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Case Study: Transforming HR with AI-Powered Conversational Agents

About client

Our client is a global leader in advanced, energy-efficient air treatment and climate control solutions. With operations in more than 30 countries and a presence in over 50, the company employs more than 5500 people. Known for innovation and excellence, the organization continuously invests in new technologies to enhance operational efficiency and employee experience.

The challenge

The People & Culture (HR) department faced a growing challenge: an increasing volume of repetitive employee queries around HR policies, benefits, and processes. These questions consumed 30–40% of HR staff time — time that could otherwise be devoted to more strategic, people-focused initiatives. In addition, employees often had to wait for the answers, leading to delayed access to important HR information and frustration. The company needed a scalable AI-driven solution that could reduce the manual workload on HR teams, improve employee self-service, and ensure accurate, compliant responses every time.

The  solution

To address these challenges, Digisource Consulting partnered with the client to design and deploy an AI-powered HR conversational agent. Built on Microsoft Azure and integrated seamlessly with Microsoft Teams and Copilot Studio, the solution brought HR knowledge directly into employees’ daily workflows.

Tech stack ​

  • Azure Blob storage for secure policy document management

 

  • Azure AI Search to index and retrieve HR content in real time

 

  • Text-embedding-3-large & GPT-4.0 models for accurate, contextual responses

 

  • Copilot Studio for chatbot orchestration and conversational flow

 

  • Microsoft Teams as the familiar, user-friendly interface for employees

 

The solution was designed using a Retrieval-Augmented Generation (RAG) approach, ensuring responses were fact-based, consistent, and aligned with the company’s HR policies. Employees could ask questions directly in Teams or Copilot and instantly receive reliable answers 24/7 — from policy clarifications to process guidance. This setup not only streamlined HR service delivery but also established a secure, scalable foundation for future AI-driven automation across HR and other business functions.

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The benefit​

​The AI HR agent delivered measurable impact within weeks of deployment. Employees gained immediate, accurate, and compliant responses without delays, significantly improving their experience and engagement. HR staff, relieved of routine and repetitive tasks, could now focus on high-value initiatives that support the company’s long-term people strategy. The project’s success demonstrated how AI can create tangible business value:
 

  • Efficiency Gains: HR teams reclaimed significant time previously lost to​ manual queries.

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  • Employee Empowerment: Self-service access to information boosted satisfaction and reduced dependency on HR staff.

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  • Employee Experience: Employees were happy that they could get information instantly without having to wait.

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  • Consistency & Compliance: Every answer aligned with company-approved HR documentation.

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  • Future-Readiness: The secure Azure-based architecture provided a scalable foundation for expanding AI use cases in People & Culture.

Conclusion

By implementing an AI-driven HR agent, the client not only enhanced the efficiency of their HR function but also elevated the overall employee experience. This forward-looking initiative positioned the company as a digital leader, demonstrating how AI can be harnessed to transform HR operations while unlocking new opportunities for automation and innovation.

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