The Transformative Power of Generative AI in HR
Artificial intelligence (AI) and automation have already made a significant impact on how organizations hire, develop, and retain their people. Now, Generative AI (GenAI) has taken the world by storm, quickly becoming one of the most transformative and disruptive forces in reimagining creativity, efficiency, and workforce planning. GenAI is ushering in a new era of personalized experiences throughout the entire talent lifecycle, from recruitment to retirement.
The potential of GenAI for HR is significant and seemingly limitless. According to Gartner, GenAI will provide up to 30% productivity gains by allowing HR professionals to offload repetitive day-to-day tasks. Additionally, 76% of HR leaders believe that if they begin to adopt AI, they will maintain a competitive advantage when searching for and developing top talent. As GenAI continues to evolve, its impact will expand beyond content creation and productivity gains, fundamentally changing how HR professionals attract, engage, and nurture talent throughout their entire journey.
Transforming Talent Acquisition with Generative AI
It’s clear GenAI is transforming how organizations approach the recruitment process. As talent acquisition practitioners continue to infuse GenAI’s capabilities to reshape and redefine productivity, tools like Phenom X+ stand out at the forefront of this revolution, addressing critical pain points and delivering unparalleled benefits across the entire talent acquisition spectrum.
By harnessing the power of conversational AI and natural language processing, X+ streamlines tasks such as job description creation, resume parsing, and candidate engagement, empowering recruiters and hiring managers to make data-driven hiring decisions and connect with top talent in personal, meaningful, and authentic ways.
GenAI’s ability to rapidly analyze large candidate pools and create content that engages talent is accelerating the hiring process, removing friction from the hiring process, reducing time-to-hire, and saving money on recruiting efforts. With GenAI available throughout the entire platform, X+ enhances talent acquisition team productivity by completing tasks such as:
- Generating contextually relevant job descriptions based on role requirements, past ideal candidates, and current high-performing employees
- Creating on-brand content and optimizing discoverability via search (SEO)
- Offering a natural language search experience for candidates
- Highlighting best-fit external and internal candidates for any open role
- Writing and personalizing emails, SMS, WhatsApp messages, and campaigns for candidates
- Scheduling, rescheduling, and canceling interviews using natural language
- Developing individualized interview questions and guides
- Publishing comprehensive interview feedback in real-time for decision-makers
- Providing hiring teams with interview transcripts, candidate responses, summaries, and actionable insights
- Interpreting notes and creating tasks for completion
- Analyzing chatbot questions and generating appropriate responses
- Scaling multilingual experiences
- Recommending optimizations to hiring workflows
Empowering Talent Management with Generative AI
GenAI isn’t just impacting the talent acquisition process; it’s also transforming experiences for talent management teams, managers, and employees. HR gets better visibility into existing skills across the organization to strengthen workforce planning, while employees get better insight into opportunities for growth and development within the company.
GenAI empowers team leaders with advanced skills data so they can more efficiently engage employees and make progress toward their development and retention goals. These insights unlock opportunities for managers to quickly identify strengths and weaknesses across teams and individuals, highlight areas for upskilling, and pinpoint future leaders.
X+, for example, will conversationally ask managers to identify top employees for a given role. GenAI then allows managers to take those insights, and create and assign personalized learning materials and development plans tailored to each employee’s unique skills, career aspirations, and learning style – while tracking individual and team-level progress from a single dashboard. It can also be used to launch targeted training and development initiatives, ensuring employees remain adaptable and competitive in an ever-evolving business landscape.
For talent management, Phenom X+ automatically:
- Provides performance insights across teams with next steps
- Identifies succession planning opportunities for high-performing employees
- Flags employee flight risks and offers prescriptive guidance
- Detects skills gaps and surfaces upskilling and reskilling opportunities
- Generates personalized emails and campaigns, as well as audience segments to foster development
- Interprets and communicates organizational talent trends and ways to stay on pace
The Rise of AI Agents: Redefining Productivity in Talent Acquisition and Management
As intelligence advances, Large Language Model (LLM) orchestration becomes the key for GenAI to progress, especially as particular LLMs become trained to perform specific functions in the talent lifecycle. This enhanced context awareness and specialization enables GenAI models like X+ to be more informed co-pilots that create and support effective talent strategies, ultimately driving better talent acquisition and management outcomes for HR teams, candidates, and employees.
The arrival of AI Agents has inspired the advancement of Phenom X+ with X+ Agents, which understand, reason, and rapidly complete tasks such as sourcing, identifying best-fit candidates, and fostering career pathing and employee development initiatives. Rather than prompting GenAI to complete single tasks and repeating this to achieve a desired result, X+ Agents are powered by multiple GenAI models that run simultaneously to interact and guide each other, proactively revising the initial prompt.
