How HR can choose the right AI vendor: 8 key questions

As artificial intelligence (AI) becomes increasingly central to HR operations, from automating administrative tasks to revolutionising talent acquisition and people analytics, it’s no surprise that organisations are looking for the right AI-powered solutions to stay competitive. But how do you navigate the crowded marketplace of AI vendors, especially when each one claims to be the silver bullet for your HR challenges?

The People Space asked Josh Bersin, global industry analyst and CEO of  The Josh Bersin Company, who is one of the most influential voices in HR tech, to provide us with the eight top questions HR leaders should consider when evaluating AI vendors. Bersin last week released two resources, AI Trailblazers and 2025 Outlook, to help HR professionals understand the changes in the HR tech market. 

To help you make this process even more actionable we’ve added insights from Bersin’s HR Tech 2025-AI Redefines the Landscape Report and added a pro tip to help you find the right AI vendor that will help future-proof your HR function.

Key criteria for selecting AI-powered solutions in HR

1. Can the architecture integrate into your current HR tech stack and existing systems?

   It’s crucial that any AI solution integrates seamlessly with your existing HR technology ecosystem. Consider the tools your HR team already relies on – whether it's your HCM platform, ATS, or payroll system – and how the AI vendor’s solution will interact with them. A solution that requires heavy customisation or complex API integrations might slow down your implementation timeline and frustrate your IT team. Look for vendors that offer plug-and-play integrations with major HR systems like Workday, SAP SuccessFactors or ADP, as this can reduce headaches down the road.

   Insights: Josh Bersin’s HR Tech 2025-AI Redefines the Landscape Report highlights that major vendors like Workday, SAP and Oracle are embedding AI into their platforms, with features like Workday Assistant and SAP’s Joule offering advanced AI-powered interactions. Ensure your vendor is not only compatible with your systems but can also leverage these AI features to keep your HR tech stack at the cutting edge.

   Pro tip: During the demo phase ask the vendor to show how their product works with your specific tech stack. Request a technical walkthrough to ensure smooth data flow between platforms without creating data silos.

2. Is the vendor and data trusted and relevant to your industry?

   Trust is non-negotiable, especially when dealing with sensitive HR data. You’ll want to assess whether the vendor has experience working with companies in your sector. AI algorithms trained on irrelevant datasets might not meet the unique demands of your industry. For example, an AI tool that excels in retail recruitment might struggle with the nuanced roles in healthcare or finance.

   Additionally, data security and privacy are paramount. Ask about their protocols for data protection – this includes GDPR compliance for EU companies, SOC 2 compliance or any other relevant data privacy standards. It’s also worth checking if the vendor uses anonymised or secure datasets to protect the confidentiality of sensitive HR information.

   Insights: The report emphasises that as AI becomes embedded in every HR function ensuring the safety and governance of data is critical. Vendors should offer strong security protocols, particularly when AI is involved in high-sensitivity areas like workforce data, payroll or benefits. Check for industry-specific certifications.

   Pro tip: If the vendor is serving industries similar to yours, request anonymised case studies or testimonials to see their track record in solving industry-specific HR challenges.

3. Does the vendor have the AI technology underpinnings to stay up to date?

   The AI landscape is evolving at breakneck speed, so choosing a vendor with a forward-looking vision is essential. You’ll want a partner that invests heavily in R&D to stay ahead of AI trends like machine learning, natural language processing (NLP) or predictive analytics. Their ability to adapt and update their AI models will determine whether their solution can scale and remain competitive as the technology advances.

   Insights: Bersin’s report predicts that by 2025 HCM platforms will integrate more advanced generative AI features, such as intelligent agents and chatbots, across many modules. Make sure your vendor is future-proofed and capable of rolling out updates quickly, especially as AI becomes more embedded in talent management, learning and employee experience.

   Pro tip: Ask the vendor about their future product roadmap and how they plan to incorporate emerging AI trends. Are they exploring partnerships with leading AI research institutions? Do they regularly update their AI models to improve performance?

4. Does the vendor have successful clients in your industry or of a similar company size?

   There’s no better endorsement than happy customers who are similar to you. When evaluating vendors look for client success stories – especially from organisations in your industry or with a similar number of employees. Large enterprises may have very different needs compared to SMEs and you want to ensure that the vendor has a proven track record in handling companies like yours.

