The implementation of artificial intelligence (AI) in the workplace is becoming increasingly prevalent, and Chemist Warehouse, a leading discount pharmacy chain, is setting a notable example. In early 2025, the company launched AIHRA – AI HR Advisory – on their shared inbox dedicated to human resources (HR) queries. This innovative move is poised to transform how over 30,000 employees and store owners communicate HR-related inquiries by allowing AI to assist in drafting responses that HR staff can easily review and send.

After a rigorous 10-week development phase, Chemist Warehouse successfully integrated AIHRA into its HR operations, with further improvements rolled out in fortnightly cycles. This agile approach to development has enabled AIHRA to evolve from its initial “baby AIHRA” phase to what is now termed “intern AIHRA,” reflecting an increasing sophistication as the system learns from ongoing interactions with employees. Jessi Barberio, a human resources business partner at Chemist Warehouse, noted the tangible progress made with AIHRA and emphasizes the importance of continuous iteration and learning.

One of the key advantages of AIHRA is its capacity to interface with third-party data sources, such as Fair Work Australia. This integration allows the AI to access critical information regarding industry-specific award instruments and internal policies. As a result, AIHRA is effectively designed to handle low-to-moderate-risk HR topics, which include leave requests, probation periods, informal performance discussions, and the management of inactive casual employees.

The efficiency of AIHRA is particularly noteworthy; within just 30 seconds of receiving a query, AIHRA starts drafting a response. The drafted message is then waiting for an HR advisor to fine-tune and personal opinion before being dispatched to the inquirer. Furthermore, any relevant policies or forms are automatically attached to enhance communication clarity and thoroughness.

This strategic implementation could lead to significant operational savings for Chemist Warehouse. The HR advisory team is expected to save an estimated 1,950 hours annually, a considerable time reduction given that they handle around 300 email queries weekly, which can range from investigations and grievances to complex policy interpretations. Melissa Bear, the head of the people and culture advisory at Chemist Warehouse, confirmed this operational enhancement, showcasing a clear benefit of integrating AI technology into HR processes.

Barberio acknowledged that training AIHRA was a process that required time and dedication to refine its performance and ensure the output meets business expectations. The decision to publicize this advancement illustrates the profound value being realized through the AI integration. As Chemist Warehouse adopts a systematic approach to AI, they are focusing not just on short-term gains but also on developing a scalable governance framework that will support the company as it adapts and evolves in the digital landscape.

This governance strategy aims to align high-value use cases with the broader strategic ambitions of the organization while simultaneously fostering rapid value creation across various departments. The ongoing adjustments and learnings from the AI deployment are already generating quick wins that could serve as a blueprint for future technological integrations. This long-term vision, paired with immediate operational benefits, positions Chemist Warehouse to continually evolve and remain competitive in the dynamic retail sector.

The AIHRA initiative at Chemist Warehouse is a compelling case study demonstrating how businesses can effectively leverage technology to enhance productivity, streamline communication, and ultimately deliver better service to employees. As more organizations embrace AI solutions, the successes and strategies showcased by Chemist Warehouse will undoubtedly inspire similar transformations in HR departments across various industries.