Conversational AI in HR – Benefits and Implementation Process

Updated on Feb 6th, 2024

Conversational AI in HR - Benefits and Implementation Process

People from the recruitment team always know the pain of creating multiple sheets and spending countless hours finding the right candidate. But what if they get virtual assistance from a dedicated enterprise solution? Well, if that were told a few years ago, it would surely be a perfect movie script. However, we can achieve that today via conversational AI in HR!

Today, conversational bots have made HR management a piece of the cake. Whether we talk about sorting hundreds of profiles based on their skills or helping the users proceed with the hiring process, conversational bots have made HR management a piece of cake. Maybe that’s why most enterprises today are leveraging conversational AI and chatbot development services for their brand.  

In fact, CNBC predicts that by 2023, 75%-90% of HR inquiries will be handled by conversational AI bots. Cognizant, too, indicated that the market size for conversational AI bots will surpass USD$1.3 billion by 2025. These stats clearly show the impact of AI in HR. 

But what exactly is conversational AI, and how is AI in HR becoming a hot trend for enterprises? Moreover, how can you implement conversational AI platforms in your business? Let’s uncover answers to all such questions in our blog below!

  • Conversational AI in HR is becoming a hot trend for enterprises today. Gartner predicts 75% of HR conversations will happen via smart conversational AI chatbots by 2023!
  • There are many benefits of implementing conversational AI in HR, including innovative recruitment, engaging employee onboarding, smart data analytics, etc.
  • You must understand your business goals and partner with an experienced software engineering studio to maximize your success chances.
  • Always remember to begin your conversational AI chatbot development with an MVP, and do not forget to test your product before launching it in the market.

What are Conversational AI Platforms?

Conversational AI platforms are smart applications designed to simplify users’ tasks. Unlike rule-based chatbots, conversational platforms use modern ML algorithms and NLP services to understand the true intent of the user’s message. 

Conversational AI chatbots can analyze the text or voice of the user to analyze the true intent and offer them responses with striking human-like accuracy! You can easily deploy conversational AI chatbots in HR to streamline employee onboarding, hiring, resume sorting, data management, and report generation tasks.

What are the Benefits of Conversational AI in HR? 

HR has always been the most important department for any enterprise. Whether hiring new talent or marketing the brand on a global platform, human resources always play a vital role. In fact, LinkedIn Talent Solutions states that 59% of enterprises today seek ways to enhance their employer brand.

But, there are some major challenges faced by the HR department globally. For instance, many enterprises work on different systems for different purposes. In such a case, getting centralized data can be a big problem. Furthermore, real-time assistance to the new joiners and HR managers is also not possible with HR solutions.

That’s where custom conversational AI chatbots come into play! Conversational AI in HR has shown tremendous effects on resolving these and many other challenges for the HR department. Let’s uncover a few of those benefits in our article!

Innovative Recruitment Process

Recruiting resumes and finding the most desirable candidate amongst hundreds is major problem recruiters face. However, that’s not the case with organizations using conversational AI in HR.

The smart conversational AI chatbots can easily screen hundreds of applications to find the best candidates for your job post. Moreover, they can even answer the basic queries raised by the interviewees regarding job descriptions, interviews, etc.  

Such a quick and real-time response to your new joiners leads to an increase in brand value. The new employees get answers to every question with human-like accuracy and without any waiting time. Furthermore, custom conversational chatbots also reduce the burns of your HR managers and recruiters by automating their sorting and data management tasks.

Read More: Why Are Modern Enterprises Implementing AI in HR?

Streamlined Payroll Tasks

Another advantage of implementing conversational AI in HR is simplified payroll and employee benefit tasks. Getting proper attendance of employees from each department, tracking their working hours, and calculating various taxes consume a lot of time for HR managers. 

Moreover, the chances of human errors further make those tasks time-consuming. But not anymore! Many leading enterprises utilize AI in human resources to automate tedious payroll management tasks.  

The smart conversational bots reduce your HR’s workload by gathering data from different departments and calculating their final wages. Not just that, conversational AI in HR can also be used to inform your employees about various benefits available during certain times.  

Easy Compliance Operations

HR laws and compliance are one of the most critical aspects of the human resource department. They must ensure that all the laws and regulations are followed by the company right from the start. However, it takes only an experienced and well-informed HR to learn about all the rules and compliances about employees and the company.

But conversational AI chatbots can easily automate all those tasks for you. Yes, you heard it right! There are multiple organizations today leveraging the trend of AI in HR to simplify and automate their compliance management operations.  