   Take the time to speak with these clients directly if possible. Ask about the implementation process, support after deployment and any challenges they faced along the way. Was the vendor responsive and helpful? Did the AI solution deliver the promised outcomes?

   Insights: Beyond just successful clients the impact of AI on processes like recruitment can be game-changing. Bersin’s report highlights how AI systems like Paradox have transformed recruitment by reducing time-to-hire from weeks to hours. Look for case studies where vendors can demonstrate measurable improvements in HR metrics.

   Pro tip: Case studies on the vendor’s website can be helpful, but a personal conversation with a current customer can provide a more unfiltered view of the vendor’s performance.

5. Is the system ready for you to load your company’s information?

   Getting an AI solution off the ground often requires that you input historical data, such as employee records, performance reviews and engagement survey results. Make sure the vendor’s solution can handle this influx of data without requiring excessive manual intervention. Automated data uploads, secure data import protocols and compatibility with existing databases are key factors to consider.

   Insights: As AI platforms evolve they are becoming more intuitive and capable of learning from user behaviour. For example, ADP’s new Lyric HCM platform uses AI to remember user patterns, making it easier to adopt and configure. Look for vendors offering similar innovations to streamline your data integration process.

   Pro tip: Start by loading a smaller subset of your data as part of a pilot project. This can help you identify any issues before scaling up to your full dataset.

6. Is the system tuned and trained to avoid hallucinations or poor candidate selections?

   In AI terminology "hallucinations" refer to incorrect or misleading results generated by an AI system. This can lead to poor candidate matches or even biased hiring decisions. Ensure that the AI vendor has robust safeguards to minimise these risks. This could include frequent retraining of the AI models, mechanisms for human oversight or explainable AI features that let you see why certain recommendations were made.

   Insights: The report stresses the need for transparency and explainability in AI systems, especially in high-stakes areas like recruitment. Tools like HiredScore are designed to offer clear and accurate candidate scoring, ensuring that AI-driven decisions remain fair and trustworthy. Choose vendors who prioritise transparency in their AI models.

   Pro tip: During the trial phase simulate real-world hiring or employee data challenges to see how accurately the AI makes recommendations. Test for bias by evaluating how the system performs across various demographics.

7. Does the vendor have the financial backing and management team to sustain growth?

   AI solutions aren’t just one-time purchases, they’re long-term investments. The vendor needs to have the financial health and leadership to continue delivering value as your organisation grows. Look at the vendor’s funding rounds, strategic partnerships and leadership team. Are they backed by reputable investors? Do they have a stable and experienced management team capable of steering the company through industry shifts?

   Insights: Bersin predicts consolidation in the AI market, with larger vendors acquiring fast-growing startups. It’s important to evaluate whether your chosen vendor has the stability and resources to avoid disruption during this consolidation phase. Strong financial backing and a solid leadership team are key indicators of long-term viability.

   Pro tip: Pay attention to the longevity of the vendor’s leadership team. Frequent turnover at the C-suite level could be a red flag that the company lacks stability.

8. What are the vendor’s partnerships with major players like Microsoft, ServiceNow, SAP, Workday etc?

   Strong partnerships with major technology providers indicate that the AI vendor is well positioned to stay relevant. Vendors that are part of ecosystems like Microsoft Azure, ServiceNow or Workday are more likely to have the integrations, security features and scalability your company needs. These partnerships can also reflect the vendor’s commitment to innovation and staying aligned with industry standards.

   Insights: As AI assistants and intelligent agents become more prevalent vendors with strong partnerships will be able to offer more advanced integrations and future-proof their solutions. For instance, platforms like Workday, SAP and ServiceNow are continuously evolving, and your vendor should be aligned with these developments.

   Pro tip: Enquire about the depth of these partnerships. Are they official partners or do they simply offer basic integrations? This will give you an idea of how well the vendor’s solution can mesh with your existing infrastructure.

Conclusion: Choose an AI vendor that aligns with your HR strategy

Selecting an AI vendor isn’t just about finding the latest technology, it’s about choosing a partner that will help you drive your HR strategy forward. By asking the right questions – and focusing on integration, trust, adaptability and long-term viability – you’ll be better equipped to choose an AI vendor that meets your organisation’s unique needs. AI has the potential to transform HR but only when implemented thoughtfully and in alignment with your broader organisational goals.

How to Evaluate AI Vendors in HR: 8 Questions to Ask Infographic

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