AI in Human Resources: The HR Trend for 2025

Artificial intelligence (AI) is no longer a futuristic concept. In fact, AI tools have become firmly established in the day-to-day work of many people and companies. A 2024 study [1] by the industry association Bitkom found that one in five companies in Germany already uses AI tools on a regular basis.

In the coming years, more and more HR tasks will be simplified with the support of this new technology. The Bitkom study also revealed that there’s still significant untapped potential for AI in HR: while only a few companies currently use such tools in their HR departments, more than half of the respondents stated that they would like to rely more heavily on artificial intelligence in their day-to-day HR work. As such, it is high time to explore the diverse possibilities and benefits of AI in HR.

In this blog post, we shed light on how AI can make HR work easier, more efficient, and even more human in the future. Before wrapping up, we summarize some of the opportunities and challenges associated with this new technology.

AI-powered tools help personalize communication with employees, allowing companies to better address the needs of their workforce. With AI, personalized emails can be created, for example, to announce company news, congratulate employees on their birthdays or work anniversaries, or inform them about company events. In addition, AI can simplify the creation of newsletters, instructions, or internal circulars by suggesting draft texts and adapting them to HR guidelines.

AI also offers significant potential in contract management. It can greatly accelerate the creation of standardized documents, such as employment contracts, references, and written warnings. A key advantage of AI in these processes is that it not only streamlines tasks but also helps prevent errors and standardize communication in the HR department – whether by ensuring accurate language use or maintaining compliance with internal standards.

AI Simplifies Personnel and Knowledge Management

One of AI’s greatest strengths is its ability to process large amounts of information in a fraction of a second, analyze it intelligently, and prepare it for specific purposes. In HR, this capability can be used to efficiently search internal documents, such as personnel files. This makes it easy to find specific information with the help of AI.

In practice, this could look like HR staff using an AI-powered chat to retrieve specific information from a digital personnel file. For example, an HR officer could ask the AI, “How much does employee XY earn?” The AI would then instantly provide the answer and, if necessary, display the relevant employment contract on the screen.

AI handles administrative tasks

A large part of HR work involves administrative tasks: from managing employee data and organizing training courses to handling onboarding and offboarding processes. In the near future, various AI tools will provide extensive support to HR staff in these areas.

For example, AI can streamline the coordination of everyday HR appointments by automating the scheduling of employee meetings, training sessions, and team discussions using AI-powered calendars and planning tools. This is where AI comes into its own again, with its ability to analyze large amounts of data in no time at all. In this way, AI tools are able to find the optimal times for appointments by automatically cross-checking the availability of all participants across their calendars.

AI can also be used in administration to compile important statistical information about the workforce. Employee data can be automatically processed to generate reports and analyses with all relevant HR key figures at the push of a button. This makes it significantly easier for management to make data-driven decisions and identify workforce trends. For example, by analyzing communication patterns or internal evaluations, AI can help build an early warning system for employee turnover.

Finally, AI can also relieve HR of the burden of direct communication with employees. AI-powered chatbots can be integrated into internal Employee Self-Service (ESS) platforms to answer simple employee FAQs around the clock. This also ensures that all employees receive the same consistent answers to their questions.

AI supports employee development

Every HR professional knows that the market for qualified talent is becoming increasingly competitive. That’s why it is becoming more important for HR to invest time and resources in employee development. This boosts motivation, raises productivity, strengthens employee loyalty, and reduces churn. AI tools also support HR in this crucial area for the future.

AI tools can be used to design personalized learning paths. By analyzing employees’ individual skills and development goals, AI creates a structured sequence of learning content. This content is specifically tailored to gradually enhance certain skills, knowledge areas, or competencies of each employee. This enables you to implement continuous, targeted professional development, which strengthens employee growth and plays a pivotal role in boosting retention.

Another key tool where modern HR benefits from AI is feedback analysis. Here, AI’s ability to process large volumes of data once again proves valuable. With the right AI tools, HR managers can easily analyze employee surveys, performance reviews, and other sources to identify trends and areas for improvement. This enables leaders to take targeted action aimed at improving employee development early on.

AI offers many opportunities

As we have demonstrated, using AI in HR opens up a wide range of possibilities. It can help to further automate routine tasks, support data-driven decision-making, and has great potential to improve employee experience.

However, decision-makers must not overlook a crucial point: integrating AI into HR requires careful planning and oversight. From a compliance perspective, this is especially important when it comes to ethical standards and data protection. In HR practice, AI should enhance – not replace – human interaction. By prioritising these factors, companies can fully harness the benefits of this transformative technology, building a modern HR department that drives future business success.

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[1] Wintergerst, R. (2024). Künstliche Intelligenz in Deutschland – Status quo und Ausblick. Bitkom e.V.

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