Digital transformation reshapes how HR departments operate to keep pace with competitive and remote working environments. Companies using tools like AI-powered ATS platforms and employee chatbots are proving that smart digital strategies not only shorten hiring cycles but also boost employee engagement and retention.
See fifteen actionable HR digital transformation use cases reshaping workplaces, backed by real-world examples.
Use cases
1. Candidate search & identification
Searching for and identifying suitable candidates for a job position is a process that could be automated. The benefit is that the software will quickly scrape the data en masse. Then, based on predetermined rules, candidates who meet the criteria will automatically be emailed for further inquiries.
2. Recruitment automation: RPA & Applicant tracking systems (ATS)
Applicant tracking systems (ATS) are widely used to minimize the time spent on unqualified candidates. Software screens candidate resumes and eliminates unqualified candidates’ resumes from the list automatically by using keyword filtering. However, with machine learning and AI advancements, these systems can be trained based on accepted candidates’ success data. Along with resume screening, ATSs are capable of job posting, pre-interview testing, interview planning, and interview evaluation features.
For more information on applicant tracking systems, you can check out our comprehensive article.
3. AI-powered job post writers
We’ve talked about automated content generation before. HR professionals can use AI-powered job post writer tools to write better job postings. The image below illustrates how these tools improve job postings.
4. Onboarding software
From the moment the candidate signs an employment contract to the first day of the candidate, the HR professional deals with multiple manual tasks such as introduction to tools used, virtual office tours for orientation, and meeting the team. Onboarding tools can personalize new hires’ onboarding journeys while automating the manual tasks HR specialists are responsible for.
5. Recruiter chatbots
Recruiter chatbots are another AI-enabled HR trend that helps recruiters save recruiting time by screening and staging candidates throughout the hiring process. These bots engage with candidates and enhance the candidate experience.
For more information on how AI changes recruitment, we have an in-depth guide for you.
Real-life example: Unilever’s HireVue AI assessments
Unilever reduced hiring time by 75% using AI to analyze candidates’ language and facial cues, ensuring bias-free shortlisting. Chatbots engage applicants 24/7, answering FAQs and scheduling interviews, boosting candidate satisfaction by 40%. 1
6. HR Analytics
Analytics projects have been a great lever for organizations to improve their processes and services. Businesses can use workforce analytics to better assess workforce performance. Workforce analytics uses employee and enterprise data to gain insights about employee and HR performance by using metrics such as time to fill, cost per hire, competency analytics, retention rate, and replacement rate.
If you want to learn why your business needs HR analytics tools, here are 6 reasons to set up HR analytics.
7. HR chatbots
One of the tasks the HR team is responsible for is answering employee questions. Employees mostly encounter the same challenges and ask the same questions to HR professionals. Deploying a chatbot that answers the FAQs of employees can save recruiters time. For example, Leena AI is a chatbot that helps HR teams automate employee queries, enhance employee experience, and ensure employee engagement. It provides automatic replies for all employee queries that are documented in the enterprise knowledge base.
Real-life example: IBM’s HR chatbots saving 500+ hours monthly
Repetitive tasks like payroll queries or policy updates drain HR teams. IBM’s chatbot “HR Helper” cut administrative workload by 30%, freeing teams to focus on strategic initiatives like upskilling. 2
Case Study: PepsiCo’s “TalentGen” Chatbot
Technology Used: Google’s PaLM 2 LLM with sentiment analysis.
Use Case: PepsiCo’s chatbot conducts first-round interviews for campus hires, scoring candidates on problem-solving and alignment with company values. The system reduced hiring cycle time by 50% while improving candidate satisfaction by 65%. 3
8. Performance management
After a successful hire, HR teams focus on the new employee’s orientation. Similarly, after an executive leaves the company, the promoted employee must be trained on the new responsibilities. A talent management system is integrated software that contains performance management, learning and development, compensation management, and succession planning components.
Anyone with some corporate experience has been in performance review meetings with unclear feedback or next steps. Many companies struggle to align compensation with performance beyond executive or sales roles.
