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AI in HR SAP Arago
27 December 2024
Last updated 26 August 2026

how to effectively use AI in HR?

AI in human resources refers to the range of artificial intelligence technologies applied to HR processes, including recruitment, talent management, employee experience, and administrative automation.

As data volumes continue to grow and employee expectations evolve, HR teams are looking to save time on repetitive tasks so they can focus on what truly matters: human relationships and strategy.

This is precisely where AI comes into play, and where Arago has been supporting its clients for several years by combining HR expertise with a strong command of the leading tools on the market.

How and where to start?

Mapping priority processes 

The first question to ask is not, “Which AI tool should we choose?” but rather, “Which of our processes are the most time-consuming and the least differentiating?” This mapping exercise is often overlooked, yet it shapes everything that follows.

In practical terms, the goal is to identify high-volume, low-strategic-value HR tasks: CV screening, candidate follow-ups, consolidating data from multiple systems, absence management, and reporting. These are the areas where AI can free up time first.

According to McKinsey (2023), generative AI can create approximately 20% of additional value in recruitment and onboarding by improving candidate targeting and significantly reducing the risk of unsuccessful hires.

The processes best suited to an initial wave of automation include:

  1. CV screening and pre-selection through semantic profile analysis 
  2. Employee FAQ chatbot for questions related to leave, payroll, benefits, and HR policies 
  3. Automated follow-ups throughout the recruitment process 
  4. Consolidation of HR data from multiple systems 
  5. Generation of HR reports and dashboards 

Structuring the approach: from assessment to deployment 

Deploying AI in HR is not simply a technical decision; it is a strategic one. It involves decisions around data governance, security, GDPR compliance, and, above all, supporting the teams affected by the change.

This is typically where Arago's business consulting expertise comes into play: helping HR leaders structure their AI roadmap, from assessing digital maturity to operational deployment. This approach generally follows four steps:

1. Assessing the current environment: mapping processes, evaluating data quality, and reviewing the existing HR information system. 

2. Defining priority use cases: based on potential ROI and technical feasibility. 

3. Selecting and integrating the right tools: choosing solutions, configuring them, and connecting them to the existing HR ecosystem. 

4. Training teams and managing change: supporting HR teams and implementing relevant performance indicators. 

This step-by-step approach helps avoid two common pitfalls: poorly defined AI projects that never get off the ground, and rushed deployments that generate internal resistance.

Choosing the right AI tools for HR 

The solutions available on the market generally fall into three main categories: AI capabilities integrated into existing HR systems, such as SAP SuccessFactors, Workday, or Cornerstone with AI modules; specialised solutions focused on a specific use case (AI-powered ATS, HR chatbots, or talent analytics); and general-purpose AI platforms that can be adapted to HR contexts.

The right choice depends primarily on the digital maturity of the existing HR ecosystem, the size of the organisation, and the complexity of the processes being targeted. A company with 300 employees does not have the same needs or constraints as a group with 5,000 employees.

CriteriaTraditional ATSAI-powered ATS
CV screeningPredefined keywordsSemantic analysis: understands meaning, not just keywords
Candidate-job matchingManual assessment by the recruiterAutomated predictive matching score
Retention predictionNot availableYes: based on historical hiring data
Risk of biasLower, but dependent on the recruiterRequires careful monitoring and regular audits
Productivity gainsBaseline+35% observed across AI-enabled processes (source: Deloitte, 2023)

Training teams and managing change 

An AI tool can only deliver results if the people using it understand what it does and, equally importantly, what it does not do. Training should therefore go beyond technical adoption and focus on the ability to interpret AI-generated recommendations, challenge them, and make informed decisions.

Companies that invest in developing these skills tend to achieve significantly better results than those that simply deploy a tool and expect adoption to happen naturally.

Getting started with AI in HR

What are the opportunities for companies?

AI applications in human resources go far beyond recruitment. Here are some of the main use cases adopted by organisations that have embraced AI, as its range of applications continues to expand.

Predictive recruitment 

This is often the first use case that comes to mind, and for good reason: AI can deliver immediate and measurable benefits in this area. It can analyse CVs at scale, assess cultural fit beyond technical skills alone, and predict a candidate's likelihood of success in a specific role.

