AI’s Transformative Role in HR at Poonawalla Fincorp

Poonawalla Fincorp, a leading Pune-based non-banking financial company (NBFC), is embracing artificial intelligence to modernize its human resource operations. As part of its broader digital transformation, the company has integrated AI across multiple HR functions to boost efficiency, cut costs, and enhance the employee experience. This move reflects a growing industry-wide trend where businesses are leveraging AI to revamp traditional HR practices.

The Expanding Role of AI in Human Resources

Across sectors, AI is being deployed to streamline HR processes and make them more data-driven and responsive. Companies are using AI in areas like talent acquisition, performance monitoring, employee engagement, and workforce planning. These tools allow organizations to automate routine tasks, speed up decision-making, and personalize support, resulting in greater operational effectiveness. By integrating AI, businesses can also reduce human error and improve the overall quality of HR services.

Why AI Is Essential for Modern HR Management

As the business landscape becomes more competitive and workforce expectations evolve, the need for smarter, faster HR solutions is growing. Traditional HR systems often struggle with scale and efficiency, making it difficult to respond to changing demands. AI offers a powerful solution by automating time-consuming tasks and delivering insights based on large volumes of data. It helps organizations make objective, bias-free decisions and empowers HR teams to focus on strategic initiatives rather than administrative chores. For companies like Poonawalla Fincorp, adopting AI is not just a technological upgrade—it is a strategic necessity to remain agile and resilient.

Balancing Technology with Human Insight

While AI introduces automation and efficiency, it cannot replace human empathy, intuition, and emotional intelligence. At Poonawalla Fincorp, the approach is to use AI as a tool that complements rather than replaces human capabilities. By automating routine processes, AI frees up HR professionals to engage more deeply with employees, foster workplace culture, and address complex issues. This balanced integration ensures that technology enhances rather than diminishes the human aspect of HR.

Salil Hajarnis on AI’s Role in HR Transformation

Salil Hajarnis, Poonawalla Fincorp's CTO, has been a key driver behind the AI-led transformation. He emphasizes that AI adoption is central to the company’s vision of building a future-ready workforce. Under his leadership, the HR function has been reimagined with a focus on agility, employee experience, and data-led decision-making. “AI enables us to move faster, make better people decisions, and focus more on strategic HR,” says Hajarnis. “It’s not about replacing people—it’s about empowering them with the right tools.”

Collaboration with IIT Bombay to Advance AI Capabilities

To accelerate its AI journey, Poonawalla Fincorp has partnered with the Indian Institute of Technology (IIT) Bombay. This industry-academia collaboration focuses on developing advanced AI tools specifically suited for the financial services sector. Dr. Pushpak Bhattacharyya from IIT Bombay emphasized that such partnerships are critical for applying cutting-edge research to real-world business challenges, particularly in areas like HR and customer engagement.

Key AI-Driven HR Innovations at Poonawalla Fincorp

Poonawalla Fincorp has introduced several AI-powered features into its HR system, resulting in measurable improvements in efficiency, hiring speed, and employee support.

1. Faster Hiring Process
   The company has significantly reduced the time it takes to make job offers—from an industry average of ten days to less than one. AI tools automate candidate screening and document verification, allowing recruitment teams to close roles swiftly and cost-effectively.

2. Improved Candidate Matching
   AI systems analyze resumes against job descriptions to quickly identify candidates who best meet the role's requirements. This ensures a better fit between job seekers and positions, ultimately improving the quality of hires.

3. Real-Time Screening and Onboarding
   Candidates are now evaluated in real-time, with the AI recommending suitable applicants instantly. Automated processes also speed up onboarding, minimizing delays and reducing manual intervention.

4. Automated Job Postings
   AI handles the creation and distribution of job listings across platforms. This automation ensures consistency in messaging and reduces the workload on HR teams.

5. Employee Assistance Through AI Bots
   The company is rolling out a WhatsApp-based AI bot to address common HR queries about leave policies, payroll, and benefits. By handling repetitive questions, the bot enables HR professionals to focus on more strategic and interpersonal tasks.

6. Bias-Free Hiring Decisions
   Poonawalla Fincorp’s AI systems use objective criteria to evaluate candidates, reducing the impact of unconscious bias. This promotes diversity and inclusivity across the organization, aligning with the company’s values.

Conclusion: A Strategic Shift Toward Smarter HR

By embedding AI into its HR framework, Poonawalla Fincorp has taken a decisive step toward digital maturity. The integration has enhanced operational efficiency, reduced recruitment timelines, and improved employee satisfaction. Most importantly, it has shown how AI and human collaboration can coexist to create a more dynamic, inclusive, and forward-thinking workplace. As the financial services landscape continues to evolve, such innovations will define the next generation of HR excellence.