Performance management tools aim to assist HR teams in collecting feedback and building performance management systems that reward results.
9. Learning management
Continuous growth is the most necessary ingredient to success; however, even large companies manage their learning via hard-to-manage spreadsheets. Learning management software helps companies keep track of candidate development, identify employees’ skills, and experiment with new learning approaches.
10. Compensation management
Effective compensation management is crucial to employee happiness. For example, seeing that your bonus is incorrectly calculated in the HR systems would be demotivating. Compensation management systems facilitate this important process by keeping track of all aspects of compensation, including stock options.
Real-life example: Adobe’s Workday-driven continuous feedback
Adobe replaced annual reviews with real-time feedback, increasing retention by 10%. AI-driven platforms like recommend courses based on skill gaps, ensuring employees stay ahead of industry shifts. 4
11. Attrition prediction
Employees do similar things before they leave a company. They improve their LinkedIn profile, make connections to colleagues, and connect with interviewers. It is valuable to know that employees intend to leave before they do so; companies can plan their replacement and handover. There are cultural approaches to this problem, such as mindful transition, which advocates ending 15 days’ notice and encouraging employees to be open about their future career plans without the risk of retaliation from the employer.
Another approach is to use machine learning to predict which employees will soon leave. As usual, when humans fail, machines fill the gaps. HiQ Labs, a company that provides such technology, got embroiled in a long legal fight with LinkedIn over the right to use publicly available LinkedIn data as an input to their model.
Real-life example: Delta Air Lines’ machine learning reducing turnover
Delta slashed attrition by 20% using predictive models to identify at-risk employees and deploy targeted retention strategies, such as mentorship or role adjustments. 5
12. Strategic workforce planning with AI
Traditional workforce planning relies on historical data and manual forecasts, often leading to mismatches between talent supply and business needs. AI supercharges this process by analyzing real-time data, predicting future skill gaps, and recommending actionable strategies.
Real-life example: Siemens’ AI mapping future skill needs
Siemens uses AI to align workforce planning with long-term business goals, identifying reskilling opportunities for 20,000+ employees to transition into AI and IoT roles by 2026. 6
Case Study: IBM’s “Talent Insights” Suite
Technology Used: IBM Watsonx with GenAI simulation tools.
Use Case: IBM used GenAI to model the impact of AI adoption on its workforce. The system identified 12,000 roles needing reskilling and generated personalized transition roadmaps, reducing redeployment costs by $120M annually. 7
13. GenAI for diversity & inclusion
GenAI identifies systemic biases in HR processes, from performance reviews to promotions. For example, LLMs analyze feedback patterns to flag biased language and recommend corrective actions.
Case Study: PwC’s “InclusionIQ” Tool
Technology Used: OpenAI’s GPT-4 and DEI datasets.
Use Case: PwC’s tool audits performance reviews for biased language, reducing gendered feedback by 45%. Managers receive real-time prompts to reframe subjective critiques (e.g., changing “quiet leader” to “strategic listener”). 8
14. Large Language Models (LLMs) for personalized learning & development
LLMs curate hyper-personalized training content by analyzing employee skill gaps, career goals, and learning styles. For instance, GenAI generates microlearning modules, interactive simulations, or even role-playing scenarios tailored to individual needs.
Case Study: Accenture’s “LearnAI” Platform
Technology Used: ChatGPT-4 API and custom GenAI models.
Use Case: Accenture’s AI platform creates bite-sized training videos for employees transitioning to AI roles. The LLM dynamically adjusts content based on quiz performance, reducing time-to-competency by 35%. 9
Decision making: Generative AI and LLMs are revolutionizing HR by automating complex tasks, personalizing employee experiences, and enabling data-driven decision-making. These tools go beyond traditional automation, offering creative solutions for talent acquisition, onboarding, learning, and strategic planning. Below are key applications and real-world implementations.
Case Study: Hilton’s Bias-Free Job Ads
Technology Used: GPT-4-based custom LLM integrated with Textio.
