People analytics—the data-driven approach for managing people at work—is AI and predictive analytics for HR. A recent study estimated that over 70% of HR departments are using people analytics. Since these tools are incredibly effective at analyzing, and even predicting, human behavior, it was inevitable that HR departments would use analytics as well.

Hiring teams leverage people analytics since it helps employers find the best talent and evaluates their recruiting methods. It also identifies personality types and characteristics that predict success-over-time for specific positions. Some companies use AI-powered facial scanning tools for remote interviews. These tools can predict a candidate's fit for a position through analyzing speech patterns, expressions, and eye movements. Some employers use an AI-powered gamification tool to pick and evaluate employees. One company used gamification for selecting call-center employees. They gathered data about successful employees—ones that not only succeeded at the job but also stayed. Using the data, this company developed a "game" that would test applicants and determine if they had the targeted characteristics. By using this new tool alone, this employer improved retention by 20% over four years.

HR departments are also using analytics for performance management, such as conducting employee evaluations; developing pay for performance metrics; ensuring employees are on the right career track; developing appropriate KPIs; and improving the quality of life for their employees. They are also using analytics for employee training by identifying KPIs through analysis of training effectiveness, increasing employee feedback, and improving employee engagement by using gamification concepts.