How Icelandair is rethinking HR with AI

BUSINESS GAPS

The challenge

Many of Icelandair's HR processes depended on manual reviews, emails and repetitive administration. Recruitment and onboarding required background checks, employment history verification, document collection and approvals before employees could begin work. Small errors often delayed applications and, in some cases, postponed employees' start dates.

For the HR team, these weren't isolated tasks. Every new hire required employment histories, supporting documents and approvals to be checked before a background check could be submitted to the police. If information was incomplete or incorrect, the application had to be returned, delaying the process and, in some cases, preventing new employees from starting work on time. In a highly regulated industry, even small errors created significant administrative effort for HR and unnecessary frustration for new starters. Those pressures became even greater during peak hiring periods, when HR needed to process large volumes of new hires and returning employees across multiple teams.

The same challenges extended well beyond onboarding. Health grant applications required HR to manually review over 3,000 receipts every year, checking each claim against company policy before approved payments were entered into payroll. Passport updates involved validating documents and transferring information between systems, while other routine processes relied on employees completing forms correctly the first time. When information was missing or inaccurate, HR had to step in, creating additional administration for both the team and employees.

As they began mapping these processes, Icelandair realised many followed the same pattern: skilled HR professionals were spending valuable time on repetitive validation, document handling and data entry. It became clear that AI could support much more than onboarding alone, helping the team automate routine work while maintaining the high standards of accuracy and compliance the business depended on.

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50SKILLS

Our solution

Rather than trying to automate every HR process at once, Icelandair began by tackling one of its most complex and time-consuming workflows: onboarding. Working with 50skills, the team redesigned the process to reduce manual administration while ensuring every step still met the airline's strict compliance requirements.

AI was introduced to support one of Icelandair's most time-consuming onboarding tasks. Before employment histories are submitted to the police for mandatory background checks, AI reviews the information, identifies any missing details and automatically requests clarification from the employee. By resolving issues before applications are submitted, the process reduces delays that could otherwise postpone employees' start dates, while allowing HR to focus on the cases that genuinely require human input.

Following the success of onboarding, Icelandair applied the same approach to other HR processes. Health grant applications, which once required thousands of receipts to be checked manually each year, are now reviewed by AI against the company's policy before approved payments are passed directly to payroll. The team has also introduced AI into workflows such as passport updates, document validation and crew ID generation, allowing HR to focus on decision-making rather than administration.

Today, more than 20 HR workflows have been digitised through 50skills, with the team continuing to identify new opportunities to simplify processes, improve the employee experience and make better use of AI.

BUSINESS IMPACT

The Results

200+ hours saved on onboarding over 12 months

Automating the onboarding journey transformed one of Icelandair's most time-consuming HR processes. Tasks that previously relied on manual document collection, employment history checks and repeated follow-ups are now completed far more efficiently, saving more than 200 hours of administration. By identifying missing information earlier in the process, AI helps reduce delays and ensures employees can complete the necessary checks before their start date.

From repetitive administration to strategic work

The impact quickly extended beyond onboarding. Today, AI supports a growing number of HR workflows, removing an estimated four to five months of manual administration each year. Rather than spending hours reviewing documents, validating information or transferring data between systems, HR professionals can focus on higher-value work, confident that routine validation tasks are being completed accurately and consistently.

A smoother experience from day one

Automation has improved the experience for employees as well as HR. Instead of waiting for documents to be reviewed manually, employees receive immediate feedback if information is missing or incorrect, allowing them to resolve issues much earlier in the process. This creates a faster, more transparent onboarding experience while helping ensure compliance requirements are met before employees begin work. It also helps the team scale hiring more efficiently during peak recruitment periods, without adding to the administrative workload.

One workflow became many

The success of onboarding demonstrated that the same approach could be applied across many other HR processes. Today, AI also supports employee health grants, passport validation, document verification and other routine workflows. One standout example is the health grant process, where AI reviews over 3,000 employee receipts each year against company policy before approved claims are sent directly to payroll. By removing repetitive administration from these processes, Icelandair has created a scalable approach to HR automation that continues to evolve as new opportunities are identified.

BUSINESS BENEFITS

From one workflow to continuous innovation

Compliance without compromising efficiency

Operating in a highly regulated industry means every HR process must be accurate, auditable and compliant. By automating routine validation tasks, Icelandair has reduced the risk of errors while ensuring critical processes, such as police background checks and document verification, are completed more consistently. HR can be confident that applications are complete before they move forward, helping new employees start on time.

More time for people, less time on paperwork

By removing repetitive administrative work from HR, the team can focus on supporting employees, improving processes and delivering greater strategic value to the business. Rather than spending hours reviewing documents, transferring data or following up on missing information, HR professionals can concentrate on the work that benefits most from human expertise.

A platform for continuous improvement

What began as a solution to a single onboarding challenge has become the foundation for wider HR transformation. With more than 20 workflows now digitised, Icelandair continues to identify new opportunities to automate routine tasks, improve employee experiences and make better use of AI. Each new workflow builds on the success of the last, creating a scalable approach to innovation across HR.