AI-Driven HR Practices: Recent Trends in Digital HR Tools and Their Perceived Benefits

Human resource management (HRM) has undergone substantial changes in recent times, largely propelled by the rise of digital technologies. The shift towards digital HRM involves harnessing technology to administer human resources functions, spanning areas such as recruitment, performance management, and employee engagement. This paper intends to delve into the concept of digital HR, investigate the prevalent digital HR tools, and analyze their perceived advantages. Adopting a qualitative research design, we took interviews of 25 HR managers and used thematic analysis to find the recent trends and the perceived benefits. We found that the most common digital HR tools include employee self-service, chatbots, AI-driven ATS, people analytics, digital onboarding, digital adoption platforms, and cloud-based human capital management in that order. Next, we found a strong positive correlation between the size of the organization and the number of digital HR tools adopted for use. And last of all, we found that perceived benefits of digitalization of HR included increased efficiency, technology-enabled productivity, augmented employee experience, and data-driven decision-making.