In practice, this means faster pre-screening processes, more relevant shortlists, and recruiters spending less time sorting through applications and more time evaluating candidates.

Intelligent onboarding 

Onboarding a new employee is a critical phase that can influence both productivity and retention during the first few years. AI can personalise onboarding journeys, automate administrative procedures, and guide new employees through virtual assistants available around the clock.

HR chatbots can answer recurring questions about access to tools, internal processes, or expense reimbursement policies without taking up valuable time from HR teams.

Talent management and internal mobility 

AI can analyse employee potential by combining performance data, declared skills, training history, and behavioural signals. It can suggest relevant internal mobility opportunities before employees start looking elsewhere for opportunities the organisation could have offered them.

This is one of the use cases with the strongest long-term ROI, as the cost of employee turnover and external recruitment can significantly exceed that of a well-managed internal mobility programme.

Learning and skills development 

AI-powered LMS platforms, such as Cornerstone or 360Learning, can analyse skills gaps at both individual and organisational levels and recommend relevant learning paths. Training is no longer a generic catalogue but a personalised experience aligned with business objectives.

According to the WEF's Future of Jobs Report 2025, 39% of existing skills are expected to be transformed or become outdated by 2030 (2025). HR leaders therefore need to anticipate these changes and prepare their teams for jobs that are rapidly evolving.

Employee experience and retention 

AI-powered HR platforms can identify early signs of dissatisfaction before they lead to resignations: sentiment analysis of internal surveys, absenteeism patterns, and changes in engagement scores.

These early alerts allow managers and HR teams to intervene at the right time, through a conversation, a training opportunity, or an internal mobility option, rather than simply reacting once an employee has decided to leave.

Automating administrative tasks 

Document processing, drafting interview summaries, consolidating data from multiple sources, and producing regulatory reports: AI can take over time-consuming and repetitive tasks that consume valuable time without creating significant added value.

McKinsey estimates that AI can reduce the time spent on HR administrative tasks by 20%, potentially freeing up several days each month for a mid-sized HR team—time that can be reinvested in people and higher-value activities. 

AI opportunities in HR

Pitfalls to avoid

Protection of personal data (GDPR) 

HR data is among the most sensitive data an organisation handles: health information, performance evaluations, personal circumstances, and trade union membership data. Any processing involving AI must be based on a clearly defined legal basis, employees must be informed in advance, and a Data Protection Impact Assessment (DPIA) may be required where the processing is likely to result in a high risk to individuals' rights and freedoms.

The GDPR does not prohibit AI: it provides a framework for its use. Meeting these requirements is not an obstacle to an AI project; it is a condition for its long-term sustainability.

DPIA (Data Protection Impact Assessment)

A DPIA is required under the GDPR for processing operations that are likely to result in a high risk to the rights and freedoms of individuals. It should be carried out before deploying AI systems involving sensitive HR data and documented to demonstrate compliance.

Algorithmic bias and fairness 

An AI model trained on historical data tends to reproduce the biases present in that data. If past recruitment decisions have favoured certain profiles, AI may perpetuate these patterns, sometimes in ways that are less visible and therefore harder to challenge than a human decision.

Addressing this issue is not optional. It requires regular audits, diverse testing teams, and an internal culture that questions AI recommendations rather than applying them blindly.

  1. Audit models using diverse datasets at least every six months 
  2. Involve HR, legal, and data teams in the design and governance of AI systems 
  3. Require human review for AI recommendations that inform high-impact HR decisions 
  4. Prioritise vendors that can demonstrate robust fairness and bias-testing practices 

Over-reliance and loss of internal expertise 

AI is a decision-support tool, not a decision-maker. The risk of over-reliance is real: HR teams that simply validate algorithmic outputs can gradually lose their ability to assess candidates and situations independently.

The principle is simple: final decisions regarding recruitment, performance evaluation, or promotion remain a human responsibility. AI provides information; HR professionals make the decisions.

What the AI Act changes for HR leaders

Since August 2024, the European AI Act has been progressively coming into force across organisations using AI in Europe. For HR, the impact is significant: AI systems used for areas such as recruitment, performance evaluation, and workforce management can fall within the Act's high-risk category, which is subject to the strictest requirements.

