Artificial intelligence (AI) is transforming people management, offering solutions that go beyond automation to provide strategic decision-making. The recently launched report IA for HR, by Distrito, reveals that approximately 45% of respondents cite HR as the second main user of AI in their companies, second only to IT. The survey also indicates that currently 33.74% of companies are already in the process of implementing AI solutions in their Human Resources departments, demonstrating concrete and immediate progress toward adopting this technology.
The adoption of this technology has helped HR in various ways, from reducing hiring time to automating administrative processes, allowing professionals to focus on more strategic activities. However, its use has also expanded into new horizons: predicting employee behavior, which directly impacts companies’ budgetary decisions.
With a database and an integrated platform, AI in the sector is already being used to analyze information transparently and explain the factors influencing decisions related to talent management and organizational climate. An example of this innovation is Factorial One, a new product by the unicorn startup Factorial, which provides HR and payroll management solutions.
Factorial One centralizes an employee’s entire history, whether administrative and/or performance-related, on a single page. With the support of artificial intelligence, which permeates different modules of the management platform, in Factorial One, the HR professional can take seconds to predict behaviors, such as possible resignations or burnout; identify promotion probabilities or budgetary retention, and much more. All this is possible because Factorial’s platform has integrated AI into its processes and provides HR with ready-made insights, reports, charts, and analyses, enabling companies to make fast, data-driven, and thus assertive decisions.
“The application of AI in HR goes far beyond task automation; it’s about providing managers with actionable insights that translate complex data into strategic decisions,” says Renan Conde, Factorial’s CEO in Brazil. He highlights that by identifying the most relevant factors behind challenges like turnover or engagement, AI not only optimizes processes but also ensures greater transparency and justification in decision-making.
Platforms like Factorial’s use artificial intelligence to predict trends and offer practical recommendations, from task redistribution and career planning to developing clearer communication policies. “These actions have a direct impact on the business: they reduce costs associated with high turnover, increase productivity, and strengthen team engagement, resulting in better financial performance. This helps with more consistent budget planning and clearer cost predictability, consolidating HR as a crucial pillar for business sustainability and competitiveness,” adds the CEO.
The forecast is that this type of technology will be increasingly adopted in the future. According to data from Gartner’s survey, titled Gartner Hype Cycle for HR Technology 2024, by 2025, 60% of corporate organizations will adopt a responsible AI framework for their HR technology, gaining greater employee trust and experience in the organization.
Renan explains that by incorporating skills assessments into the performance process, Factorial’s tool identifies skill gaps and recommends specific training for each employee, ensuring development aligned with departmental goals. The ability to track evaluation progress in real-time accelerates feedback cycles, fostering a culture of continuous improvement. Another key feature is measuring the effectiveness and satisfaction of provided courses, issuing ISO-standard certificates, which adds credibility and security to training initiatives.
According to Conde, “We are moving toward a time when AI will be as integral to HR as email is today: an indispensable and natural tool.” He explains that at Factorial, they are preparing for this future with the core principles of data uniqueness and process automation in the unicorn startup’s platform. “We are building a solid foundation for our AI to evolve from a technical resource to an active partner in the daily operations of companies. Our goal is simple: to use AI to make HR work more human and focused on what truly matters—helping people grow, teams develop, and companies achieve their goals sustainably. Technologies like AI agents enhance human potential, and we are committed to making them increasingly aligned with the real and ethical challenges organizations face,” concludes the CEO.
