The usage of AI in hiring and human resources presents significant opportunities for modern companies to automate mundane and repetitive tasks, thereby supporting their operations. Additionally, it is an effective way to save resources and enhance profitability. This text provides a detailed guide on the implementation of artificial intelligence in HR.
In this article, you will learn how generative AI is transforming HR and what it means for modern HR teams. You will discover real use cases of AI in recruitment, workforce management, and employee experience. You will also find out how to use generative AI responsibly and strategically in your HR organization.
According to Reuters data, ChatGPT is a phenomenon in recent tech history. The tool reached a 100 million users threshold in February, just two months after its launch. Just to put this into perspective – the most popular social network in the world – Facebook – needed 4.5 years to reach this level. For Instagram, it was 2 years, and for TikTok, nine months.
The release of this tool marks a clear indication of entering a new era—the era of applied AI in every aspect of life, ranging from personal operations and productivity to business and society as a whole.
However, ChatGPT is not only an impressive example but also part of a larger trend of building solutions based on Generative Artificial Intelligence (AI).
What is generative artificial intelligence (AI)?
Generative AI refers to a type of artificial intelligence that is specifically designed and developed to create content, including texts, images, movies, and data. The content is generated based on the user's input, or “prompt.” Users can request various types of content, as long as it adheres to the tool's policies.
For instance, users can ask the generative AI system to write an email or a social media post based on a one-sentence draft provided by the user. It can also review and rephrase content according to the user's desired style. In the case of image generators, they can create new visuals based on a text prompt or manipulate existing images. For example, a user could take an existing image (such as the Pope) and place it in a new context (such as wearing a puffer jacket instead of a robe).
AI has entered the market at an intriguing moment, particularly within the challenging environment of modern human resources.
7 Challenges HR will face in the near future (and how to tackle them with Generative AI)
Modern human resources departments need to combine multiple qualities that weren’t considered required a decade ago. Apart from recruiting and sourcing, there is a good deal of hard HR work to do and a plethora of new responsibilities. These include remote job coordination, well-being monitoring, and work-life balance management.
And these are only the tip of the iceberg.
The war for talents
On the flip side, the scarcity of available workers also translates to a limited pool of talent for companies. Moreover, the advancing sophistication of modern technology raises the bar in terms of required skill sets and abilities for talented individuals. Changes in tech stacks, demand for soft skills, and ultimately, a few well-educated individuals who meet the highest requirements become the norm. As companies fiercely compete for these exceptional talents, it places significant pressure on HR teams to attract and retain them.
How GenAI can help
Generative AI tools are highly effective in processing vast amounts of data. According to studies, generative AI significantly enhances operational efficiency for HR, decreasing time-to-hire and improving candidate-job matching while enabling more precise decision-making processes in talent acquisition and performance management [Source: researchgate.net, Nov 2024, The Role Generative AI in Human Resource Management: Enhancing Operational Efficiency, Decision-Making, and Addressing Ethical Challenges].
When equipped with web-browsing capabilities, these tools offer a valuable opportunity to alleviate the tedious and meticulous work of sourcers and spotters. Additionally, GenAI tools like ChatGPT can automate the initial stages of communication. For instance, if repetitive messages need to be sent to potential hires, certain parts of those messages can be composed by GPT-powered assistants, enabling personalized recruiting with the power of AI. In this model, HR teams can focus on delivering top-quality work, freeing up their time and creative abilities to impress potential hires with a personalized touch.
Globalization and work organization
The pandemic has made remote work the new norm. Despite the initial disruption, this shift has provided companies, particularly in creative and tech fields, with access to a global workforce. Furthermore, this trend has encouraged companies to outsource and offshore various aspects of their business operations.
How GenAI can help
Effective communication is crucial in all forms of outsourcing, and the challenges tend to increase with greater distances involved. For instance, if a company is outsourcing services to another city within the same state or even to a neighboring state, the communication may not pose significant challenges. However, when outsourcing processes to regions such as Asia or Eastern Europe, intercultural communication challenges arise. Language and cultural barriers can be difficult to overcome. Yet, by employing generative AI tools to facilitate communication between both parties, the process becomes much smoother. Once again, artificial intelligence in HR aims to simplify and streamline operations.
Training and skill-building
As mentioned earlier, talent acquisition will become increasingly challenging in the near future, even more so than it is today. When it becomes nearly impossible to hire talented and skilled individuals externally, organizations can turn to nurturing and developing talent in-house.
How GenAI can help
Generative AI, particularly ChatGPT, has demonstrated its effectiveness as a tutor and support system for acquiring new skills and forming new habits. With a healthy dose of skepticism, the advice provided by a robotic coach can yield remarkable results. The story of Greg Mushen, who got addicted to running by following the guidance of ChatGPT, lost 26 pounds and actually built a habit of regular running, is only one of the multiple examples. AI recruiting platform can be supported with an AI-powered training platform as well.
Workforce engagement
Another challenge is about keeping the employees engaged in their work. According to the data gathered by Wellable, up to 85% of employees are disengaged in their work. This makes only 15% of the workforce actually engaged in their duties.
How GenAI can help
Tools like ChatGPT can be utilized to enhance employee screening and mood assessment. Through smooth and natural conversations, the chat tool can ask questions and gather information about an employee's mood and overall well-being.
Employee health and wellbeing
The pandemic has highlighted the importance of addressing burnout and mental health in the workplace. This has made the role of HR departments even more challenging, as they now need to focus not only on traditional engagement strategies but also consider the modern context of employee well-being. According to Forbes Health, up to 21% of the whole US population has experienced a mental health condition. Statistically, it makes one in five employees in a typical US company suffer from a mental condition of some sort.
