Sneak Peek into Artificial Intelligence in Oracle HCM

Artificial Intelligence (AI) has moved from being a buzzword to a transformational technology. In the Oracle landscape, the integration of AI within the Human Capital Management (HCM) suite is changing how HR teams recruit, develop, and retain talent. Rather than viewing AI as a black box, it’s important to understand that Oracle’s HCM portfolio incorporates both adaptive intelligence and generative AI capabilities – each designed to assist HR professionals in different ways. 

Why integrate AI with Oracle Cloud HCM? 

The business case for adopting AI within Oracle Cloud HCM is compelling: 

• Market growth – The global AI in HR market was worth US$3.25 billion in 2023 and will reach US$15.24 billion by 2030, growing at a compound annual growth rate (CAGR) of 24.8%. The broader HR software market, which includes AI‑enabled solutions, is expected to expand from US$16.43 billion in 2023 to US$36.62 billion by 2030 (12.2 % CAGR). This expansion is driven by a shift to cloud‑based tools and the increasing use of AI/ML for recruitment and performance management. 

• Competitive advantage – A study by  AIHR found that 76% of HR professionals think their organizations will fall behind within 12–18 months if they fail to adopt AI. Companies already leveraging AI report up to 40% improvements in output quality. 
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What is this new buzzword AI or Artificial Intelligence and how does it impact the Oracle landscape?  

Let's have a brief look into the AI features of Oracle HCM and the key differences between Adaptive and Generative AI 

What is AI? – Artificial Intelligence as we all know helps us compute and automate (to an extent) our tasks and processes. 

AI in the Oracle HCM landscape, as defined, is an integration of AI technologies within their Oracle HCM Cloud Suite. AI in Oracle HCM enhances the HR processes and in turn, improves the turnaround time in a healthy way. 

Artificial Intelligence in Oracle HCM encompasses: 

• Adaptive Intelligence  
• Gen AI (AI Assist)  

What is Adaptive Intelligence in Oracle HCM?  

Adaptive Intelligence is part of Artificial Intelligence and has silently sneaked into the Oracle HCM suite and we have been using it without even realising it & without adapting to Redwood. 

Adaptive Intelligence examples in Oracle HCM are: 

• Time‑to‑hire analytics (ORC) – Predictive models assess candidate pipelines and forecast hiring timelines. This helps recruiters allocate resources more effectively. 

• Suggested candidates (ORC) – AI evaluates resumes, prior job performance and skills to recommend the best‑fit applicants for open positions, improving AI recruitment processes. 

• Career paths & development (Talent) – Adaptive models suggest career progression paths based on an employee’s skills, performance and aspirations, encouraging internal mobility. 

• Performance summary & goal setting (Talent) – AI‑generated performance summaries highlight key achievements and suggest future goals, reducing manager preparation time. 

• Journeys & surveys (Core HR) – Automated surveys gather feedback from employees and managers after key events, providing continuous insights into engagement and experience. 

Adaptive intelligence delivers incremental productivity gains without radical workflow changes. However, broader benefits emerge when adaptive intelligence is combined with newer generative AI capabilities. 

What is Generative AI (AI Assist) in Oracle HCM 

Gen AI (AI Assist) is one of the built-in features in the Redwood -Oracle HCM suite.  

It enhances the overall capability & productivity of the suite, resulting in streamlining of HR processes. And this is just the beginning. Being powered by OCI (Oracle Cloud Infrastructure), it is sure to become more robust with time.   

Leveraging OCI – LLM (Large Language Model) computing can be achieved with high performance at a low or reasonably low cost. Additionally, Gen AI ensures end-to-end security, helping user businesses to be in total control of their data.   

Classic examples of GEN AI (AI Assist in Oracle HCM)  

• Insightful suggestions – AI Assist provides managers, employees, and administrators with recommendations based on pre-existing data. It can propose performance goals, recommend learning modules, or draft personalized communications. These suggestions are editable to ensure human oversight. 
• AI‑driven performance evaluations – AI helps managers identify strengths and improvement areas by summarizing employee performance data across multiple dimensions. 
• Learner course recommendations – By analyzing skills gaps across teams, AI Assist suggests training programs that address talent profile gaps, accelerating upskilling. 
• Smart content creation – AI generates draft knowledge articles in the HR helpdesk, saving time for HR teams and ensuring articles align with existing data. 
• Automated job description summaries – In the ORC module in Oracle Fusion, AI condenses lengthy descriptions into concise summaries, making requisitions more accessible. 

Oracle Digital Assistant and Conversational HR 

Beyond adaptive and generative AI features, Oracle also enhances the HCM experience with conversational AI through the Oracle Digital Assistant. This capability integrates seamlessly into Redwood, enabling employees and candidates to interact naturally with the system  

The Oracle Digital Assistant answers employee questions, assists with self‑service transactions, and supports AI recruitment by helping candidates navigate the application process. In Redwood, generative models enable the assistant to draft messages, summarise policies and provide context‑aware suggestions. Because data is secured within Oracle Cloud Infrastructure, organizations retain control over their information while leveraging powerful AI models. 

 Embracing the AI revolution in Oracle HCM 

 AI is transforming human resources from transactional operations into strategic functions. While market forecasts predict rapid growth in AI-driven HR solutions, only a quarter of HR managers currently utilize AI tools, and few have a formal AI strategy. Organizations that adopt AI quickly can gain a competitive edge. 

Oracle’s adaptive intelligence and generative AI features empower HR teams to automate tasks, generate insights, and enhance employee experiences. By focusing on data readiness, ethical frameworks, and user training, organizations can responsibly harness AI, leading to faster hiring and improved decision-making. As Oracle Fusion Cloud applications evolve, AI will increasingly drive innovation and efficiency. 

 The AI revolution is underway within Oracle HCM and beyond. Now is the time to experiment and lead.