AI is reshaping HR — recruiting, onboarding, performance management, and employee engagement. Here’s every term you need to know.

A

AI (Artificial Intelligence) — Software that performs tasks requiring human-like thinking. In HR: writing job descriptions, screening resumes, drafting policies, analyzing engagement data, and generating performance reviews.

AI Bias — When AI systems produce unfair outcomes for certain groups. In hiring, AI trained on historical data may perpetuate existing biases (favoring certain schools, names, or backgrounds). Regular auditing is essential.

Applicant Tracking System (ATS) — Software that manages job applications. Modern ATS platforms (Greenhouse, Lever, Workday) increasingly include AI features for resume screening and candidate ranking.

Automated Screening — AI reviewing resumes and applications to identify qualified candidates. Saves time on high-volume roles but must be monitored for bias. See also: NYC Local Law 144.

C

Chatbot (HR) — AI that answers employee questions automatically. HR chatbots handle FAQs about benefits, PTO, policies, and payroll — reducing repetitive questions to the HR team.

ChatGPT — The most popular AI assistant. Useful for drafting job descriptions, policies, employee communications, and performance reviews. Free or $20/month.

Compliance (AI-specific) — Laws governing AI use in employment. NYC Local Law 144 requires bias audits for AI hiring tools. The EU AI Act classifies employment AI as “high-risk.” Illinois AIPA requires consent for AI video interview analysis.

D

DEI (AI-assisted) — Using AI to improve diversity, equity, and inclusion. Tools like Textio analyze job postings for biased language. AI can also identify pay equity gaps and representation trends in workforce data.

E

Employee Engagement (AI-analyzed) — AI analyzing survey responses, communication patterns, and feedback to identify engagement trends, flight risks, and team dynamics.

Explainability — The ability to understand why an AI made a specific decision. Critical in HR: if AI rejects a candidate, you need to be able to explain why. “The AI decided” is not an acceptable answer.

G

Generative AI — AI that creates new content. When ChatGPT writes a job description or performance review, that’s generative AI.

H

Hallucination — When AI generates false information confidently. In HR context: AI might invent policy requirements, fabricate legal standards, or generate incorrect compliance information. Always verify.

HireVue — An AI-powered hiring platform that assesses video interviews and chat-based assessments. Evaluates candidates against job-relevant competencies. Subject to increasing regulatory scrutiny.

L

Large Language Model (LLM) — The technology behind ChatGPT and Claude. Generates text by predicting likely next words. Useful for drafting but doesn’t understand employment law or your company culture.

Lattice — An HR platform with AI features for performance reviews, engagement surveys, and goal tracking. AI helps managers write better reviews and identify trends.

N

NYC Local Law 144 — New York City law requiring employers to conduct annual bias audits on AI tools used in hiring and promotion decisions. Requires public disclosure of audit results and candidate notification.

P

People Analytics — Using data (increasingly AI-powered) to make HR decisions. Includes: turnover prediction, engagement analysis, compensation benchmarking, and workforce planning.

Predictive Analytics — AI forecasting future HR outcomes. Which employees are likely to leave? Which teams are at risk of burnout? Which candidates are most likely to succeed? Based on historical patterns.

Prompt — The instruction you give an AI tool. “Write a job description for a senior marketing manager at a 200-person SaaS company” is a prompt.

R

Resume Parsing — AI extracting structured data (name, experience, skills, education) from resumes in various formats. A basic AI feature in most modern ATS platforms.

S

Sentiment Analysis — AI determining whether text is positive, negative, or neutral. Used in HR for analyzing employee survey responses, exit interview transcripts, and Glassdoor reviews.

Skills-Based Hiring — Evaluating candidates on demonstrated skills rather than credentials. AI can help by assessing skill-based assessments objectively, though bias monitoring is still needed.

T

Textio — An AI writing tool that analyzes job postings for biased language and suggests inclusive alternatives. Based on data from millions of job postings and their outcomes.

Training Data — What the AI learned from. If an AI hiring tool was trained on data from a company that historically hired mostly men, it may learn to prefer male candidates. This is why bias auditing matters.

W

Workforce Planning (AI-assisted) — Using AI to forecast hiring needs, identify skill gaps, and plan for organizational changes. Based on historical data, market trends, and business projections.

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