How GenAI can help
One advantage of using AI in human resources is that machines are fair and non-judgmental. They lack biases and opinions, as they are incapable of forming them. When properly used and communicated, this provides an opportunity for employees to share more details and information. It may be easier to do so with non-human entities rather than with real individuals who may carry biases or lack complete independence in their thoughts. This ironic aspect of using artificial intelligence in human resources highlights the need for efficiency that comes from not being human. ChatGPT-like tools can also serve as personalized coaches or consultants, providing a first line of screening or diagnosis when dealing with employee mental health issues.
Retaining the workforce
Retaining employees in a highly volatile job market, where multiple offers come from all around the world, can be extremely challenging for HR departments. However, generative AI can assist in building a comfortable working environment for employees. According to scientific research, AI can reduce HR operational expenses by up to 30% through automation of high-volume administrative tasks and smarter workforce planning that balances workloads and minimizes overtime costs [Source: managementpapers.polsl.pl, 2025, Artificial intelligence in human resource management]. With support from the IT department, tailored solutions can be created to support the workforce in their everyday duties.
How GenAI can help
By relieving employees of mundane and draining tasks and allowing them to focus on the most inspiring and empowering aspects of their work, they become less likely to seek job changes.
Lack of workforce
First and foremost, the challenge is the shrinking population. The fears of overpopulation are seen in classic sci-fi works (with an iconic “Make Room! Make Room” opening the list), yet the doom is probably never to come. According to the UN data, in 2021 up to 60% of the global population was living in countries with birth rates below 2.1 per woman. This makes these countries’ populations effectively shrinking. According to Statista data, Gen Z, people born between 1997 and 2012, currently count 69.58 million people in the US. Yet the previous generation of Millennials counts 72.24 million people. This makes the pool of available talents in the population smaller by nearly 3 million – roughly a whole state of Kansas less! This brings a massive concern for the HR depts – it will be difficult to find the employee because there may not be PEOPLE to work!
How GenAI can help and how HR can use AI
The shortage of available workforce can be addressed by shifting certain tasks to robots. Generative AI models like ChatGPT have demonstrated their effectiveness in supporting the workforce across various tasks, including analytics, writing, and conceptual support. By incorporating ChatGPT plugins into external applications and within ChatGPT itself, the role of hyper-automation will become increasingly prominent. This emphasizes the importance of automating tasks whenever possible to counteract the scarcity of available workers. A prime example is the use of AI in recruiting software, where machines handle the tedious and repetitive tasks of sorting and scoring candidates.
Summary – AI for HR management
Like any new technology, ChatGPT and generative AI can be leveraged for companies. Given the capabilities of large language models, HR departments can potentially derive significant advantages from incorporating these tools into their operations. If you would like to further explore the implementation of AI in human resources, including the use of GenAI-based systems, please feel free to contact us now, and don't forget to join our HR Newsletter! Or start testing how modern HR tools can simplify your daily work with Calamari.
FAQ: Generative AI in HR: The complete guide
How does generative AI in HR transform the HR function across human resources?
Generative AI in HR and AI in human resources transform HR processes by automating tasks and improving employee experience, and Calamari supports this by organizing HR operations in one system. With Calamari, HR teams can focus on strategic work while AI tools and generative AI tools support daily management.
What are the most important HR use cases for generative AI tools?
HR use cases include AI in recruitment and hiring, job description creation, training materials, and performance review summaries, while Calamari manages time, attendance, and HR operations in one place. Together, generative AI tools and Calamari help HR professionals reduce admin work and focus on people.
How can HR teams use generative AI to transform operations?
HR teams can use generative AI for content creation, workforce planning, and performance management and use Calamari to execute these plans in daily operations. This combination helps HR teams work faster while keeping all processes organized in one system.
How does AI in recruitment and hiring change talent management and HR practices?
AI in recruitment and hiring uses artificial intelligence to screen candidates and prepare content, while Calamari supports onboarding and workforce management after hiring. This shows how AI and Calamari together transform HR practices from hiring to everyday work.
What is the role of generative AI in HR operations and HR teams today?
The role of generative AI is to support HR teams with analysis, content, and automation, while Calamari handles approvals, time tracking, and absence management. Together they form a practical technology stack for modern HR departments.
How does generative AI in human resources impact employee experience and HR processes?
Generative AI in human resources helps personalize communication and support employees, while Calamari gives them easy access to requests, approvals, and HR self-service. This improves employee experience and keeps HR processes simple and transparent.
What are the ethical AI challenges in HR?
Ethical AI is critical when used for decisions, and Calamari helps by keeping HR data structured, auditable, and controlled. This allows HR leaders to combine automation with clear rules and human oversight.
How does the power of generative AI support HR professionals and their teams?
The power of generative AI saves HR professionals time on writing, analysis, and summaries, while Calamari saves time on approvals, scheduling, and reporting. Together they allow HR teams to focus more on people and less on administration.
How does generative AI adoption affect the future of HR?
Generative AI adoption is shaping the future of HR toward more automation and self-service, and Calamari already supports this model with digital workflows. This is how new HR becomes faster, more transparent, and easier to scale.
How can HR organizations build a generative AI strategy and implement AI across HR?
A generative AI strategy defines how it will support HR decisions, while Calamari becomes the operational system that executes these processes in daily work. This way, HR teams combine smart automation with reliable HR operations in one place.
