboarding tasks, use chatbots to give new hires support and even customise the onboarding journey for each role and employee.

Transforming Performance Management and Retention

AI allows HR departments to automate their performance management in a number of ways.

With the ability to set data-driven benchmarks and automate performance reviews, HR teams can use AI data to help define clear performance goals and highlight areas for employee improvement with ease.

AI-powered performance management offers HR teams a 360-degree assessment of their employees. These assessments provide a holistic picture of employee performance. Gathering a comprehensive collection of employee data from all angles that taps into feedback from managers, peers and self-evaluations. 

This helps HR teams identify patterns on the spot and come up with personalised performance plans to improve productivity.

Harnessing the power of AI, and making informed decisions about succession planning, promotions, and staff restructuring has never been easier using data sourced from 360-degree performance reviews.

Implementing AI in Your Own Online HR Software 

Now that we’ve covered the benefits of implementing AI tools into your online HR strategy, let’s take a look at how to implement the technology into your current approach:

• Strategise & Plan: Before you introduce AI-powered tools, you must first assess your current approach to HR and highlight the areas that need to be improved. For example, if recruitment is struggling to single out candidates from a popular job advertisement, you may want to consider an AI application that is able to scan applications automatically.
• Educate Your Team: AI adoption doesn't happen overnight. It’s essential to engage your team from the beginning and host training sessions on any AI software you install. This ensures that the process of implementing AI into HR runs seamlessly.
• Engage Stakeholders: Work with internal partners and stakeholders from the beginning of your AI journey to harness collective insights. A positive experience using AI to enhance HR could inspire key stakeholders to invest in similar technology to enhance other areas of your business, too.

Wrapping Up

AI will continue to revolutionise online HR in 2025 and beyond. With the ability to enhance employee support, improve smart recruitment and manage talent effectively, AI contributes to a happier, more productive workforce.

By Dmytro Spilka

Keywords: HR

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