Adoption of Artificial Intelligence in HR Practices: An Empirical Analysis

Abstract

Need of the Study: Digitalisation, machine learning, and artificial intelligence (AI) is changing at a swift pace, significantly uplifting the role of information technology. The present human resource (HR) aspect transpires AI-based resolution, are gradually more effective with HR process, time-consumption and a complex tasks surrounded by the HRM functionalities.

Purpose: This study attempts to investigate the adoption and diffusion of human resource management (HRM) with the phenomenon of AI-based applications. Hence, this study has emphasised the predictors of AI adoption like competitive pressure, performance expectancy, top management support, strategic partner, employee champion, etc. Moreover, how the AI predictors are connected with HR practices. The research sample focused on 207 HR managers and senior managers from various industries.

Methodology: This study is based on a quantitative research technique encompassing mean, standard deviation, exploratory factor analysis (EFA), Confirmatory Factor Analysis (CFA), Average Variance Extracted (AVE), and Dependent Variable (DV).

Findings: The study’s empirical findings show that higher performance expectations and higher management support are both major predictors of AI adoption. In contrast, competitive pressure did not show a significant relationship with such an intention, and the ‘employee champion’ role has a negative impact on AI adoption.

Implications: AI diffusion and implementation show a significant research gap. In previous studies, adoption in HRM was overlooked. The study’s results provide a comprehensive picture of the situation. The framework and a major contribution to the study of the phenomenon in relation to its possible role in AI’s effectiveness and quality in HRM. The research inspires a debate among service providers, policy-makers, and stakeholders, and builds an efficient workplace.

Citation

Panda, A., Pasumarti, S.S. and Hiremath, S. (2023), "Adoption of Artificial Intelligence in HR Practices: An Empirical Analysis", Tyagi, P., Chilamkurti, N., Grima, S., Sood, K. and Balusamy, B. (Ed.) The Adoption and Effect of Artificial Intelligence on Human Resources Management, Part B (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 65-80. https://doi.org/10.1108/978-1-80455-662-720230005