SNEF survey: Nearly half of firms using AI in HR deploy it for recruitment; most retain human oversight

Artificial intelligence (AI) is gradually making its way into corporate human resources departments. A survey by the Singapore National Employers Federation (SNEF) found that nearly half of companies already using AI for HR tasks deploy it to recruit and select employees. Most employers, however, still require human confirmation or approval of AI-automated HR processes.

The survey, conducted from June to July this year, gathered responses from 1,000 companies, ranging from micro-enterprises to large firms with more than 1,000 employees.

It found that 74% of respondents had adopted AI for at least one HR task. The adoption rate was 81% among large companies with more than 200 employees, compared with 65% among small and medium-sized enterprises. Another 16% of employers were piloting or exploring the use of AI in HR.

Among companies already using AI for HR tasks, 49% used it for recruitment and employee selection, 45% for performance appraisals, training and internal transfers, and 39% for workforce planning.

By contrast, only 15% used AI for employee relations and exit management, such as analysing staff turnover, planning departure arrangements or assisting with disciplinary investigations. Overall, employers were more inclined to use AI for work involving large volumes of repetitive tasks, supporting rather than replacing HR professionals’ judgement.

An analysis of nearly 3,000 specific applications of AI in HR found that 85% required human review before AI could automatically carry out the work. The remaining 15%, which did not require prior human approval, mainly involved repetitive administrative tasks such as automated CV analysis and preliminary screening of job applicants’ skills. Only about 13 applications had no human involvement or mechanism for overriding AI decisions.

Some employers, however, worry that over-reliance on AI could weaken employees’ capabilities. Among companies already using AI for HR, 39% were concerned that HR professionals’ expertise could deteriorate over time; 36% were unsure when to trust AI rather than rely on professional judgement; and 35% were concerned about who would be accountable for AI errors.

Singapore National Employers Federation (SNEF) chief executive Hao Shuo understands employers’ concerns, but does not believe that using AI appropriately will erode HR professionals’ expertise. Instead, AI can ease their burden of handling routine tasks. He said: “I think HR will have more time, more capacity for higher value-add work within the company, including strategic workforce planning.”

With the Workplace Fairness Legislation, which prohibits discriminatory employment practices, expected to take effect at the end of 2027, companies’ responsible use of AI has also come under scrutiny. The survey found that 42% of employers wanted greater clarity on their legal obligations when using AI and their liability if errors occurred. An equal proportion wanted training in the responsible use of AI.

Addressing concerns that AI could cause recruitment discrimination by automatically screening out applicants with certain characteristics without employers’ knowledge, Hao stressed that employers understood they remained responsible for ensuring a fair and impartial recruitment process, even when using AI, and would be accountable for any breaches of the law.

He said: “So their own HR professionals within the firms, they will be the ultimate decision maker in the process, and will provide another layer of oversight.”