AI in SuccessFactors HR: Boosting HCM Efficiency

SAP harnesses the power of AI to help organizations ignite the potential within their workforce. AI now encompasses the entire SAP SuccessFactors Human Experience Management Suite, enhancing the employee experience and informing every decision, from talent acquisition and internal mobility to learning and performance management. More customers using SAP cloud solutions now have access to SAP Business AI technology across multiple scenarios and partner solutions, ensuring their relevance, reliability, and responsibility in a constantly evolving world.

Aaron Green, the Chief Marketing & Solutions Officer, of SAP SuccessFactors stated that the AI capabilities within SAP SuccessFactors solutions will enable organizations to put people and their experiences first. The collective power of AI capabilities will help unlock new possibilities for people and organizations by tapping into new levels of potential, performance, and operational efficiency.

Role of SuccessFactors in HR

Back in 2019, SAP identified that concepts around human capital management (HCM) needed to evolve. As a result, SAP came up with the concept of human experience management (HXM) with SuccessFactors, which focuses on prioritizing people in business. SAP SuccessFactors is a cloud-based HCM suite that helps businesses manage their workforce and provides supportive modules for HR processes. Though each module can work independently, they seamlessly integrate to create a holistic strategy for talent management. It is employed by organizations to effectively handle processes such as recruitment, onboarding, employee performance management, HR analytics, payroll processing, and learning and development activities.

Joule, generative and predictive AI in HR processes

Joule is SAP’s natural-language, generative AI copilot. Joule communicates with the employee in natural language, responding to questions and performing assigned tasks. It helps to get work done quicker and drive better business outcomes in a secure, compliant way. Generative AI is the most practical in the recruitment process. Its use cases help people, managers, and recruiters craft precise job descriptions and help employees find personalized learning recommendations to drive their career advancement and personal growth. Predictive AI is utilized for recommending career paths, creating job descriptions, and optimizing job offers, among other HR processes.

Joule AI in SAP SuccessFactors

SAP intends to integrate Joule throughout its cloud enterprise portfolio. They want to give SuccessFactors users a decisive edge with its new AI. The purpose is to deliver proactive and contextualized support from both SAP solutions as well as third-party sources. Joule AI supports companies in closing skills gaps and identifying the full potential of their employees. Its AI’s capabilities will integrate with the entire SAP SuccessFactors HXM suite to help employees in the process of recruitment, internal mobility, HR planning, employee performance management, and retention.

Key functions of SAP Joule AI

Co-pilot Function: The co-pilot function allows users to ask questions via a chat box or voice command. Just like ChatGPT, Joule AI comprehends natural language and can respond accordingly.

Recommendations Function: Joule AI offers its users solution-oriented recommendations. For example, in the LMS module, it automatically recommends learning content based on employees’ strengths and shortcomings.

How Generative AI Will Impact HR

By now we already know that Generative AI will play a transformational role in Human Resources but let’s look at its impact with real-world use cases.

Talent Intelligence for Recruiting

Talent Intelligence is a thing now. Companies can utilize LLM-based systems to identify hundreds of skills in their people, allowing companies to intelligently hire candidates, decide who is ready for promotion, drive people to new opportunities, and identify pay inequities.

HR self-service

GenAI offers more conversational workflows and personalized information. This type of delivery could increase adoption, especially as more employees prefer GenAI for its user-friendly approach to addressing their needs.

Employee Development and Growth

There are a lot of tools and platforms to help employees with their careers. With talent Intelligence platforms, we now have “career pathways” being generated by AI. These systems examine your skills and experience and give you all the choices you have for growth, based on the experience of others.

The potential of AI in HCM modules

In the field of human capital management, the potential of generative AI is immense. GenAI technologies, which can create content from various sources and quickly summarize multiple data sets, offer the HR discipline powerful capabilities. The technology becomes crucial for upskilling team members and unlocking value as the function extends its impact across the organization.

According to BCG’s “How Generative AI Will Transform HR”, generative AI has accomplished what no other technology trend has: accelerate HR’s engagement with artificial intelligence. Artificial intelligence will improve productivity for the following roles:

Recruitment by 25-50%
HR admin and shared services by 20-30%
Employee performance management (goals, coaching, evaluations) by 10-25%
Employee retention by 5-10%
Compensation and benefits management by 10-25%
And strategic HR planning by 10-25%

SAP SuccessFactors HXM is a Real Deal

After years of development, integration, and design, SuccessFactors now provides one of the most integrated, AI-powered, HCM platforms. The adoption of AI tools has been slowly gaining momentum in the human resources space. Even in the early days, it is becoming clear that the entire workforce will transform as the technology brings new capabilities. Progressing artificial intelligence is not only changing the way we work but also unlocking individual and collective potential.

Explore how you can get the most from your SAP implementation by adopting SuccessFactors and leveraging SAP BTP (Business Technology Platform). Get the most out of your employees while improving their experience with Rialtes’s end-to-end human experience management (HXM) services powered by SAP HCM.