For instance, smart conversational chatbots can be trained to send alerts whenever the state government makes new regulations. The custom conversational AI chatbots can also send alerts to your employees about deadlines and high-priority tasks.  

Personalized notifications, informing employees about new leave policies, and streamlining their legal paperwork are other operations automated by custom conversational AI chatbots.  

Better Employee Onboarding

Imagine virtual assistance helping your new joiners with office tours, document signing, and other onboarding activities. You would be relieved, aren’t you? Well, that’s what conversational AI platforms do! 

A custom conversational AI chatbot easily integrates into your existing HR software or new employee onboarding website to enhance your onboarding process. Whether answering your new joiners’ questions or guiding them toward their meetings and planning schedule, everything can be managed with a custom conversational AI chatbot.  

Useful Business Analytics

Data is the most critical asset for any organization. Everything depends on data, whether you need to verify overall business productivity and KPIs or make informed decisions. However, legacy systems cannot generate key business analytics from raw data. 

That’s why the leading organizations today leverage AI in HR to make use of various data analytics services. The smart conversational AI chatbot gathers data from multiple touchpoints and combines it to generate meaningful business insights. For instance, you can easily get data on sales, employee concerns, ongoing tasks, etc., with just a click on your system.  

Not just that, conversational AI in HR can also refine your information with time. That means the machine learning algorithms used in conversational ai software solutions can learn from your initial interactions and customize your desired data in a suitable format.  


How Can You Develop a Conversational AI Chatbot for Your Enterprise?

Now that you know the excellent benefits of AI in HR, you might think of implementing conversational AI services in your business. However, it is not that easy! You must fully understand your business goals and ongoing processes to see which areas need improvement. Once that is done, you need to select a suitable use case of AI in HR that can help you achieve desirable outcomes.

Furthermore, you must hire a reliable development team with decade-long AI software development experience. Testing, UI/UX, MVP development, and deployment are other tasks associated with conversational chatbot development services.  

Now, those tasks are a bit challenging, even for large enterprises. Conducting market and competitor analysis and finding the right talent for implementing conversational AI services is something not everyone can do.  

That’s where Matellio comes in! 

With over a decade of experience delivering AI development services to clients across multiple domains, we can help you implement conversational AI in HR. Here’s how you can begin your conversational AI chatbot development with us. 

Fill Out Our Consultation Form

The foremost step to implementing conversational AI platforms into your business is to fill out our consultation form. You need to specify your name, contact details, a valid email address, and a brief about your requirements in our form.  

Discuss Your Business Requirements with Our Experts

Expert consultation is essential when implementing an AI solution into your business, and a conversation AI chatbot is no exception. That’s why we offer our clients a free 30-min consultation service to help them uncover the most notable trends and technologies for their custom enterprise solutions.  

You can easily discuss your vital business requirements with our experts to know the best use case of conversational AI in HR for your business. Moreover, you can even explore the latest market trends that can upscale your chatbot development. Our experts have delivered many successful next-gen solutions to various companies and can easily help you implement conversational AI in HR. 

Hire Your Conversational AI Chatbot Development Team

Once you have discovered a perfect use case of conversational AI for human resources, you can hire your development team. As an expert software engineering studio, Matellio offers flexible hiring models to help our clients hire the perfect talent per their project requirements. 

For instance, if you have a clear idea of your custom AI solution and only require a team to work on it, then our Turnkey model would be best suited for you. However, if you have a long-term project with dynamic requirements, then Time & Material model would suit you. In short, we have various models to help you hire the best resources at optimal cost.  

Read More: Enterprise AI: Driving the Business in Future

Get Multiple Prototypes and an MVP

Sometimes, a company cannot decide which features should be kept in their custom solution. That particular problem is solved via prototype design and MVP development. Prototypes are static designs of how your product looks with certain functionalities.  

MVP is a minimum viable product and can be considered a functional prototype. It is perfect for checking your enterprise solution’s interface, user experience, and navigation. With an MVP, you can know where a particular feature will lead to your users or how easy it is to navigate your conversational AI chatbot.  

Furthermore, MVP development also reduces the risk of wrong/unexpected product development, as you verify everything in the initial stage. 

Hence, we offer MVP development services to help you enhance your custom AI solution’s overall working or UX. You can specify your requirements and ideas, and our project manager, in collaboration with designers and UI/UX experts, will create a custom MVP for your project. 

