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What is Artificial Intelligence and how is it shaping the Human Resource Management

 Introduction to AI and HRM

Artificial Intelligence, abbreviated as AI, is also known as Machine Intelligence. It is a substitute for natural or human intelligence. Artificial Intelligence is one of the fast-emerging technologies which stimulates human reasoning in AI systems.

In 1950, John McCarthy invents the term AI.

(L. Brinbioun, 2015) believes that AI is known as the simulation of human intelligence into machines. So that they are equipped with the capabilities to think like humans and mimic their actions. The most favorable characteristic of AI is its ability to achieve rational and efficient output.  Which is processed through learning and comprehension.

Artificial Intelligence is revolutionizing as technology is advancing. In past, the simple ability of computers to do calculations was considered to be AI, yet it is no more how we explain AI. From Google’s search, Chatbots, SIRI to self-driving cars, we can see widespread artificial intelligence (AI).

Human Resource Management  

HRM is the abbreviation for Human Resource Management. HRM or simply HR is a term that reflects the process of managing the people within an organization. The people, the biggest and vital asset and capital of the organization need proper management to ensure optimal productivity.  The HRM has three basic dimensions: recruitment, compensation and benefits, and designing work. Thereby, the HRM manager staffs the required and the best employee and ensures that the best is being attained from them.

 Application of AI in HRM

Humans and machines are a deadly combination. They can give forth the best results. The results are efficient, flawless, timely, and cost-effective. Thereby the use of artificial intelligence in HR can allow for better execution and operation. Organizational success depends on the effective combination of people, processes, and technology.

The inclusion of HRM results in the replacement of humans is a false perception. As AI has widespread application in HRM where it is offering efficient services. Which are for self-service transactions, recruiting and talent acquisition, payroll, reporting, access policies and procedures.

Around the world, companies are now investing heftily in AI for HRM. According to Global Talent Trends, by 2021, 60% of worldwide companies are planning to improve their AI deployment in HRM.

 Common Application of AI in HRM

Nonetheless, we are in an era where AI capabilities are reaching new heights and have a major impact on how businesses are operating. The Human resources executives are ensuring that they believe that AI emergence in HR administration can be beneficial.  As it has the capability to improve the overall employee experience.

Also, AI technologies have multiple opportunities in HR to improve its functions.  Which include automotive transactions, recruiting employees, talent acquisition, and automotive payroll. Other benefits are reporting, training, implementing policies and procedures.

HR Managers believe integration of AI into HR functions will help and improve the overall human resource management.

Mercer estimates that currently, 80% of the companies are already using AI in HRM in either simple form or in widespread form. Also, in China, all the organizations have already deployed AI in HRM, while in the USA the statistics are 83%.

Sector-wise division of AI

Following is the division of Applications of AI in HRM worldwide:

  • 56% of the companies are using chatbots to allow the employees to search for information such as the policies or benefits.
  • 44% are using it to filter out the most suitable candidates by accessing and utilizing the data available on public forums, social media profiles, etc.
  • 43% are utilizing AI in HRM to allow the employees to access training manuals, learning techniques and improve their skills.
  • 41% are using chatbots so that the recruitment process be easier for both the employee and the employer.
  • 40% are using the screening and assessing technology for the potential candidates during the recruitment process.

(Brin, 2018)

Deployment of AI in HRM

AI technology integration at all levels of HR will help the HR department to work better towards organizational goals. There are six dimensions of HR namely:

  • Human Resource Planning
  • Recruitment and Employment
  • Training and Development
  • Performance management
  • Compensation
  • Employee relationship management.

AI technologies need to be integrated at each dimension of HR so that efficiency, effectiveness, cost-efficiency, timely decisive actions, intelligent evaluation system, intelligent consultant system, intelligent training system and human machine interaction system can be achieved. (. Cappelli, 2019)

 Advantages of AI in HRM 

  • Effectively completing the Recruitment Process

The recruitment process starts with getting the right information at lower costs in a time-efficient and secure manner (Feinzig, 2018). AI when effectively integrated with the employee recruitment process allows the new and prospective employees to go to the right people for organizational information.

AI technology is used to process applications that are user-friendly and can allow people to help them fill in without being hesitant. This reduces the number of turnover applicants and allows to effectively complete the process.

AI is also ensuring successful candidate rediscovery as it has the capacity to not only store data but also view it at the correct time. AI can access past data, as well as the existing data of the applicants, and thereby rediscover the potential candidates. HR professionals thereby can use AI to identify qualified employees in an efficient and effective manner.

  •  Making the Onboarding Process easier

Once the recruitment is done, the most crucial stage is onboarding.  This is the stage where the employee gets familiar with the work and work environment and the manager cannot assist him 24/7. So the AI is there to help the fresh employee know about his work, the people he needs to meet and where to meet, the information he needs to get equipped with and queries that he has. Such is done through chatbots and remote support applications. This allows for an improved onboarding process, reduces the administrative burden, and accelerates the process of employee integration.

  •  Helpful in Employee Retention

The AI has proven benefits in internal mobility and employee retention. The personalized feedback, surveys, employee recognition systems allow for improved employee engagement and job satisfaction. This improves the employee retention rate at the organization allowing them to reduce recruitment and training cost. The Human Resources Professional Association claims that AI software is helpful in enhancing employee success and satisfaction.

  •  Allowing automation of tasks:

One of the key benefits of the artificial intelligence human resource management process is of attaining the automation of low value, administrative tasks which allow the HR professionals to devote time to strategic planning rather than assisting the employees. This in return makes the HR department balanced and cohesive.

Smart technologies allow automating processes. Such as the administration of benefits, pre-screening candidates, scheduling interviews, and more. Although each of these functions is important to the overall success of an organization. Carrying out the tasks involved in such processes is generally time-consuming. Thus,  the burden of these duties often means that HR professionals have less time for productive tasks.

  •  Easing Data Collection and distribution

The HR benefits of using AI are various that have helped bring the revolution in the department. Some of the benefits that are being reaped in HR due to AI are:

  • empowers virtual assistants via data collection and data distribution
  • increases employee skills for efficiency in tasks that requires cross-training abilities
  • allows organizing data according to the needs of the different stakeholders.

Thereby, the use of AI in HR has helped in consuming less time for tasks and has reduced the chance of error. (Butler, 2018) The use of AI in HR has helped HR managers to focus more on strategic decisions and make the right decisions.

  •  Creation of new jobs

World Economic Forum releases it reports on AI. Which states that AI has been able to assist the demand for unique human skills and has the capability to accelerate in the future. While there is a projection that AI will be displacing 75 million current jobs.  It has a tendency to create 133 million new jobs. So the world of technology is not only based on technological skills but also vital emotional and personal skills.


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