How AI can lighten your HR workload

Artificial intelligence (AI) is changing how small businesses manage human resources (HR) functions, taking on administrative tasks and freeing leaders’ time for the conversations and decisions that need human involvement.

These advances can support small businesses through periods of turbulence and economic uncertainty, says Anukta Philip, a Senior Business Advisor with BDC Advisory Services.

“When businesses have to pivot quickly, one of the first things they usually do is either let go of people or hire them,” she says. “Both are critical HR functions that can create a lot of pressure for businesses that are too small to have a fully fledged HR department.”

You may be able to offload some of that pressure to AI.

What HR tasks can AI take on?

When it comes to HR tasks, AI tools can:

• write job descriptions
• find potential candidates and match applications to job requirements
• schedule interviews and communicate with applicants
• prepare interview questions and guides to help you assess candidates
• create onboarding plans
• answer routine questions about the company from candidates and new hires
• draft learning and development plans
• prepare performance review templates

AI is well-suited to tackling jobs that are routine, administrative and repeatable, says Philip. Major decisions about corporate strategy and hiring are best left to humans.

Explore your options

If you use paper or spreadsheets to manage HR, going digital by moving your records and routine processes into HR software can save you time and prepare your business to use AI. 

To choose the best product for the job, start by assessing what you already have on hand.

For example, basic office packages like Microsoft 365 and Google Workspace can include Copilot and Gemini (respectively) as AI tools. 

Other types of software include:

• standalone solutions (like ChatGPT or Claude)
• integrated HR platforms (like Workday, Folks HR or Collage HR), which can include AI alongside other tools for everyday functions

You may come across both generative and agentic AI in any of the above tools, so it’s worth understanding what they can do.

Generative AI and agentic AI for HR

Agentic AI is included in some integrated HR platforms. It can also be included with commonly used AI packages. ChatGPT Work, Claude Cowork and Copilot Cowork are all examples of agentic AI.

Some HR tasks can be automated without necessarily using AI. Scheduling and payroll software may combine automation with AI features. 

AI agents are not free labour, notes Philip. Check your chosen provider’s pricing page and billing terms to make sure you understand how usage will be charged, such as through a monthly subscription fee and/or tokens. (You can also save money by giving agents narrow, well-defined tasks.)

Start with your business needs

To choose among all these options, step back and get clear on the people and skills your business actually needs. 

Philip recommends conducting a needs assessment:

• What is the business’s direction? 
• What roles are needed to achieve it?
• What does success look like to you?

Nowhere does that clarity matter more than when you're defining a new role.

“Before you consider what AI can do for you, sit down and figure out what your business needs to get from point A to point B,” she says. “That clarity will help you understand what kind of people and skills you need.”

This knowledge is particularly important when creating job descriptions. But the same principle—clear direction in, useful results out—applies throughout the employee journey, from a candidate’s first contact to onboarding, development and performance discussions:  

1. Think about the experience you want people to have.
2. Identify the administrative work that supports it.
3. Then get AI involved.

Map out where humans and AI fit

Once you’re ready to implement AI for HR, keep in mind that being able to automate a task doesn’t necessarily mean you should.

“Can an agent do this? Yes, absolutely. Should an agent do this? That’s the question on the table” for each possible task, says Philip.

To figure out whether to use AI or human labour for any given HR task, start with a familiar process—like recruiting a new employee—and decide whether human or AI labour is best positioned to accomplish each step.

For example, you can use a table like this to think through the ideal workflow. 

How to assess an HR process for AI use – Recruitment process example

You can put together similar maps for the steps involved in other HR processes, such as coordinating an engagement survey or drafting a template for performance reviews.

Know the risks

The three main risks related to using AI in HR, says Philip, concern data leaks, decision-making and accuracy.

Protect employee information

Employees’ personal data needs careful handling. Business or enterprise plans may offer better security controls and privacy protections.

Set clear rules about what information people can share and how. Review your AI provider’s settings and terms to make sure you’re comfortable with how (and for how long) data are stored.

Keep people in control of decisions

AI can organize information about people’s skills, experience and credentials, but data alone can’t tell the whole story. 

Keep a human in the loop so you don’t overlook context and working relationships in decisions, says Philip. 

Check for bias and inaccuracy

A human should also check AI recommendations for errors, biases and fabricated information (hallucinations). 

For example, an AI screening tool might overlook a qualified candidate whose resumé describes relevant experience using terminology that doesn’t match the job posting.

Begin with one manageable task

To get started, Philip recommends following these steps:

1. Choose a repeatable, time-consuming task to assign to AI.
   Pick something that doesn’t require sensitive information—like drafting a job description or interview template.
2. Provide clear, focused inputs.
   Give the AI tool specific instructions and boundaries.
3. Assign a human employee to review the results.
   They should check for bias and ensure the output is accurate and appropriate.
4. Evaluate the results.
   Consider whether the work was useful and saved you time. If so, continue with it and add on from there.

As your business grows, keep thinking through your workflows. Identify every point where information changes hands and every decision that requires a person. This way, you can maximize your use of AI while protecting confidential data and staying in control of key decisions.

Ultimately, the goal isn't to replace your HR team. It's to free them up for the work that most needs human judgment.

Next step

Identify use cases for AI in your business by downloading BDC’s free Get started with AI checklist.