In practical terms, AI systems used to screen candidates or support employee evaluations may be subject to requirements relating to transparency, documentation, risk management, and formal human oversight. Compliance responsibilities do not rest solely with the software provider: organisations deploying these systems also have obligations under the regulation.

Penalties for certain violations can reach up to €35 million or 7% of global annual turnover. Anticipating compliance requirements when selecting AI tools, rather than addressing them urgently later, is precisely where Arago supports its clients. 

Why will AI redefine HR roles by 2030? 

The projections point in the same direction: the World Economic Forum and the McKinsey Global Institute both anticipate a profound transformation of the world of work over the coming years.

  1. 30% of current workplace tasks could be automated (WEF, Future of Jobs 2023)
  2. 170 million new jobs are expected to be created by 2030, compared with 92 million jobs displaced (WEF, Future of Jobs, 2025)
  3. 23% of current jobs are expected to undergo significant change (WEF, Future of Jobs 2023)
  4. 14% of current jobs could disappear (WEF, Future of Jobs 2023)
  5. $15.7 trillion could be added to the global economy by AI by 2030 (PwC, Sizing the Prize, 2017)

What this means for HR leaders is that they are no longer simply managers of human resources; they are becoming architects of the transition. Anticipating the impact on jobs, managing reskilling and career transitions, and creating the conditions for confident and sustainable AI adoption are strategic responsibilities, not merely technical ones.

FAQ

What are the first AI use cases to test in HR?

Start with low-risk, high-volume use cases: CV screening, employee FAQ chatbots, and automated follow-ups. These three use cases can deliver measurable benefits within 4 to 8 weeks and allow your teams to gradually build their skills without disrupting the organisation.

Is AI in HR compatible with the GDPR?

Yes, under certain conditions: a clear legal basis, prior information for the individuals concerned, a DPIA for high-risk processing, and guaranteed employees' right of access. The GDPR provides a framework for AI; it does not prohibit it. Arago supports its clients in ensuring compliance for their HR AI projects from the initial scoping phase.

How can you prevent bias in recruitment algorithms?

Audit your models using diverse datasets, involve a multidisciplinary team (HR, legal, and data) in their design, and require human validation for any recommendation. Some vendors offer algorithmic fairness certifications, making this an important selection criterion not to overlook.

What is the difference between a traditional ATS and an AI-powered ATS?

A traditional ATS filters applications based on fixed criteria (predefined keywords). An AI-powered ATS adds semantic profile analysis, a predictive matching score, and an estimate of the candidate's likelihood of retention, based on the company's historical hiring data.

How long does it take to deploy AI within an HR function?

A pilot project within a defined scope (e.g. recruitment for a specific department) can be launched within 4 to 8 weeks. An organisation-wide deployment in a mid-sized company generally takes 6 to 18 months, depending on the complexity of the existing HRIS and the teams’ level of digital maturity.

Key takeaways

  • AI in human resources goes far beyond recruitment: onboarding, learning and development, internal mobility, employee experience, and administrative automation. Each use case should be prioritised based on its potential ROI and the maturity of the existing HRIS.
  • McKinsey estimates that AI can generate up to 20% of additional value in recruitment and reduce the time spent on HR administrative tasks by 20%.
  • Deploying AI requires strong upfront planning: DPIAs where required under the GDPR, active monitoring of algorithmic bias, team training, and human oversight for sensitive decisions.
  • HR leaders are not simply experiencing this transformation: they are leading it by anticipating its impact on jobs, supporting reskilling and career transitions, and promoting a human-centred approach to AI.
  • Arago supports organisations throughout their HR AI journey, from assessing digital maturity and selecting the right tools to operational deployment and change management.

Human Resources must not only adopt AI to improve their own function and transformation but also play a role as "guardians of the temple" in supporting and impacting employment in other functions and jobs within the company.

For personalised support in integrating AI into your HR processes, our experts at Arago are at your disposal. We guide our clients step by step to activate the right levers at the right time, depending on the maturity of each company. AI is becoming indispensable, but it is essential to define its scope of action in a personalised way. Do not hesitate to contact us to learn more about using AI in HR.