AI in HR: How Employers Can Close the Readiness Gap

AI is rapidly changing the HR landscape, becoming a top priority for businesses of all sizes. Instead of replacing HR professionals, AI helps them handle manual and repetitive tasks more efficiently. In an industry where human connection is crucial, AI is a valuable ally.

Historically, larger companies have had advantages due to their resources and established reputations. However, AI is leveling the playing field for smaller businesses by making information and automation more accessible. Smaller companies can now implement advanced talent acquisition strategies once reserved for larger organizations.

Organizations of all sizes can now use AI to screen resumes efficiently, conduct initial interviews, and analyze candidate data. By automating these processes, HR teams can focus on building relationships with candidates, speeding up the hiring timeline, and gaining a competitive edge in the global talent market.

See also: How AI in HR Boosts People Operations & Streamlines HR Processes

AI skills readiness

AI adoption in human resources is gaining momentum worldwide. Deel’s recent APAC’s Business Leader Pulse Check: Workforce and Hiring Report reveals that 54% of enterprises in Singapore have already embraced AI in their HR practices. Meanwhile, AI is revolutionizing hiring processes and workforce development strategies in the United States.

At our recent Future of Work Summit, Chike Aguh, the former Chief Innovation Officer at the US Department of Labor, highlighted how AI-powered chatbots in New Jersey facilitate job seekers’ access to employment opportunities and training resources.

Additionally, former US Secretary of Labor Seth Harris pointed out that AI’s capacity to analyze vast amounts of data and synthesize diverse information significantly enhances job-matching capabilities.

However, not all countries are sufficiently prepared for AI adoption, with Vietnam as a notable example. According to market research firm IMARC Group, Vietnam’s AI market is projected to grow nearly 16% annually, expanding from $547 million (or 13.8 trillion VND) in 2023 to over $2 billion (or 50.8 trillion VND) by 2032, fueled by increasing digitalization and supportive government initiatives.

Despite this promising growth trajectory, the percentage of Vietnamese businesses fully equipped to adopt AI solutions declined from 27% in 2023 to 22% in 2024.

A significant challenge for Vietnam is the shortage of a skilled workforce adept in AI development and processes. This shortage is not just in Vietnam. 70% of companies in the Asia Pacific are having trouble finding qualified AI professionals.

As AI becomes more embedded in organization operations, the demand for specialists in this field continues to rise. Organizations should prioritize investing in upskilling and reskilling their employees while exploring global talent pools to access specialized skills and broaden their candidate search.

Other critical factors influencing AI readiness include:

• Insufficient IT infrastructure designed for scalability and flexibility
• Decentralized and inaccessible data systems
• Rapidly changing regulatory environments

Addressing the AI readiness gap requires concerted efforts to educate industries on effectively integrating AI, particularly within the HR sector.

See also: AI and Upskilling Insights from the Policy Summit: Preparing the Workforce for Tomorrow

Responsible AI adoption

While AI improves hiring efficiency, it has potential limitations. It may not fully grasp human qualities such as creativity and emotional intelligence or accurately assess cultural fit. Therefore, human judgment is vital in final hiring decisions to ensure a fair and equitable process.

Responsible AI adoption is essential. Companies should use AI to support — not replace — human decision-making in HR processes.

To unlock AI’s potential ethically, businesses must adhere to key principles:

• Data security and privacy: Organizations must protect sensitive employee information by implementing strict security measures, ensuring data is used only for its intended purposes. This fosters trust and compliance
• Human oversight: AI streamlines processes, but human involvement is necessary to ensure fairness, compliance, and accuracy. HR AI should incorporate human feedback and expertise in its development and maintenance
• Augmentation over replacement: AI should serve as a smart assistant, automating repetitive tasks and allowing HR professionals to focus on strategic activities that drive talent development and organizational growth
• Accountability: AI can provide insights, but the ultimate decision-making responsibility lies with humans. Sole reliance on AI for critical decisions can lead to unintended consequences. By adopting AI responsibly, organizations can create a workplace culture that balances innovation with ethical standards

See also: How to Implement AI in HR: An Actionable Guide for HR Managers

Selecting the right AI tech

Deel is the single solution for hiring, managing, paying, and supporting a distributed workforce. Leveraging AI, the platform streamlines HR and compliance processes, enhancing the talent acquisition journey and providing a personalized candidate experience. Here’s how we use AI in our acquisition process:

Screening and shortlisting

With over 120,000 applications each month, we employ AI for initial CV screening, reducing the need for human reviews by 94%. AI generates an initial shortlist based on criteria set by the hiring manager, which recruiters then assess to select candidates for interviews.

Interviewing

As the largest fully remote organization globally, we conduct all interviews via video. We use MetaView to record interviews, take notes, and summarize key points. This AI tool evaluates candidates based on hiring criteria and situational questions, allowing recruiters to focus on building meaningful connections with top talent. Using AI in these initial stages can save up to 55 hours in CV screenings and 25 hours in interviews and reporting per role.

Compliant hiring

Deel AI is one of the pioneering tools for global compliance data. It monitors government websites for regulatory changes and provides real-time insights on regulations, benefits, and compensation across different countries. This empowers us and our customers to make informed hiring decisions based on quality, cost, and talent pool accessibility.

Additionally, Deel AI enables quick responses to global employment queries, helping companies like Outfittery, a leading online personal shopping service in Germany, reduce reliance on customer support and expedite query resolutions. Learn more here.

See also: Get Global HR Compliance Consulting with the AI Assistant

Get AI ready with Deel

Deel is the single solution for hiring, managing, paying, and supporting a global, distributed workforce. With the powerful AI-powered platform, you can:

• Consolidate and automate your HR operations
• Expand your team and hire globally
• Pay anyone, anywhere, in minutes
• Simplify, speed up, and scale global IT operations
• Set your team up for success with performance tools
• Attract and retain talent with immigration support

Sound like the ideal solution? Book 30 minutes with a product expert to get your questions answered