By working together in parallel, they understand, reason, and rapidly complete tasks, drastically reducing the time HR professionals spend using tools to deliver results. This takes the productivity impact of GenAI for HR – specifically agents – to new levels. X+ Agents empower HR teams to reach new levels of efficiency by providing dynamic and complete results through natural language. Now, one prompt can lead to the completion of complex tasks that require multiple layers of coordination.
Tech Spotlight: X+ Source Agent
Let’s take a deeper look into how Phenom X+ Agents can take the same role as a sourcer and further augment productivity. Today, a sourcer’s job begins with the manual task of searching for candidates in a Talent CRM or ATS, confirming each applicant aligns with job requirements, and manually contacting each one for next steps.
With the X+ Source Agent, sourcers can automate the creation of specific jobs and specific decision-making functions, such as pre-determined knock-out questions in the screening process. X+ Source can also short-list candidates based on their fit score (which identifies and scores talent based on predetermined preferences, such as location, work experience, and skill set).
X+ Source also learns and adapts, which allows it to reach out to talent segments on behalf of the recruiter or sourcer with specialized email campaigns in a professional voice and tone. It then develops the targeted campaign and outreach to engage talent, assess their skills, and provide a summary of assessments and interviews, accelerating the hiring decision-making process. Recruiters can utilize X+ Source, our team has found that recruiters can expect up to:
- 50% efficiency gains when reviewing job requirements
- 83% time saved conducting outreach emails/calls
- 25% increase in matching best-fit candidates with personalized fit scores
Tech Spotlight: X+ Workforce Planning Agent
Developing a strategic workforce plan to hire 100 new employees is a project that would typically take weeks to complete. With X+ Workforce Planning Agent, that same task can be done in moments. The agent provides conversational prompts to develop the plan by asking qualifying questions like “How many employees need to be hired?” From there, additional context can be provided by uploading and attaching documents with more details.
X+ can take this unstructured data, develop a plan for the types of roles needed based on the criteria, and output a list of roles required to hire in seconds. The agent does not stop with the generation of the list; it also asks for ways to optimize the workforce plan around hiring goals such as speed, cost, and productivity. X+ can then identify internal candidates from the organization, tapping into ERM data, further supporting internal mobility goals and retention efforts, while maintaining low hiring costs. Additionally, the agent identifies employees who may not be the best fit now, but can grow into the role. It enrolls them in learning courses to support their development and provides insights to the manager on where the employee is in their learning efforts.
Embracing Ethical AI: Phenom’s Approach to Responsible Innovation
As Generative AI’s capabilities for HR continue to expand, addressing ethical considerations becomes increasingly crucial. Phenom has developed a relevant, thoughtful, and practical approach to ethics in AI, guided by a set of core values that shape the development process of our technology.
At the heart of Phenom’s ethical AI approach is our mission to help a billion people find the right work. This purpose-driven development ensures our AI models are designed for safe, fair, and innovative global use, empowering customers to harness AI to attract, engage, hire, grow, and retain top talent at scale.
Proactive bias prevention and fairness in AI in HR are crucial. Phenom leverages insights from industrial-organizational psychology, machine learning, and statistics to create AI systems that are inherently fairer, constantly monitoring data and outputs to catch potential issues before they become problems.
The human-in-the-loop approach is paramount and central to developing an ethical AI framework. Phenom’s AI technology is developed to help humans make more informed and objective decisions throughout the hiring process, enhancing – not replacing – human expertise.
Additionally, Phenom’s focus on adaptive, inclusive, and explainable AI ensures that their systems can work ethically across various job roles and industries, broaden the talent pools rather than narrow them, and provide clear rationales for their recommendations. Protecting individual privacy rights and ensuring data security is also a top priority, with adherence to relevant data protection and information security regulations.
The Future of Personalized Talent Management is Here
GenAI and AI Agents are at the forefront of HR technology innovation, offering comprehensive, automated, and AI-powered solutions to reshape human productivity. With GenAI functionality woven throughout an HR platform, the impact it has on talent acquisition and management is immense, further redefining how teams hire and retain employees.
The consequence of inaction is clear: organizations that fail to adopt this transformative technology risk falling behind. GenAI and agents are here and are transforming the work life of every recruiter, hiring manager, candidate, and employee by offloading tasks to enhance the entire talent journey.
Ready to see GenAI for HR in action? Get a demo of the Phenom platform today.
