5 advantages and disadvantages of using AI in HR

The pros of using AI in HR

Some of the benefits of using AI in HR involve automating routine work, improving service delivery and helping HR employees analyze information more quickly. Those benefits are strongest when AI is used for clearly defined tasks and humans remain responsible for final decisions.

1. AI can save time

AI can potentially offer significant time savings for HR departments by eliminating routine tasks.

For example, generative AI can assist with tasks such as fielding routine employee inquiries, said Julia Lamm, workforce transformation partner at PwC, a research and advisory firm headquartered in New York. A generative AI engine can answer questions about vacation allocation or the process involved when an individual is applying for a leave of absence. HR employees could also potentially use generative AI to create the internal announcements they regularly distribute throughout their organization's communications channels.

AI can also potentially help with more knowledge-intensive projects, such as training content development.

Julia Lamm

One of Lamm's clients used a generative AI tool to develop a production script for a training video about ethics and compliance.

"It was a really solid first draft that they said they might have spent a couple of weeks working on [otherwise]," she said.

Automating interview scheduling can also potentially save recruiters time, as can AI mapping employee skills and identifying skills gaps, Lamm said.

AI can also support employee experience by helping employees find information faster, but HR teams should make clear when employees are interacting with AI and when they can escalate to a person.

2. AI can reduce errors

AI can reduce some errors in standardized, repeatable HR tasks, such as data entry, routing requests or applying consistent rules to a defined workflow. However, HR leaders should avoid assuming that AI output is automatically correct.

Factors that compromise how humans perform their jobs, such as fatigue, don't affect AI, said Alexander Kriebitz, a postdoctoral researcher at Ludwig Maximilian University of Munich, who specializes in AI and human rights.

"For those tasks that can be replicated [and] that are very standardized, AI appears to be better than human beings," Kriebitz said.

That advantage is narrower when tasks require context, judgment or sensitive employee decisions. In those cases, AI can still help organize information, but HR should review the result before acting on it.

The cons of using AI in HR

HR leaders should be aware of the drawbacks of using AI in HR as well. Using AI without governance, testing and communication can lead to employee distrust, candidate frustration, inaccurate decisions and organizational legal risk.

1. AI can be biased

AI bias during the hiring process is one of the biggest drawbacks of using AI in HR. AI tools can reflect bias in training data, job requirements, scoring models or the way the organization uses the tool.

Regulatory pressure is also increasing. Some jurisdictions already require or are developing rules for employers that use automated tools in hiring or other employment decisions. HR leaders should work with legal counsel to understand which requirements apply to their organization.

Paul Starkman

HR leaders must ensure they're adopting products that don't expose their organizations to risk, said Paul Starkman, labor and employment attorney with Clark Hill PLC, a law firm located in Detroit.

"They're going to be responsible for their vendors' decisions and choices [as well as for] the products that they choose to use in their organization," he said.

HR leaders should ask certain questions during the software purchasing process to ensure they're aware of any potential bias.

Company leaders should develop ethical procurement standards for vetting vendors, including those selling AI-driven technology, Kriebitz said. Those standards should require vendors to explain how their AI models work, what data the tools use, how the vendor tests for bias and what documentation the vendor provides.

HR leaders should also test AI technology before deploying it and continue monitoring it after launch. Testing should use the organization's own data when possible, not only vendor-provided examples.

"After the test, try to understand -- with your own data, not data provided by the external party -- how the system functions and whether there have been cases of discrimination," Kriebitz said.

HR should document the tool's purpose, the people responsible for oversight, the data used, the testing performed and the human review process. That documentation can help the organization respond to employee questions, audits or legal challenges.

2. Employees don't trust AI accuracy

While AI might be capable of responding to routine employee inquiries, employees might not be confident that they're receiving accurate information. Generative AI tools can also produce outdated, incomplete or incorrect answers if they are not connected to approved HR policies and current data.

Lamm's clients say their HR employees' work has not been reduced by chatbots because employees still follow up with HR to confirm the information.

"I don't think the trust is really there yet," Lamm said.

HR teams should create a clear escalation path so employees know when an AI answer is informational and when they should contact HR, payroll, benefits or another internal team for confirmation.

3. Employees and job candidates distrust AI use

Candidates might lose trust in a company's recruiting process if they know that AI is part of their evaluation, especially if the company does not explain how the tool is used or whether a person reviews the result.

Alexander Kriebitz

If job candidates find out AI was involved in the hiring process, they might question their rejection, Kriebitz said.

Companies must clearly communicate how they're using AI so their employees -- and, potentially, job candidates -- feel comfortable with organizational operations. That communication should explain where AI is used, what the tool does, what humans review and how people can ask questions.

Companies must share the fact that they're using AI, its company uses and the oversight from humans, Starkman said.

"If people think that it's all Big Brother and that we're being managed by machines versus people, that's going to make the employment situation much more adversarial," Starkman said.

Transparency is the key.

"[If the AI use isn't transparent, then] it's going to cause more problems than it might be worth," Starkman said.

Transparency alone is not enough, however. HR leaders should also make sure AI use is tied to a clear business need, governed by policy, reviewed by humans and monitored after deployment.

AI can help HR teams save time, improve service and reduce some manual work, but those benefits depend on trust and oversight. HR leaders should inventory where AI is already being used, test tools before broader deployment, define human review points and communicate clearly with employees and candidates. A governed approach can help HR use AI without weakening fairness, privacy or employee confidence.

Editor's note: This article was originally published in 2025 and was updated to reflect current AI governance, employment-law and HR technology considerations.

Carolyn Heinze is a Paris-based freelance writer. She covers several technology and business areas, including HR software and sustainability.