Illustration of a woman using a laptop with AI, data, and HR icons, symbolizing the use of AI technology in HR tasks.

How to use AI in HR: 5 Examples for 2025

Tools | Mar 25, 2025 by Iliana Deligiorgi, 8 min read

AI in human resources is growing. During a 2024 survey, just about half of the surveyed HR reps said that using AI to support HR had become more and more of a priority in the last year. And research by the same organizations suggests that adoption has simply kept rising since that survey.

There are reasons to explain this upward trend. AI makes it easier for HR to work. With systems like AI-driven recruitment tools and predictive workforce analytics, companies are using artificial intelligence to speed up operations and refine decision-making.

In this article, we’ll elaborate on key areas where AI is making an impact, practical examples of how HR teams can use AI, the rise of generative AI in HR, challenges and ethical considerations, and resources for upskilling in AI-driven HR.

What does AI in HR mean?

AI in HR refers to the use of artificial intelligence technologies—such as machine learning, natural language processing, generative AI, or automation—to optimize various HR functions. These technologies help HR teams handle repetitive tasks, analyze vast amounts of data, and provide personalized employee experiences.

Why AI is Transforming HR Operations

HR teams deal with large volumes of data and complex decision-making processes. AI helps by automating routine tasks, coming up with workforce insights, and enabling HR professionals to focus on strategic initiatives.

Benefits of AI-Driven HR Processes

AI maximizes efficiency, reduces human bias, and improves the employee experience. As it automates administrative tasks, AI frees up HR teams to focus on employee satisfaction and strategy. It also helps organizations make data-backed decisions and maintains fairer hiring practices, better workforce planning, and more personalized career development opportunities.

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The Role of AI in HR: Key Areas

AI is reshaping HR by automating processes, improving decision-making, and creating more personalized employee experiences. AI helps HR teams work more efficiently while improving outcomes for both employees and businesses. These are the key areas where AI is making a significant impact:

Recruitment and Talent Acquisition

Finding the right talent is one of the biggest challenges for HR teams. That’s why, according to a survey of more than 1000 professionals, 65% of companies use AI for their hiring process in 2025. AI simplifies recruitment by drafting up job descriptions, automating resume screening, ranking candidates based on job fit, and even conducting initial interviews through AI-powered chatbots. Plus, predictive analytics helps hiring managers make data-driven decisions, reduce bias and ultimately improve hiring efficiency.

Employee Engagement and Retention

A bad hire can easily cost 30% of an employee's first year earnings. So, retaining top talent is just as important as hiring the right people when it comes to cost-savings. AI-driven employee sentiment analysis helps HR teams observe enthusiasm and identify potential issues before they grow worse. AI also enables personalized career development plans because generative AI can draft them up with the information they have on each employee.

Performance Management and Analytics

Some AI-powered tools can track goals, offer automated feedback, and predict potential performance challenges. At the same time, workforce analytics tools help HR leaders predict future talent shortages so they can start their workforce planning ahead of a gap. So, these AI tools might check how the seasonality of a company has affected its workforce, and start predicting how many roles the company will likely need in the future.

Learning and Development

AI can help with employee training by offering personalized learning experiences. Adaptive learning platforms adjust content based on an employee’s progress and learning style, and make training more effective. Plus, AI-powered mentorship matching connects employees with mentors based on skills, career goals, and learning preferences.

The best way to push customized, AI-generated courses is with a specialized LMS tool. AI still has some drawbacks—it can make things up and contradict your knowledge base—so it's best to rely on specialized tools.

HR Automation and Compliance

68% of financial firms consider AI a key priority for risk management and compliance. AI automates repetitive HR tasks such as payroll processing, benefits administration, and document management. AI-driven compliance monitoring also makes sure that companies stay up to date with labor laws and regulations. The essence is: Each time there's a regulatory change, you can tweak it in your HR tool and see how compliant you are now with that new regulation. This is especially helpful when assigning benefits (and staying compliant).

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How to Use AI in HR: 5 Practical Examples

In this section, you’ll find some practical examples of how AI is being used across different HR functions. Many of these desired outcomes require combining many AI systems, like HR software, LMS platforms, and a couple of generative AI tools. So, when you're shopping for your next AI HR tool, make sure it can integrate—maybe via a public API—with other systems. These are some good, practical examples of what AI can do in HR:

1. AI in Recruitment and Hiring

AI-powered Applicant Tracking Systems (ATS): AI-driven ATS platforms automatically sort and rank candidates based on job requirements.
Resume screening and Candidate ranking: AI analyzes resumes and matches candidates to job openings using natural language processing and predictive algorithms.
AI chatbots for candidate engagement: Chatbots handle initial candidate interactions, answer FAQs, schedule interviews, and send real-time updates.
Predictive analytics for hiring decisions: AI analyzes past hiring data to predict candidate success, which helps recruiters make informed decisions and reduce turnover.

2. AI in Employee Engagement and Retention

AI-Driven employee surveys and Sentiment analysis: AI-powered tools analyze employee feedback and sentiment from surveys, emails, and communication platforms to determine engagement levels and potential concerns.
Personalized career development plans: AI customizes career growth recommendations based on employees’ skills, interests, and past performance.
AI-powered internal mobility tracking: AI identifies employees ready for new roles within the company by analyzing skills, experience, and career progression, in a way that supports internal promotions.
Generative AI for employee communication or policy generation: AI creates personalized messages for employee recognition, feedback, and internal announcements. AI can also generate a policy handbook. Companies who need an HR policy generator should rely on a specialized tool to limit their exposure to hallucinations. You won't want an AI making up random details about your company!

