AI chatbots: The new disruption in the Indian HRTech industry

AI not only enables businesses to assess and improve how their employees feel about their work lives, but it also paves the way for increased productivity and, by extension, revenue.

AI chatbots: The new disruption in the Indian HRTech industry

Sunday January 08, 2023,

4 min Read

As the world becomes digitally driven, Artificial Intelligence (AI) is creating dynamic changes in business organisations across every sector. Similarly, even the HR industry is not immune to the efficiencies that AI integration generates. 

To match the pace of human intelligence, a deep connection is being made between machines and humans that further disrupts the human enterprise experience. 

In the current work environment, forward-moving business organisations are increasingly focussing on leveraging the power of AI to help talent teams with greater efficiencies. As digitalisation in India is continuing to deepen, around 57% of IT professionals report their organisations have actively deployed AI technology while over 27% of them indicate their organisation is exploring the use cases of AI, as per IBM’s Global AI Adoption Index 2022. 

This makes Indian HR teams lead the AI revolution by acknowledging its significant use cases–interact, converse and automate human processes.  

Though AI-enabled systems perform a range of routine business practices much more efficiently than humans, AI chatbots are dominating conversations across the entire talent management system, employee engagement and retention. The HR fraternity is applauding the automation of employer-employee communication.  

Redefining user experience

After the pandemic, organisations are dealing with a distributed workforce, adoption of mobile technologies, and seeing a change in employee demographics. 

With AI-driven technologies, organisations are able to become more data-oriented to respond to the dynamic needs of their employees. 

This HRtech startup helps managers prioritise milestones and step up as leaders

Employers can continuously listen to their employees at critical touchpoints in their employee lifecycle while they are working remotely or in a hybrid environment using intelligent engagement bots. These chatbots help businesses master continuous listening and identify employees who are unhappy and in need of immediate assistance, thereby reducing employee turnover and enhancing employee retention.

The fact that dissatisfied employees express their grievances to chatbot makes them an invaluable asset for a company. The advanced software can pinpoint employees that have a likelihood of leaving their jobs. 

This allows companies to take pre-emptive action to lower their attrition rate, a boon that undoubtedly provides an edge over competitors. 

Automating routine HR practices

Based on predictive algorithms, AI chatbots provide recruiters with the opportunity to automate their routine processes–CV screening, interview scheduling and processing bulk hiring. 

Recruiters no longer have to spend hours in front of their screens or calls to screen candidates, shortlist and schedule interviews. As a result, the recruiters' administrative tasks are reduced and they are freed to focus on other productive tasks, playing a talent advisory role. 

In addition, AI chatbots integrated into talent management will replace most elementary jobs in the future, allowing easy communication between employers and employees.     

Analysing relevant insights

Chatbots provide employees access to information about their employer organisation. According to an international report, around 64% of employees trust an AI chatbot more than their manager and most of them reach out to an AI chatbot instead of going to the manager for resolution of an issue. 

As part of human resources, AI chatbots are being used to decode complex processes, policies and frameworks. 

For employees, AI chatbots are available 24 hours a day and HRs can use chatbots to respond to employees while gathering relevant insights. 

Integrated with advanced analytics, AI chatbots help HR Business partners know how their employees are feeling that in turn helps them implement data-backed policies. As a result, HRBPs can solve issues that require immediate action through relevant insights and improve employee engagement. 

Final thoughts

AI not only enables businesses to assess and improve how their employees feel about their work lives, but it also paves the way for increased productivity and, by extension, revenue. It gives HR leaders the time and information they need to boost retention, recruitment, and employee engagement by providing an accurate assessment of employee engagement and hiring faster than any conventional method.

Edited by Affirunisa Kankudti

(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)