Artificial Intelligence in HR: Companies welcome new era, employees prefer personal approach

Already more than half (54%) of Czech companies are using or intend to deploy artificial intelligence (AI) technologies this year to streamline human resources (HR) activities. AI is becoming a key tool in recruitment processes, as well as in data analysis, communication with employees or planning their further development and training. This is according to a survey conducted by Grafton Recruitment among HR professionals from 328 medium and large companies.

However, the interest of HR managers in this technology could be influenced in the future by the European law on AI adopted this year, which takes into account the level of risk of different applications. Employees are also more reticent about AI. Although they generally view the technology rather positively, they find its use in communicating about future employment impersonal.

The role of AI in HR

According to a survey by Grafton Recruitment, introducing AI and automation into HR processes is one of the key challenges for companies this year.

“The opportunities for using this technology in HR are really broad. For example, it is now significantly applied in recruitment, where it is very well used to create texts and images for HR advertising. It is also an excellent tool for managing the direction and content of employee development, where it helps to analyse the needs and preferences of individual employees and design relevant training programmes. Especially in large companies, it is also used in communication with employees,”

says Jitka Kouba, Marketing Director at Grafton Recruitment.

Recruitment is also aided by chatbots and voicebots, which quickly and efficiently answer common questions from job seekers, saving recruiters time.

“Up to 47% of conversations with chatbots take place outside of standard working hours, so candidates do not have to wait for office hours and can get answers to their questions at almost any time. In addition, our chatbot can process 54,000 communications in just 6 minutes. This would take recruiters 675 days manually,”

explains Jitka Kouba, one of the many AI tools, adding that AI can also help in the actual selection of the most suitable candidates through prescreening.

While recruiters clearly recognise the positive benefits of AI, the general public is approaching it with slight apprehension. According to the results of a survey in which Grafton Recruitment asked job seekers about their preferences, people generally associate AI with positive emotions, with only 5% of respondents involved in the survey having an explicitly negative perception of it. However, they prefer human contact when communicating about future employment, and find AI inappropriate and impersonal in this case. So, even though the aforementioned chatbots and voicebots are proven to save a lot of time, we still need to think about the human dimension and empathy.

The EU and the AI Act may threaten the use of technology in HR

The use of artificial intelligence in human resources may be largely affected by the AI law adopted this year, which will apply to all EU countries. Through it, the EU is emphasising a cautious approach to AI, particularly where the technology may affect vulnerable populations, identify individuals using biometrics, or impact their health, wealth and careers. The law, which comes into full force in 2026, assesses the risks of different AI applications and distinguishes between prohibited AI practices, high-risk AI systems, limited-risk AI systems and minimal-risk AI systems. It is applications in HR, recruitment and workforce management that are considered high risk under the Act’s definitions.

“It is therefore crucial to use AI only in accordance with ethical standards, thus minimising any potential risks. Moreover, it is still essential to maintain the human dimension in HR, which is confirmed by the results of our survey,”

says Jitka Kouba.

Artificial intelligence in good hands helps growth

Jaromír Staroba, president of the ABSL industry organisation, confirms this.

“The IT and business services industry is proof that artificial intelligence, if in the right hands, can bring many benefits in many industries and activities. For example, centres that use AI are growing twice as fast as the industry average. For its development to go in the safe and right direction, it is important for companies to establish AI governance boards, monitor global regulatory developments, and lead innovation teams according to ethical guidelines,”

says Jaromir Staroba, adding that companies should raise awareness of the changing regulatory environment among employees as well as their partners and clients. When selecting technology solutions, then, AI impacts should be carefully considered and high-risk solutions such as black-box AI tools that automate HR processes with minimal documentation and transparency should be avoided.

ABSL (Association of Business Service Leaders in the Czech Republic) is an association of companies operating in the shared business services sector, which represents a strong generator of employment in the Czech Republic. ABSL was established in 2013 to foster companies in the business services sector, share best practices and help to develop the activities of its members and other entities operating in this segment. At the same time, ABSL provides support to foreign investors who want to establish their business services centres in the Czech Republic. Currently, there are nearly 400 centres in the Czech Republic employing 160,000 people. For more information, please visit www.absl.cz.