How HR Leaders Can Use AI to Improve Their HCM Efforts

Artificial intelligence (AI) has become one of the most talked-about topics in business today, and HR is no exception. Across the boardrooms of Australia and beyond, HR leaders are being asked what AI means for their workforce. How will it change the skills employees need? Which jobs will be affected, and how soon?While much of the conversation around AI has focused on what it means for the workforce, there’s an even bigger opportunity that often gets overlooked: how AI can empower HR leaders themselves.

01 Jul 2025

6 min

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If you’re only thinking about AI in terms of preparing your people, you’re missing the more immediate opportunity: to use AI to make your own job easier, faster, and more effective.

Ever felt like you’re spending more time managing HR systems than focusing on your people? From endless spreadsheets to disconnected processes, many HR leaders are stuck in the weeds constantly fixing problems instead of driving progress.

But here’s the good news: artificial intelligence (AI) is no longer just a futuristic promise. It’s here - and it’s transforming how HR leaders work, starting today.

AI for the HR Professional: The Overlooked Opportunity

Most discussions about AI in HR revolve around preparing people for change:

  • “What skills do our employees need to thrive in an AI-enhanced workplace?”

  • “How do we prepare our teams for automation?”

  • “How will AI reshape job design?”

These are critical questions—but here’s one that’s often missing: “How can AI make HR’s job easier, faster, and more effective—right now?”

The truth is, AI is already embedded in many leading Human Capital Management (HCM) systems like Dayforce. But too often, HR leaders aren’t sure how to unlock its full potential.

Real-World AI Use Cases in HR Today

1. Self-Service That Actually Works

One of the clearest early wins for AI is its ability to supercharge self-service in HCM systems. Modern HCM platforms now feature AI-powered virtual assistants that put answers at employees’ fingertips—no more sifting through menus or policy documents.

Imagine:
“How much annual leave do I have? What happens if I take two weeks off in September, and can I take some negative leave?”

AI can instantly pull data, cross-check policies, and deliver a tailored answer—freeing your HR team from routine queries. It’s like having an HR team member available 24/7 to answer the most common queries, without bogging down your actual staff.

2. AI-Driven Insights for Better Decisions

Disconnected systems leave HR leaders guessing. AI-enhanced platforms integrate HR, pay, time, talent, and helps HR teams and line managers make better, faster decisions using predictive analytics. Instead of manually sifting through spreadsheets or reports, AI scans vast amounts of data and highlight emerging trends.

  • Early turnover 'flight risks'

  • Engagement hotspots

  • Emerging compliance trends

This shifts HR from reactive firefighting to proactive, strategic leadership.

3. Faster, Smarter Recruitment

AI can dramatically improve the speed and quality of recruitment by automating tedious steps and surfacing stronger candidates earlier in the process.

Modern HCM systems use AI to:

  • Screen resumes based on role-specific criteria

  • Detect unconscious bias in job descriptions or screening logic

  • Highlight top matches using predictive models trained on successful hires

  • Recommend interview questions tailored to the candidate’s background

Accelerated shortlisting, ensures more consistent evaluation, and helps HR spend less time on admin and more time building relationships with top talent.

4. Automation that Frees Up HR for What Matters

AI agents can take repetitive tasks off your team’s plate—automating approvals, running scenarios, and freeing up time for HR to focus on culture, strategy, and people.

AI Won’t Replace HR. It Makes It Better

A lot of HR professional may be worried "will HR take my job?". But the reality is quite different.

AI doesn’t replace judgment, empathy, or leadership. It enhances operational efficiency, freeing HR to do more of the work that matters. With AI in your toolkit, HR Gains:

  • Less admin - more time for strategic priorities

  • More impact - with data backed insights to influence business decisions

  • Faster onboarding and consistent compliance

  • Real-time automatino embedded into daily workflows

By shifting the HR mindset from “AI is coming for our jobs” to “AI can help me do my job better,” leaders unlock its full potential.

Keep an eye out for our next blog on the impacts of bad HR data to yoru AI ambitions!

Responsible AI: Trust, Transparency, and Control

In a world where trust is everything, AI needs to be responsible by design:

✅ Transparent and understandable—so your team knows how AI is making decisions

✅ Secure and compliant—with built-in safeguards and controls

✅ AI on your terms—giving you control to adjust or restrict features as needed

Choosing the Right AI-Enabled HCM System

If you’re a HR leader and you’re in the market for a new HCM system, or looking to get more from your current platform using AI, here are some practical features to look for when evaluating vendors:

  1. Natural language search and AI assistants: Modern tools should let users interact with the system conversationally, not just through dropdown menus and report builders.

  2. Predictive analytics: Look for features like attrition modeling, sentiment analysis, or workforce forecasting.

  3. Embeded AI: AI should be woven into your daily workflows—not bolted on as an afterthought.

  4. Continuous Learning: Look for AI that evolves with your business, learning and adapting over time.

Getting Started: Small Steps, Big Wins

It's easy to overthink AI adoption. If you have the right platform already, you don't need a moonshot project to get started, choose a simple use case and learn to walk with your AI before you run!

  • Identify your most common HR queries and manual processses

  • Ask how this could be simplified, automated, or informed by better data

  • Partner with your HCM expert, like Renofy - to unlock AI's potential

And if you’re implementing a new system, make AI capabilities part of your selection criteria, not an afterthought.

Final Thought: AI is here. Make it Work for You

AI isn't just about the future of work—it’s about the future of HR. It’s embedded in the systems you use (or could be using) and it’s ready to help you lead with confidence.

At Renofy, we help HR leaders unlock the full power of AI-enabled HCM systems, aligning technology like Dayforce with your business goals to drive real, sustainable change.

It's not about replacing HR - It's about making AI work for you.

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