Artificial Intelligence (AI) is transforming people management, offering solutions that go beyond automation to provide strategic decision-making. The recently launched AI for HR report by Distrito reveals that approximately 45% of respondents point to the HR area as the second main user of AI in their companies, second only to the IT area. The research also indicates that currently 33.74% of companies are already in the process of implementing AI solutions in their Human Resources departments, signaling a concrete and immediate progress towards the use of this technology.
The adoption of this technology has helped HR in various aspects, from reducing hiring time to automating administrative processes, allowing professionals to focus on more strategic activities. However, its use has also crossed new horizons: predicting employee behaviors, which directly impacts companies’ budget decisions.
With a database and an integrated platform, AI in the sector is already being used to analyze information transparently and explain the factors that influence decisions related to talent management and organizational climate. An example of this innovation is Factorial One, a new product from the unicorn startup providing solutions for HR and Payroll process management and centralization, Factorial.
The Factorial One centralizes on a single page all the employee’s history, whether administrative and/or performance. With the support of artificial intelligence, which permeates different modules of the management platform, in Factorial One, the HR professional will take seconds to predict behaviors, such as a possible dismissal or burnout; identify probabilities of promotions or budgetary retention and much more. All of this because Factorial’s platform has adopted AI in its processes and provides HR with insights, reports, graphs, and ready-made analytics, enabling the company to make fast, informed, and assertive decisions.
“The application of AI in HR goes far beyond task automation; it is about providing managers with actionable insights that translate complex data into strategic decisions,” says Renan Conde, CEO Brazil of Factorial. He points out that, by identifying the most relevant factors behind challenges such as turnover or engagement, AI not only optimizes processes but also ensures greater transparency and foundation in decisions.
Platforms like Factorial’s use artificial intelligence to predict trends and offer practical recommendations, from task redistribution and career planning to the development of 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 to have a more consistent budget planning and a clearer cost predictability, consolidating HR as an essential pillar for the sustainability and competitiveness of the business,” adds the CEO.
The prediction is that this type of technology will be increasingly used in the future. According to data from the Gartner survey, named Gartner Hype Cycle for HR Technology 2024, by 2025, 60% of corporate organizations will adopt a responsible AI framework for their HR technology and gain greater employee experience and trust in the organization.
Renan explains that by incorporating skills assessment into the performance process, Factorial’s tool identifies skills gaps and recommends specific training for each employee, ensuring development focused on the area’s goal. The ability to track assessment progress in real-time speeds up feedback cycles, promoting a continuous improvement environment. Another advantage is the functionality to measure the effectiveness and satisfaction with the courses offered, issuing certificates with ISO standards, which brings greater security and credibility to training initiatives.
For Conde, “we are moving towards a time when AI will be as integrated into HR as email is today: essential and natural.” He explains that at Factorial they are preparing for this future with the core of data uniqueness and process automation of the unicorn startup platform. “We are building a solid foundation for our AI to evolve from a technical resource to an active partner in the daily lives of companies. Our goal is simple: to use AI to make work in HR more humane and focused on what really matters – helping people grow, teams develop, and companies achieve their goals sustainably. Technologies like AI agents are enablers of human potential, and we are committed to making them tools increasingly aligned with the real and ethical challenges of organizations”, concludes the CEO.
