Chemist Warehouse Implements AI in HR to Streamline Employee Queries

What's Happening?

Chemist Warehouse has deployed an AI system, known as AIHRA, to manage human resources queries from its 30,000 employees and store owners. The AI operates on a shared email inbox, detecting questions and drafting responses for HR advisors to review and send. This system, developed with Microsoft partner Insurgence AI, utilizes Microsoft Azure AI Foundry and the Power Platform. Since its deployment at the start of 2025, AIHRA has evolved from 'baby AIHRA' to 'intern AIHRA,' handling up to 300 email queries weekly. The AI integrates with third-party data sources like Fair Work Australia to ensure compliance with industry standards and internal policies.

Why It's Important?

The use of AI in HR processes at Chemist Warehouse signifies a shift towards more efficient and automated handling of employee queries. This approach not only saves time for HR advisors but also ensures consistent and accurate responses. By automating routine tasks, the HR team can focus on more complex issues, potentially improving overall employee satisfaction and operational efficiency. The initiative reflects a broader trend of AI adoption in various business functions, highlighting its potential to transform traditional processes and drive innovation in human resources management.

What's Next?

Chemist Warehouse plans to continue refining AIHRA, aiming to further enhance its capabilities and integration with business systems. The company is adopting a systematic approach to AI governance, balancing immediate business impact with long-term strategic goals. As AIHRA becomes more sophisticated, it may handle a wider range of HR topics, potentially expanding its role within the organization. The success of this initiative could encourage other companies to explore similar AI solutions, leading to increased adoption and innovation in HR management across industries.