Yes, HR Organizations Will (Partially) Be Replaced by AI, And That’s GoodI adore the human resources profession. These folks are responsible for hiring, development, leadership development, and some of the most important issues in business. And despite the history of HR being considered a compliance function, the role is more important than ever. CHRO salaries, for example, have increased at 5-times the rate of CEO pay over the last twenty years, demonstrating how essential HR has become.
That said, we have to be honest that AI is going to disrupt our role. This week IBM formally announced that 94% of typical HR questions are now answered by its AI agent, and the role of HR Business Partner is all but eliminated except for very senior leaders. As a result the CEO plans to reduce HR headcount and shift that budget towards sales and engineering.
Let’s accept the fact that we are in a time of increasing acceleration. In other words, the capabilities of AI are growing much faster than our organizations” ability to adapt, so we have to lean forward and start redesigning our companies. In the case of HR, our Systemic HR model (which we launched two years ago) is now being fully automated by AI.
I know IBM’s story well, and I think it explains where all HR teams are going. Many years ago Diane Gherson (prior CHRO) started AI projects to automate recruitment, pay analysis, and performance management. She spoke at our conference eight years ago and shared how IBM’s pay tool (CogniPay was launched in 2018) uses AI to make pay recommendations based on skill. This type of tool, which was years ahead of the “skills-based” strategies we see today, essentially automated many of the performance and pay decisions left to managers.
Since then IBM has gone much further, and in my last conversation with Nickle Lamoureux (current CHRO) she told me the AI agent helps write performance reviews, creates development plans, and coaches managers and senior leaders on a myriad of performance based decisions. I totally believe this because I see Galileo doing these kinds of things for companies every day. (Check out the Mercury release.)
How does this impact the roles and jobs in HR? Well it definitely eliminates many.
In the case of L&D or HR business partners, I believe we could see a 20-30% or more reduction in HR headcount per employee. And that means these individuals may wind up managing the AI platforms, moving into roles as change consultants (which AI still can’t do), or move into areas like org design, learning architect, and data management.
I think this is all a good thing. While we all worry about AI taking our jobs, we have to remember that our real job is not to “do things” but to “add value” and bring complex problem solving skills to our companies. And in this journey to “crawl up the value curve,” we all have to learn to use AI, develop AI solutions, and think more systemically about how our companies go to market.
I recently interviewed a brilliant HR leader (podcast coming) at WPP who explained how he and his team rationalized their job architecture from 65,000 job titles to only 600 by using new AI tools from OpenAI and Reejig (a work intelligence vendor). As you’ll hear in his story, this effort was a combination of data management, business analysis, change management, and leadership. The results of this work, which are still ongoing, is the opportunity for WPP to dramatically change its go to market strategy, innovation, and growth.
That’s the kind of thing we want our HR teams to do.
And as these various agents hit the market (see my latest view of the market below), HR professionals are going to have to train them, implement them, and “manage them” for long term success. This means analyzing the cross-functional data they produce, extend them into better decision-making, and move our thinking from dated concepts like “time to hire” and “course completion rates” to meaningful measures like “time to revenue” or “time to productivity” or “time to customer service excellence.”
See where I’m going? In a time of increasing technology acceleration we have to “lean in” as hard as we can.
Stop thinking about how much money we save on headcount (which is a fleeting benefit, by the way) and focus on value creation. That’s the big benefit of AI: customer service quality, time to market, and innovation.
In many ways these “HR downsizing” stories are really stores of “HR crawling up the value curve,” which is really a good thing. And for HR professionals, it’s a time for personal reinvention.
Cost Savings
2025年05月16日
Cost Savings
Will Chatbots Take Over HR Tech? Paradox Sets The Pace.在快速发展的人力资源技术领域，Paradox.ai 已成为领跑者，其先进的对话式人工智能平台彻底改变了招聘流程。通过利用自然语言处理和人工智能，Paradox.ai 提供了一个全面的解决方案，涵盖了从最初的职位申请到入职的整个招聘过程。该平台不仅简化了筛选和面试安排等繁琐流程，还提升了应聘者的整体体验，显著改善了招聘时间和招聘质量指标。
Paradox.ai 由亚伦-马托斯（Aaron Matos）于 2016 年创立，目前为联合利华、CVS Health 和通用汽车等大客户提供服务，实现了 90% 以上的招聘流程自动化。
Paradox.ai 凭借其强大的集成能力和大幅缩短招聘时间、降低招聘成本的能力，在人力资源技术领域充分体现了对话式人工智能的变革力量。
Chatbots used to be tinker-toys. You type, try to get help, but usually result in “please call support.” Well all this has changed.
Thanks to advanced NLP (natural language processing) and AI (retrieval-augmented generation) chatbots are entire applications. They can answer complex questions, search databases, and invoke transactions on your behalf.
Pretty soon we’ll be able to ask our phones “please find me a flight to Los Angeles next Tuesday morning” and the system will check your location and calendar, look at flights, and book you a seat.
Where is this going in HR? Well the leader in this space is Paradox.ai, a company that pioneered the application of conversational AI in recruiting. And their system “defines the category.”
Let me explain.
Recruiting Is The Perfect Market For Conversational AI
Recruiting is a goldmine for automation. When you post a job, applicants want to ask many predictable things: “How much does it pay?” “What are the hours?” or “What uniform do I need” or “What are the benefits?”