Use Case: Hilton reduced gendered language in job postings by 60% using GenAI. The tool flagged phrases like “aggressive negotiator” (masculine-coded) and suggested alternatives like “collaborative communicator,” increasing female applicants by 22%. 10
15. Large Language Models (LLMs) for automated onboarding assistants
LLMs create personalized onboarding journeys by synthesizing data from HR systems, team feedback, and employee preferences. New hires interact with AI avatars for role-specific training or policy walkthroughs.
Case Study: Deloitte’s “OnboardAI”
Technology Used: Microsoft Azure, OpenAI, and virtual avatars.
Use Case: Deloitte’s AI assistant guides new hires through compliance training, schedules mentor meetings, and answers role-specific questions (e.g., “How do I access client X’s project files?”). This cut onboarding time by 40% and improved retention of early-stage hires by 18%. 11
Other
This is not a complete list. HR teams developing leading-edge solutions may want to work with custom AI model development companies to build machine learning models to address their specific challenges.
You can also read our article on HR technology trends.
What is digital transformation in HR?
In short, digital transformation involves implementing digital technologies into business functions to improve organizations’ productivity while enhancing customer experience. It is also changing the way HR offices work, from how they hire and develop talent to the productivity improvements that come with automation.
Why is it important?
According to PwC’s Human Resources Technology Survey, the top concerns of HR teams are
- Attracting top talent and keeping them due to increasing competition
- Developing everyone to reach their potential
- Improving employee experience, primarily by automating tasks
Digital HR addresses these concerns partially with digital HR solutions. However, these tools need to be complemented with the right processes and initiatives by the HR team. Though we are excited about technology, it is only one of the ingredients of a company’s culture.
After the COVID-19 pandemic, digital transformation became even more crucial for the HR office. The pandemic caused businesses to shift toward remote working practices, and HR’s role was to build a collaborative remote working environment.
What should HR do to support the company’s digital transformation?
We have talked so far about digital transformation in the HR department. However, HR professionals are also an important enabler of organizational digital transformation. An innovative culture is essential for any digital transformation framework, and its absence may cause digital transformation failures. Roles for HR in digital transformation are:
- Hiring digital talent that has digital capabilities such as design thinking, agility, and a data-oriented mindset
- Creating an innovative and agile culture is essential for pursuing opportunities that arise due to technological changes.
- Digital transformation is a long-term, strategic project requiring collaboration. HR must support it with the right communication initiatives and ensure organizational alignment.
- Working closely with business analysts to adopt a digital transformation enabler technology, such as process mining.
Further Reading
For more on digital transformation:
If you need guidance in your digital transformation journey, check our data-driven, sortable/filterable list of digital transformation consultant companies. If you still have questions about digital transformation in HR, we would like to help:
External Links
- 1. The Practical Application of AI: Unilever Reduced Recruitment Time by 75%. Pumpedu
- 2. https://www.ibm.com/ai-agents?utm_content=SRCWW&p1=Search&p4=43700081706192105&p5=p&p9=58700008869913756&gad_source=1&gclid=CjwKCAjwktO_BhBrEiwAV70jXn3f4nW-soccbsB8iNigCfBqW5Fp_aIBY2sUSvHPydBS6ahFn3tgOhoC8aAQAvD_BwE&gclsrc=aw.ds
- 3. https://www.pepsico.com/news/press-release/pepsico-ai-driven-hiring-04052024
- 4. Adobe's Performance Review: The Check-In System’s Success. Amazing Workplaces
- 5. The Role of Predictive Analytics in Employee Retention Strategies .
- 6. Siemens accelerates path toward AI-driven industries through innovation and partnerships | Press | Company | Siemens.
- 7. https://www.ibm.com/watsonx
- 8. https://www.pwc.com/gx/en/issues/data-and-analytics/ai/ai-in-diversity.html
- 9. https://www.accenture.com/us-en/insights/technology/generative-ai-learning
- 10. https://www.hilton.com/en/corporate/newsroom/2024/04/hilton-ai-job-descriptions/
- 11. https://www2.deloitte.com/us/en/pages/technology/articles/generative-ai-hr-onboarding.html
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