Poonawalla Fincorp Embraces AI for HR Transformation
MUMBAI: Poonawalla Fincorp, a prominent non-banking finance company, is pioneering the integration of Artificial Intelligence (AI) into its human resource (HR) processes. This strategic move not only aims to optimize hiring processes but also to proactively manage potential risks and enhance accuracy in AI-driven recruitment.
Leadership Changes Spark AI-Driven Initiatives
The company underwent significant changes in its top management earlier this year, culminating in the appointment of Arvind Kapil as the new Managing Director and CEO in June. Under his leadership, Poonawalla Fincorp has embarked on an AI-led transformation focusing initially on talent acquisition.
AI: A Game-Changer for Hiring
“AI is a critical development and one of the big bets for a managing director,” Kapil stated. He emphasized the importance of HR as a starting point for AI implementation. “We will gradually expand AI integration into various departments, such as customer service, compliance, credit, and more,” he explained.
Collaboration with IIT Bombay
In a bid to enhance its AI capabilities, Poonawalla Fincorp has partnered with the Indian Institute of Technology (IIT) Bombay. This collaboration is expected to foster innovation and drive the integration of advanced AI solutions in various business functions.
Faster and More Efficient Hiring Processes
The application of AI technologies will significantly reduce response times for candidates, as the tools will automate checks including resume parsing. This shift not only improves the quality of candidate fit but also lowers hiring costs, according to Kapil.
Streamlined Offer Process
Kapil noted, “The entire process has been designed to predict what kind of offers we can make. By reading salary slips, we can ascertain current compensation, which is critical for formulating our offers.”
Quick Offer Turnaround
Highlighting efficiency, he mentioned, “Our shortest hiring time has been within 12 working hours. We’re striving to condense this timeline even further. In most cases, we can issue offers within a day, with about 80% of our hiring being conducted through this expedited process.”
Projected Cost Reductions
According to Kapil, the shift to AI will lead to an anticipated cost reduction of 50-60% over the next three years, providing significant financial benefits to the company.
Insights from IIT Bombay
Pushpak Bhattacharyya, from the Department of Computer Science and Engineering at IIT Bombay, remarked: “AI is instigating substantial changes in the financial services sector. Poonawalla Fincorp’s initiative is a promising endeavor to transform business operations through AI.”
Ongoing Transformation Projects
He added, “We are currently engaged in HR and other transformation projects, with more initiatives planned in the near future. This collaboration showcases the potential of academia working alongside industry to solve real-world business challenges.”
Conclusion
Poonawalla Fincorp’s commitment to integrating AI in HR processes reflects a broader trend of technological transformation within the financial services industry. As they continue to innovate, the impact of these initiatives may redefine hiring norms and operational efficiencies.
Questions and Answers
- What AI initiatives is Poonawalla Fincorp undertaking?
Poonawalla Fincorp is integrating AI in human resources to enhance talent acquisition processes, manage risks, and improve hiring accuracy.
- What has changed in the company’s leadership?
Earlier this year, Arvind Kapil was appointed as the new Managing Director and CEO of Poonawalla Fincorp, initiating an AI-led transformation.
- How does AI impact the hiring process?
AI streamlines the hiring process by automating tasks like resume parsing, increasing response times, improving candidate fit, and reducing costs.
- What are the expected cost reductions from AI implementation?
The company forecasts a 50-60% reduction in hiring costs over the next three years through AI initiatives.
- Who is collaborating with Poonawalla Fincorp on AI projects?
Poonawalla Fincorp has partnered with IIT Bombay to facilitate the implementation of AI solutions across its business functions.