The recruiter, a person devoted to filling positions, has to answer all these questions and more. They have to screen candidates, schedule interviews, check for qualifications, and look at credentials, experience, and more. It’s time-consuming, error-prone, and filled with wasted time. (That’s why talent acquisition teams have many “scheduler” and admins.)
The average “time to hire” is over 45 days and often the process goes on for months. And throughout the experience the job seeker is left wondering “when will they call back” or “what else do I need to know?”
(CEOs cite hiring as the third most time-wasting process in companies, following emails and meetings, estimated at “40% wasted time.”)
Paradox uses Conversational AI to solve this problem. And because this is a “narrow but deep” space, the system does many things we can learn from in all our AI efforts.
Paradox was founded by Aaron Matos in 2016. Aaron’s vision was to transform the candidate experience, revolutionizing the way candidates apply to jobs. Today Paradox has become a complete Conversational AI Recruitment Platform (chat to apply, scheduling, candidate support, ATS, assessments, onboarding, career site, and more), serving clients like Unilever, CVS Health, Pfizer, L’Oreal, Nestle, McDonald’s FedEx, Compass Group, Disney, and General Motors.
The platform automates tasks such as screening for requirements, interview scheduling, reminders, offers, and new hire onboarding. And because it’s so easy to use, it helps companies radically improves time-to-hire and quality of hire. Based on my conversations with clients, Paradox can automate more than 90% of the end-to-end hiring process, saving hiring managers hours every week and increasing candidate conversion by more than 10 times.
But this innovation did not happen overnight. As you know, going to a candidate website and looking for a job is a frustrating process. There are often hundreds of jobs listed, a complex scrolling website and very hard to even determine what job to apply for.
You might argue that the website paradigm for job applications was never really a good idea in the first place. People don’t want to browse for jobs: they want to apply for a job that’s best for them. So the first thing Paradox did was create an easy to use assistant (Olivia) so candidates could ask questions and schedule interviews. And this meant that Paradox had to build integrations with every ATS and personal email and calendar tools out there.
Then, as companies started to use Paradox for scheduling, the company added more. Today Olivia, the chatbot, can integrate with background check vendors, schedule interviews, deliver assessments (Paradox acquired a conversational assessment Traitify designed for this), and function as an ATS … all from a mobile phone. In many ways Paradox can be “the integration platform” for candidates and recruiters, stitching together the messy systems behind the scenes.
This turned into a massive opportunity. Just as the Google Assistant or Siri hopes to be our single contact with the internet, Paradox partners with systems of record like Workday, SAP, and Oracle to bring conversational AI to any company. The company’s revenues have grown 11 times in the last four years, and are now nearly doubling each year.
For customers Paradox has been amazing. As the candidate pipeline speeds up (by an order of magnitude), clients get higher quality candidates with dramatically reduced staff. (Staffing administrators can almost go away.)
Consider high-volume hiring companies. These businesses (McDonald’s, Compass Group, Neighborly, FedEx, Disney) hire service-related workers on a regular basis. Their revenue is dependent on having enough people. With Paradox they can set up a “continuous recruitment process,” one that even hires people the same day they apply.
Paradox has become essential to these companies growth, often paying for itself in less than a year (through reduced hiring staff, reduced spend on job ads, and reduced turnover.)
Today, as Paradox built out its ATS, customers can rely on the platform to integrate front end tool (job portals and candidate support) to back end tools scheduling, ATS, onboarding) most of which are legacy. One of our clients has 27 recruiting tools and they anticipate replacing more than half of them with a platform like Paradox.
What about higher level white collar roles? Paradox works here too. General Motors uses Paradox along with Workday (ATS), (branded Evie) to redesign the process.
Interview Scheduling: Evie automates scheduling of phone screens and interviews between recruiters, candidates, and internal teams. This has reduced the time taken for interview scheduling from an average of five days to 29 minutes.
Candidate Experience: Evie interacts with candidates from the moment they land on GM’s career site until the completion of their interview. Candidates appreciate the immediate communication from Evie after they apply or complete an interview, and enjoy the autonomy to select and change interview times.
Efficiency and Cost Savings: The automation of interview scheduling has led to a major reduction in the cost of external contractors for coordination.
Career Site Interaction: Evie sits on GM’s career site, answering questions from potential candidates about jobs, benefits, and company culture. This interaction enhances the candidate’s experience and provides them with immediate responses to their queries.
Where Is Paradox Going
The company is perfectly positioned to continue its growth as companies look for AI solutions to improve the productivity and effectiveness of recruiting. And demand is high: the 2024 PwC CEO survey found that recruiting was considered the #3 “most bureaucratic process” by CEOs (following email and meetings).
The impact on recruiters? All positive. Clients tell us they can redeploy hiring staff to help recruiters focus on the most important part of their job: talking with candidates.
But there’s a much bigger story. When a job candidate is handled efficiently and effectively the process becomes a brand-builder for the candidate, improving quality of hire. Ambitious job seekers will not put up with (or wait for) a messy, confusing hiring process. So not only is the process faster and more efficient, the quality of hire goes up.
Companies are desperately looking for AI solutions that work. As Paradox has proven, when you focus deeply on the problem, conversational AI can be transformational.
Listen to my conversation with Adam Godson (CEO) and you’ll hear the details. This is where the HR Tech market is going.
Cost Savings
Cost Savings
扫一扫
添加客服
