How to Buy AI Solutions for HR: A Comprehensive Guide

76% of HR leaders believe that if their organisation does not adopt and implement AI solutions, such as generative AI, in the next 12 to 24 months, they will be lagging in organisation success compared to those that do, Gartner.

There is no doubt that artificial intelligence (AI) is transforming the future working styles of human resources (HR), by offering innovative solutions to improve efficiency, enhance decision-making, and elevate the overall employee experience. In a cost conscious world this has to be good news.

However, the process of selecting and purchasing AI tools can be daunting, especially given the myriad of technical options available.

This short guide aims to demystify the process and provide HR professionals with actionable steps to make informed decisions when buying AI solutions.

Our employees confidently use AI and expect HR to lead with solutions that match their advanced technical skills, Tess Hilson-Greener, CEO AI Capability Ltd

Identify Your Needs and Objectives

Before diving into the market, it’s crucial to clearly define your HR needs and objectives. Consider the following areas where AI can make a significant impact:

• Recruitment: Automating candidate screening, scheduling interviews, and enhancing job matching.
• Employee Engagement: Monitoring and improving employee morale through sentiment analysis and feedback tools.
• Performance Management: Streamlining performance reviews, providing real-time feedback, and identifying high performers.
• Learning and Development: Personalising training programs and tracking progress.

Document your specific goals and pain points to create a clear picture of what you need from an AI solution. We recommend an AI HR Impact Assessment.

AI is poised to change the future of HR forever, disrupting established views of work, talent, roles and skills, Gartner.

Research Available AI Solutions

Once you’ve identified your needs, conduct thorough research on the AI solutions available in the market. Look for tools that specialize in HR functions and have a track record of success. Some key aspects to consider include:

• Identify Needs: What HR operation could be streamlined, improved or increased by introducing automation e.g, engagement survey results.
• Features: Ensure the AI solution offers the functionalities you require.
• Integration: Check if the AI tool can seamlessly integrate with your existing HR systems.
• Scalability: Choose a solution that can grow with your business and team’s capabilities.
• User-Friendliness: Opt for tools that are easy to use and require minimal training.

Evaluate Vendors

Not all AI vendors are created equal. It’s essential to evaluate potential vendors to ensure they align with your needs. We assess AI vendors, and here are some criteria to consider:

• Reputation and Experience: Look for vendors with a solid reputation and experience in the HR domain.
• Customer Support: Assess the quality of customer support and training provided.
• Security and Compliance: Ensure the solution complies with relevant data protection regulations and has robust security measures.
• References and Case Studies: Request references and review case studies to gauge the vendor’s success with similar organisations.

Pilot Programs and Demos

Before making a final decision, request pilot programs or demos from shortlisted vendors. This allows you to test the AI solution in a real-world setting and assess its effectiveness. During the pilot phase, gather feedback from HR team members who will be using the tool to ensure it meets their needs and expectations.

Cost Analysis

AI solutions can vary significantly in cost, so it’s important to conduct a comprehensive cost analysis. Consider the following factors:

• Upfront Costs: Initial purchase price, installation fees, and training costs.
• Ongoing Costs: Subscription fees, maintenance, and support costs.
• ROI: Estimate the potential return on investment by considering time savings, improved efficiency, and enhanced decision-making capabilities.

Implementation and Training

Successful implementation of an AI solution requires careful planning and execution. Work closely with the vendor to develop an implementation plan that includes:

• Timeline: Set realistic milestones and deadlines.
• Training: Ensure thorough training for HR team members to maximise the tool’s potential.
• Support: Establish a support structure for addressing any issues that arise post-implementation.

Monitor and Evaluate

After implementation, continuously monitor the performance of the AI solution. Gather feedback from users, track key performance indicators (KPIs), and measure the impact on HR processes. This ongoing evaluation will help you fine-tune the tool and ensure it delivers the desired outcomes.

My Conclusion

Investing in AI for HR can bring substantial benefits, from streamlining processes to enhancing employee engagement and decision-making.

By following these steps—identifying needs, researching solutions, evaluating vendors, testing tools, analysing costs, planning implementation, and monitoring performance—HR professionals can confidently select and purchase the right AI solutions for their organisation.

As AI technology continues to evolve, staying informed and adaptable will be key to leveraging its full potential in the HR landscape. If you want to discuss contact us here at AI Capability, Trusted HR AI Advisors.