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Last Updated August 14, 2023

The Power of AI and how it is being used in HR.

Artificial Intelligence (AI) is transforming Small Businesses and Revolutionising Human Resources.

In today’s rapidly evolving digital landscape, small businesses constantly seek innovative ways to stay competitive and thrive. One technology that has emerged as a game-changer is Artificial Intelligence (AI). 

With its ability to analyse vast amounts of data, automate processes, and provide valuable insights, AI is revolutionising various industries, including human resources (HR). 

Would you be surprised to hear that 97% of businesses plan to implement the technology in two years, according to a new study conducted by Forrester Consulting on behalf of Grammarly Business in May 2023.¹

In this blog, we will explore how AI is transforming small businesses and discover how it can be harnessed to enhance HR tasks, ultimately empowering businesses to operate more efficiently and make smarter decisions.

Artificial Intelligence has become an increasingly popular buzzword in recent years, but what exactly is it? 

Simply put, AI refers to the development of intelligent machines that can perform tasks typically requiring human intelligence. From self-driving cars to voice assistants like Siri and Alexa, AI has woven its way into our everyday lives, often without us even realising it.

AI systems are designed to analyse and interpret vast amounts of data, recognize patterns, and make predictions or decisions based on that information. This ability allows AI to accomplish tasks more efficiently and accurately than humans in many cases. It’s like having a super-smart assistant who can quickly process information!

But don’t worry; Artificial Intelligence isn’t out to take over the world or replace human jobs (despite what some sci-fi movies may suggest). Instead, it aims to enhance human capabilities, making our lives easier and more convenient. Think of AI as a helpful sidekick that can assist us in various ways.

AI isn’t just for big corporations or tech giants. Small businesses can also benefit from this transformative technology. Its tools can help small businesses automate repetitive tasks, analyse customer data to personalise marketing efforts, and even optimize supply chain management.

Artificial Intelligence also has the potential to revolutionize customer service. Chatbots powered by AI can handle customer inquiries and provide instant support, ensuring round-the-clock availability. This means no more waiting on hold or delayed responses to emails and social media messaging. Plus, AI can learn from customer interactions, improving its responses over time.

Artificial Intelligence is a powerful tool that has the potential to transform various industries and improve our daily lives. It’s not something to be feared but embraced as a helpful ally. While there are ethical considerations and challenges to address, the potential benefits of AI are immense. 

AI is already impacting diverse fields, such as Allied Health and Finance, to name a few.

How to enhance HR tasks with AI

Here are some ways you can enhance HR tasks with AI:

1. Streamlining Recruitment and Talent Acquisition:

Recruiting and hiring the right talent can be a time-consuming and resource-intensive process. AI-powered tools can simplify this process by automating candidate screening, analyzing resumes, and identifying the most suitable candidates. These tools leverage machine learning algorithms to match job requirements with candidate profiles, significantly reducing the time and effort required to find the perfect fit for a role.

2. Improving Employee Onboarding:

Efficient onboarding sets the stage for employee success and engagement. AI can enhance this process by providing personalized training plans and resources, automating paperwork and administrative tasks, and offering interactive virtual assistants that guide new employees through their initial days. These AI-powered assistants can answer common questions, provide real-time support, and foster a positive onboarding experience.

3. Optimizing Employee Engagement:

Maintaining a motivated and engaged workforce is crucial for small businesses success. AI tools can help monitor employee sentiment and engagement levels by analyzing data from various sources, including employee surveys, performance evaluations, and social media. These insights enable HR teams to identify areas for improvement, implement targeted interventions, and foster a positive work culture.

4. Assisting in Performance Evaluation:

AI-powered systems can assist HR departments in evaluating employee performance more objectively and accurately. AI algorithms can generate comprehensive performance reports by analyzing relevant data such as productivity metrics, client feedback, and project outcomes. These reports help identify high-performing employees, pinpoint skill gaps, and provide valuable input for performance appraisals and career development.

5. Ensuring Fairness in HR Processes:

Unconscious biases can inadvertently influence HR decisions, leading to unfair outcomes. AI algorithms can help mitigate this issue by removing biases from the decision-making process. For example, during the initial screening phase, AI tools can anonymize candidate information, focusing solely on qualifications and skills. This approach helps promote fairness and equal opportunities in hiring and other HR processes.

HR professionals are discovering a newfound superpower with the help of AI technology

Your HR professional isn’t extinct just yet; instead, HR professionals are discovering a newfound superpower with the help of AI technology. By leveraging AI tools, HR professionals can streamline their tasks, make data-driven decisions, and focus more on strategic initiatives.

AI empowers HR professionals by automating time-consuming processes such as resume screening and candidate sourcing. Outsourcing these tasks allows HR teams to sift through a larger pool of candidates efficiently and identify the most qualified ones without getting lost in a sea of applications.

While AI takes care of repetitive tasks, HR professionals can focus on strategic initiatives like talent development, employee engagement, and shaping company culture. This shift allows them to bring their expertise and creativity to the forefront, driving meaningful changes within the organization.

In a nutshell, AI empowers HR professionals by automating processes, providing data-driven insights, and freeing up their time for more strategic endeavors. With AI as their sidekick, HR professionals are poised to play a pivotal role in shaping the future of work.

Contact Small Business Society to leverage your business and power up your Human Resources today with an HR strategy session.


  1. Commissioned study conducted by Forrester Consulting on behalf of Grammarly | Maximizing Business Potential With Generative AI: The Path to Transformation, July 2023.

The information provided in this document is for your guidance only and is general in nature. It does not constitute as legal advice. It is the responsibility of the individual to seek legal advice where required.


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About Kate Tongue

Kate Tongue is the founding Director of Small Business Society.

She is a qualified and experienced Human Resources professional with more than 10 years of experience across the private and public sectors.

Her particular interest and experience is in managing the employee life cycle, delivering process improvements, and Human Resource strategy.

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