3. AI in Performance and Workforce Analytics

Predictive performance: AI analyzes work patterns and historical data to predict future performance trends, that can help managers proactively support employees.
AI-based goal tracking and feedback tools: AI-powered platforms track employee progress on objectives, provide real-time feedback, and suggest areas for improvement.
AI-driven workforce planning and forecasting: HR teams use AI to predict future talent demands and prevent skill gaps.

4. AI in Learning and Development

Personalized AI-driven training programs: AI customizes learning experiences by recommending relevant courses that match what the employee needs at the moment. Some LMS platforms can even identify those gaps and assign the courses with a few clicks.
Adaptive learning platforms: These platforms use AI to modify training modules in real time so that they can address different learning speeds and styles.
AI-powered mentorship matching: AI pairs employees with mentors based on shared skills, career goals, and professional development needs.

5. AI for HR Automation and Compliance

Automated HR document processing and document summaries: AI scans, categorizes, and summarizes HR documents, which reduces administrative workload and improves document management.
AI for payroll and benefits administration: AI automates payroll calculations, tax deductions, and benefits distribution. Payroll software for startups, combined with HR software for benefits administration, handles it all in one quick step.
AI-driven compliance monitoring: You can set up an AI to continuously monitor labor laws, company policies, and regulatory changes to keep HR teams informed and manage legal risks. But since AI is prone to hallucinations, it's still a good idea to supervise whatever the AI is reporting back.

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AI in HR: Challenges and Considerations

There’s always two sides of everything. While AI maximizes HR efficiency, it also brings challenges that organizations must carefully deal with.

Hallucinations and Repetitive Content

This is a widespread problem. AI tools which are not specialized for HR might come up with very convincing text that, still, makes no sense for your business. That's the primary reason why we recommend you use specialized HR policy generating tools, specialized LMS systems for course generation, and an ATS that's integrated to the onboarding workflow. That's the best way to cut back on the downsides that hallucinations or inconsistencies will bring about.

Also, candidates who suddenly realize every company is answering back with the same email, or who detect a low-effort attempt at communicating with them, will possibly dislike the experience. AI can get repetitive, and companies who want to protect their employer brand should be cautious of just sending out bulk messages which prospects or candidates will read out and say: “They really didn't care about my profile, and they just automated the whole process.”

Ethical Concerns and Bias in AI

One of the biggest concerns with AI in HR is bias. Since AI models learn from historical data, they can unintentionally reinforce discrimination in hiring, promotions, and performance evaluations. If past hiring data contains biases, AI may continue favoring certain demographics over others. To mitigate this, HR teams must regularly audit AI tools, use diverse datasets, and implement fairness-focused AI models to protect unbiased decision-making.

Data Privacy and Security Regulations

AI systems in HR process vast amounts of sensitive employee information, which makes data privacy a serious issue. Regulations like GDPR and CCPA require companies to handle personal employee data responsibly, to secure transparency in how AI processes and stores information.

To stay compliant, organizations must roll out strict data security measures. And employees should also be informed about how AI-driven HR systems use their data—and possibly, they should sign it off and agree to it.

How HR Teams Can Implement AI

The best way to use AI in HR is by relying on a pre-existing HR tool which has already incorporated AI. HR teams can start with nimble AI-driven solutions, such as solutions with automated resume screening, before expanding to more complex AI applications which require integrations.

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AI in HR Certifications and Training

As AI keeps expanding HR, professionals need to keep up by learning new skills through specialized training and certifications.

Best AI Certifications for HR Professionals

Several industry-recognized certifications can help HR professionals understand AI applications in HR analytics and workforce management. AIHR offers a People Analytics and Digital HR Certification, which covers AI-driven decision-making in HR. MIT Sloan’s AI for Business Strategy program discusses AI’s role in transforming business operations, including HR. The SHRM People Analytics Specialty Credential focuses on using AI-driven workforce analytics for better talent management. For those looking for a technical foundation, Google’s Machine Learning Crash Course provides a beginner-friendly introduction to AI concepts. But, it's more of a programmer's course than an HR course.

Resources to Upskill in AI-Driven HR

Online learning platforms like Coursera, Udacity, and edX offer courses on AI in HR, which cover areas like talent analytics and AI-driven recruitment. Plus, industry conferences, such as the HR Tech Conference, might feature speakers that address AI in HR. And blogs, like the one we run at TalentHR, are handy sources too for staying updated on AI-driven HR strategies.

Use AI in HR with Specialized HR Software

AI is taking over the recruitment process, employee engagement, compliance, and workforce planning because it makes it easier for HR reps. It automates time-consuming tasks, offers more data for decision-making, and even personalizes employee experiences.

But as with any technology, AI comes with its challenges. Ethical concerns, data privacy, and the risk of bias mean that HR teams need to be thoughtful about how they implement AI. The key is to use AI as a tool to support human decision-making, not replace it.

Looking ahead, AI’s role in HR will only continue to expand. And HR professionals who stay ahead of the curve because they're already tinkering with AI will be best positioned to shape the future of HR.

HR professionals can start using AI with TalentHR. TalentHR is an all-in-one HR software solution that adopts AI technology in many of its features like its ATS, its surveys tool, and file management tool.

You can register for free and start taking advantage of all the benefits AI brings to HR right away.