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The Impact and Importance of Conversational AI in HR Operations

Conversational artificial intelligence can become a strategic strong point for companies. A well-oiled conversational AI system can help streamline HR processes and enhance employee engagement while creating room for automation and breed operational excellence. 

Careful utilization of conversational AI can reshape human capital management fostering an employee-centric culture boasting higher productivity and retention. As HR teams and leaders face complex and dynamic challenges, AI in HR operations is helping them manage their tasks with higher efficiency and fostering a positive organizational culture. 

How Conversational AI Works Together with Human Resources?

The impact of conversational AI on human resource management is accelerated with its in-built technologies and techniques. Here are a few notable technologies worthy of consideration;

  • Natural Language Processing (NLP)

Conversational AI systems leverage NLP to understand and interpret human language facilitating the integration of chatbots for communication. With employees gaining quick access to the required information, chatbots can function as a 24/7. 

The NLP algorithms analyze text inputs, extract meaning, and generate appropriate responses to further engage employees effectively. 

  • Automation

Conversational AI systems help build an automation-oriented HR management system. Automation in HR helps complete tasks like answering employee queries, induction, onboarding, interview scheduling, and training. 

Automating these tasks can streamline HR operations and create room for higher efficiency and productivity. 

  • Backend Integration

Conversational AI systems integrate with the backend systems to access employee profiles, company information, policies, and procedures to gain real-time access for accurate data processing. Hence, conversational AI systems can provide up-to-date information and responses.

In addition to these three technologies, conversational AI also combines personalization techniques and data analysis to deliver overhaul HR processes, improve employee engagement, optimize operations. 

4 Ways Conversational AI CanImpact HR

Conversational AI and Generative AI augment HR functionality. Where it can automate HR processes, it can also improve employee experience, increase efficiency, and make way for better scalability. 

  • Recruitment and Onboarding

Benefits Challenges
Saves time and effort Data privacy concerns
Saves Costs Complexity in the integration of AI services in HR
Improved Candidate and Employee Experience


Employee recruitment and onboarding should be a seamless and efficient experience for everyone. AI-powered chatbots can work as virtual assistants, adding interactivity to the recruitment process. 

Efficient handling of the recruitment process means zero delay in handling candidate queries, automated interview scheduling, and preliminary screenings to quickly assess the candidates. This may be the reason why around 25% of organizations are utilizing automation and AI to augment HR-related tasks, and we can expect this number to increase in the future. 

Moving to the onboarding process, conversational AI can be instrumental in employee training induction and taking them through the company processes, policies and sharing necessary updates. 

  • Employee Support and Assistance

Benefits Challenges
Improved employee experience Confidentiality and information sharing
Cost savings User (employee) adoption
Better scope for scalability Integration with existing systems


Conversational AI provides real-time assistance to employees and answers their queries. The answering capabilities of the AI model depend on the data submitted during the development and integration stage. 

Once deployed, the program can provide 24/7 assistance, in return, freeing up HR resources to be allocated in other important activities. Moreover, using conversational artificial intelligence programs, companies can set up employee wellness, training, and support programs. 

These programs are aimed at improving employee and worker experience. Moreover, better employee engagement leads to improved customer experience. Employees having good work experience are 300% more positive in saying that their company is customer-focused. 

  • Automation and AI in HR

Benefits Challenges
Improved work efficiency Scope of bias and discrimination
Better work accuracy Lack of transparency behind AI automation algorithms
Access to data and insights Job loss and employee displacement


Automating routine tasks is the beginning of how automation can benefit the HR department. AI-powered chatbots working on training data can effectively take control of repetitive tasks, reducing the burden on the HR team. 

It can proactively analyze the HR department activities to suggest changes in the tasks and processes, prioritizing them according to their impact on the department workings. With the after-hours support structure sorted, companies can save money and improve the employee experience. 

Most of all, AI and automation help facilitate personalization and ensure employees receive tailored care, enabling them to focus on their work.

  • AI for Training and Development

Benefits Challenges
Build personalized learning experiences.  Encouraging employees to adopt AI-based training.
Learn at your pace Continuous updates of training material. 
Effective tracking and feedback Integration of training resources with existing systems. 


Training and continuous development is a big part of every employee’s career chart. Companies are expected to provide their employees with the right training environment and resources.

Conversational AI driven chatbots are programmed with predefined rules, training data, and resources for employee development. Conversational and generative AI using natural language processing (NLP) capabilities facilitate dynamic interactions. 

For technical training, companies can bring in virtual and augmented reality simulations. Medical training, technician training, aviation training, etc., can be easily implemented without spending too much time, resources, and manpower. 

To Sum It Up

The future of human capital management is bright and exciting. With companies investing heavily in improving their HR departments, the integration of AI in all its forms is almost necessary. 

As AI takes care of the multiple HR functions bringing in automation, it will support and augment decision making. The more AI-based functions you can bring into your organizational culture, the better. 

Shaip represents a talented team of specialists with extensive knowledge on how AI and its applications can transform your organization. Leverage our understanding of AI, specifically text to speech capabilities, for building AI programs based on accurate and extensive data, allowing you to personalize the utilization of AI and achieve the best possible results. 

Author Profile: Hardik Parikh

Hardik ParikhWith more than 15 years of experience creating and selling innovative tech products, Hardik is an accomplished expert in the field. His current focus is building and scaling Shaip’s AI data platform, which leverages human-in-the-loop solutions to provide top-quality training datasets for AI models.


IEMLabs is an ISO 27001:2013 and ISO 9001:2015 certified company, we are also a proud member of EC Council, NASSCOM, Data Security Council of India (DSCI), Indian Chamber of Commerce (ICC), U.S. Chamber of Commerce, and Confederation of Indian Industry (CII). The company was established in 2016 with a vision in mind to provide Cyber Security to the digital world and make them Hack Proof. The question is why are we suddenly talking about Cyber Security and all this stuff? With the development of technology, more and more companies are shifting their business to Digital World which is resulting in the increase in Cyber Crimes.


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