You can alter the design or features according to your expectations and proceed to the final product development and testing! 

Develop, Test, and Deploy Your Conversational AI Platform

Finally, we develop your custom conversational chatbot tailored to your business needs. Our experts follow the agile development methodology that offers real-time updates about your product after each development stage.  

That means you can easily monitor and introduce new changes to your conversational chatbot without returning to the previous step. All that reduces the testing time and optimizes your overall development cost. Besides that, the quality of the product is also maintained since everything is monitored and verified by you.  

Besides development, we also offer testing services to ensure that your conversational AI chatbot is error-free. Testing is vital as it detects even the minutest of the bugs left unidentified during the development process. 

Hence, you can leverage either manual or automated testing services to detect bugs and free your product from glitches. Finally, our developers deploy your custom AI solution over your choice of platform.


Other Factors to Keep in Mind While Implementing Conversational AI Chatbot

So, you have explored everything about conversational AI in HR and are ready to implement a custom conversational AI chatbot in HR. But have you uncovered the vital factors that can impact your chatbot development?  

Well, creating a custom enterprise solution requires complex analysis and calculations, and conversational AI chatbot development is no exception! Besides UI/UX, MVP development, and testing, there are many other factors that you must address for a successful implementation. Let’s have a look at them! 

Voice Recognition

Automatic speech recognition, or ASR, has become one of the prominent AI development services for enterprises, and HR is no exception. The ability to convert text-to-speech and speech-to-text is termed ASR. But how does it relates to your conversational AI chatbot development? 

Well, today’s era is about getting answers from smart devices via voice commands. In fact, other smart assistants like Alexa and Siri are already using ASR services to enhance their user experience. Hence, you can leverage this trend to offer a highly engaging experience to your employees and other users.  

The ASR models can be implemented in your custom conversational chatbots to offer human-like conversational interaction. Moreover, smart machine learning algorithms can further learn about your processes and raw data to provide business-specific answers to queries.  

Image Analysis

Image analysis is a beneficial feature for your custom conversational AI chatbot, similar to voice recognition. Many a time, it is seen that employees cannot find the perfect words to describe their problem. It may also be possible that the HR managers wanted to prepare a list of the contact details for the resumes. 

All those tasks can easily be streamlined using the image recognition functionality of your HR chatbot. The suitable tools help you extract the right information from your images or answer the basic queries of the employees.  

Knowledge Base

We are sure that you want your custom conversational AI chatbot to answer even the long-tailed questions of your employees. But where can the chatbot learn about these questions? A knowledge base is an answer! 

A knowledge base is the module wherein all your communications, questions, and documents are stored that can be used by the chatbot to frame an effective answer. In other words, the communications between your employees and the documents shared by them are stored in the knowledge base. The chatbot then collects, stores, and analyzes these communications to understand the users’ intent and offer them the best answer in the most human-striking manner.   

Hence, prepare a knowledge management strategy before implementing conversational AI in HR.  

Performance Monitoring

Finally, we have performance monitoring as our final factor for successful chatbot development. We all know that chatbots are based on machine learning algorithms. They can only learn from the data we provide them during the initial training. 

Hence, you must provide the relevant data and metrics to make your conversational AI chatbot perfect for your business. Once you provide the relevant data, you must continuously monitor its performance and take the appropriate measures to fine-tune the results. 

For instance, check whether the chatbot is giving appropriate answers to your users or if the users are directed toward the human assistants at the correct time. Moreover, you must also ensure that your custom conversational aI chatbot should understand different variants of the same questions for better accuracy. 

In short, offer your chatbot a wide array of data and monitor its performance for desirable outcomes! 


Conversational AI in HR has become a hot trend in the market due to its exemplary benefits to enterprises. Whether we talk about personalized assistance, automated operations, or better business analytics in real-time, conversational AI chatbots are redefining many tasks for the human resource industry.  

That’s why the market for conversational AI chatbots is predicted to surpass $18.4 billion by 2026! Hence, implementing a custom conversational AI chatbot is essential if you want to upscale your branding and HR operations while engaging your employees, then implementing a custom conversational AI chatbot is essential. Besides automating your onboarding and data management tasks, you can also ensure a compliant and smart business environment for your present and future employees. Not to mention, attracting the right talent to your company is also a perk of adopting the trend of conversational AI in HR! 

So, hurry up, and begin your automation journey today! Fill out our form and begin your custom chatbot development with a free 30-minute expert consultation. Also, get a free quote based on your business requirements by connecting with our experts.



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