Role of Artificial Intelligence in Re-inventing Human Resource Management

Abstract

Introduction: In a world characterised by volatility, uncertainty, complexity, and ambiguity, change is the only constant. Over the years, human resource management (HRM) has evolved from conventional functions of hiring and firing to being a strategic partner in organisations. Similarly, there has been a paradigm shift in the landscape of artificial intelligence (AI) from being a mere searching tool to the design and development of intelligent robots. Over the years, AI has emerged into a collection of powerful technologies re-inventing different functional areas, including HRM. The application of AI in HRM is perceived as an optimistic opportunity since it ought to bring maximum value at minimum cost. AI focuses on building tools that exhibit human-level intelligence and discernment in making decisions.

Purpose: The purpose of this chapter is to draw deeper insights into the relevance of AI in different functional areas of HRM. Integrating AI into HRM functions such as talent acquisition, training and development, performance management, employee engagement, and the like can help leverage efficiency and create an engaging employee experience. In the wake of Industry 4.0, where digitalisation has become imperative, this chapter explores the integration of AI into specific HR functions for a synergistic competitive advantage in companies. The purpose of this chapter is to signify the integration of AI into four vital functions of HRM, namely talent acquisition, training and development, performance management, and employee engagement. The objective is to chart how companies integrate various AI tools in four specific HRM functions to enhance efficiency. Also, the companies willing to implement AI in their HR functions can refer to the case studies used as exemplars in the chapter.

Methodology: This conceptual chapter is based on the secondary sources, which also build upon case studies of different companies that have implemented AI-enabled solutions and integrated them into different HRM functions and processes per needs. This chapter utilises the conceptual framework of both AI and HRM functions to give deeper insight into the challenges and implementation of technology-enabled solutions.

Findings: AI is used in HRM functions to automate repetitive and operational tasks to shift the focus to more strategic aspects. Despite many advantages of AI and machine learning, very few companies are using it, and companies may integrate technology-enabled solutions based on the size and nature of business.

Citation

Kalia, P. and Mishra, G. (2023), "Role of Artificial Intelligence in Re-inventing Human Resource Management", 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. 221-234. https://doi.org/10.1108/978-1-80455-662-720230013