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The successful implementation of artificial intelligence within an HR technology strategy depends on a number of factors, but one basic step can have a big impact: vendor selection.
Vendor selection can't happen in a vacuum, however. Before choosing a particular platform or tool set, HR leaders must understand how the tool will integrate with their tech stack as well as with their organizational culture. They must understand — in detail — the business challenges they are looking to solve with the technology and the kind of solution that will best meet those needs.
HR leaders should also be ready to accurately describe the specific tasks the AI technology will take on and their greater vision when meeting with solution providers. This clarity will help them work through the procurement and implementation process.
Ethics, Integration, Data Sources: All Considerations in AI Tool Selection
Some 72% of HR professionals use AI at least weekly, according to HireVue research, up from 58% in 2024. Trust in AI has also grown, from 37% to 51%. AI is helping HR execute on everything from talent acquisition to employee engagement. By augmenting human skills in some areas, and replacing people with automation in others, the technology helps hire more quickly, make more informed decisions and, in general, keep the HR function operating smoothly.
Technology can't achieve these goals however if a company implements AI just for the sake of it. AI isn’t a product so much as a tool set. Yet companies treat AI as they would any other new software. The thinking goes is all they need to do is select a tool, implement it and deploy it.
Alas, it’s not that simple.
Selecting an AI vendor is as much about ethics and approach as it is about upfront costs, subscription fees and hardware requirements.
How well your vendor aligns with your approach to HR matters. Choosing the wrong vendor can cause a number of headaches besides financial and operational problems. Data sources and quality, accuracy, bias and compliance are other important considerations. So is integration: If your AI solution doesn’t play well with others, companies can be left with a clunky tech stack and assorted inefficiencies.
5 Essential Questions for Vetting HR AI Vendors
HR leaders must look under the AI platform's hood to identify the right technology vendor.
- First, understand how the vendor’s solution works. What data have its models been trained on, for example. How do they detect bias? The best vendors can explain their AI’s recommendations and actions, rather than ask you to trust a “black box.”
- Check on the platform’s compliance with applicable laws and regulations. For example, is it GDPR-compliant, or does it address New York City’s Law 144? If the vendor has documented and/or audited its fairness, privacy and accuracy, ask to see a full report. If a vendor hasn’t done this, it’s fair to ask why.
- Make sure the platform can be customized for your needs, including its ability to address your company’s values, DEI principles and definitions of success. Be wary of vendors who resist the idea of customization or can’t answer questions about how they would approach your requirements.
- Integration is a key. Your platform will undoubtedly need to connect with other business critical systems, whether they’re applicant tracking systems, learning management systems or payroll solutions. Make sure a vendor’s system smoothly communicates with other systems, shares data accurately and quickly, and protects privacy and data security during its operation.
- Check references. Talk with the vendor’s existing customers about the system’s performance and results. Try to get a sense of how the platform has helped address challenges like the ones you anticipate. This is, in essence, a reality check: Does the platform you’re considering live up to the vendor’s pitch?
Despite all you hear about AI allowing you to do more with less, remember the purpose of HR technology is to provide users with better tools designed with the intricacies of HR in mind, including flexibility, usability, security and compliance.
Notice how this approach is all about results — specifically, making sure your AI platform addresses your needs. Don’t allow buzzwords to get in your way. Rushing HR technology procurement without due diligence is dangerous, and engaging a vendor that doesn’t fit can impede the very advantages you want your platform to provide.
Editor's Note: Read more takes on AI in HR:
- If We Want AI to Help HR, HR Has to Join the Conversation — Engineers are designing AI systems to address problems that are rooted in the very systems HR understands best.
- First Time Managers Need Help. Is AI the Answer? — The CCL reports 60% of new managers never receive training. Unsurprisingly, generative AI solutions are popping up to solve the problem. Are they the answer?
- Rethink Your HR Strategy to Include AI Agents — As AI agents make their way into our workforce, HR is called to adapt its workforce strategy.
