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"Artificial Intelligence: Redesigning Human Resource Management, Functions

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 “Artificial Intelligence: Redesigning Human Resource Management,
Functions and Practices”
- Shipra Mathur,
Faculty, University of Delhi

INTRODUCTION
Artificial intelligence was found as an academic discipline in 1956. It experienced huge optimism
and praise and then, later faced disappointment followed by loss of funding known as “AI
Winter”. In spite of all the disappointments and downfall, AI again started off with new
approaches, received success and the field was funded once again. One major claim on which the
field has its foundation is that a machine can be made to stimulate and mimic human intelligence
as human. Some people consider that AI could turn out as a big danger to humanity if the progress
continues ignoring the risks that are associated with AI (Spadafora, 2016) while some believe that
the growth of AI will create a risk of large scale unemployment.
In spite of all these general viewpoints, this fact can’t be overlooked that the rise of Artificial
Intelligence in business has begun and is expected to have a transforming effect on the human
resource function be that in terms of managing human resources, performing various HR functions
or adopting and doing various HR practices. Since, Artificial Intelligence implies machine
demonstrating intelligence, mimicking, assisting and, competing human, the traditional
organisational setups relying solely on human services are undergoing and will undergo even more
major changes with the advent of AI in human resource management.
When it comes to artificial intelligence, the human resource department should make itself clear
on two assessments-
1. How can AI be used to improve the HR management, practices and functions in the
organization, and
2. What could be possible challenges while adopting AI system in human resource
management, functions and practices?
The first assessment can be made while understanding what activities can be done through AI
more efficiently as compared to human, what are the costs and benefits involved in moving from
traditional systems to the advanced AI system, and how beneficial will the overall AI system will
prove itself for the whole set of HR activities.
The second assessment revolves around evaluating the AI system in the light of various notions
criticizing the AI systems and perceiving that these advanced machine based systems will replace
human resource managers very soon.
AI is generally divided into three stages. These are-
First Stage: Artificial Narrow Intelligence (ANI)-This is the most basic technology in artificial
intelligence, limited in scope with intelligence restricted to only one functional area.
Second Stage: Artificial General Intelligence (AGI)-In this, the artificial intelligence works at
advanced level, this includes power of reasoning, solving problems, abstract thinking which is
mostly in par with the humans.
Third Stage: Artificial Super Intelligence (ASI)-This is the highest form of intelligence explosion
in which AI will surpass human intelligence in almost all fields. (UBS, 2018)
The present chapter discusses about how AI can be proved useful in assisting and transforming
human resource management, practices and functions with real-time examples, what are the
challenges that are involved in switching to AI and finally discusses about the future of AI in
modern workplaces and human resource management.

INTERSECTION OF AI & HUMAN RESOURCE MANAGEMENT

With technologies forming basic part of almost each and every field, the most advanced one- AI is
playing a significant role and will continue to play an even more transformational role in human
resource management. What makes an AI system even more powerful than any other machines
and technology is “cognition”. Unlike other machines which just respond to command and act
upon it, AI systems have the ability to learn, decide and make decisions using various algorithms.
These systems go beyond automation, which is something very basic in the presence of an
intelligent AI system and these systems are capable of performing cognitive and other complex
mind related functions which are usually performed by humans.
The use of AI systems can help HR professionals to save their time on administrative tasks, it can
help in providing answers to routine queries and it can even help in reducing bias in HR decision
making. Today, the HR function is not just limited to historic reporting and the HR professionals
are actively making use of data for predictive analytics to understand what may be asked and
needed in the future. It could be easily said that if the organizations wish to stay competitive in the
current globalised economy, they need to look at ways to incorporate conversational AI for HR
transactions in their decision-making process. Organizations should rely on AI to perform
administrative duties so that HR departments may become more efficient. HR professionals will
be able to focus more on strategic planning on an organizational level rather than handling the
routine administrative tasks (EY).

THE PRESENT STATE OF AI IN HUMAN RESOURCE MANAGEMENT

With ever-increasing competition to find top-notch talent, there has been a shift from traditional
recruiting methods to more modern and unconventional practices (Laha, 2019). According to a
research conducted by Sierra Cedar for the year 2018-2019, Employees expect a more
personalized technology environment. This includes adoption and providing multiple touchpoints
such as chat-bots, text messaging, and intelligent voice capabilities. Only 8% of organizations
have explicitly adopted Machine Learning today, although it may be embedded in existing
technology over time, and 21% are evaluating the technology for future use. Much of what is
currently being called Artificial Intelligence or Intelligent Systems in HR technology
environments today are early forms of Machine Learning (Stacey Harris, 2018-19). It also stressed
that while adopting a certain HR technology, the organisations must see how the technology will
suit their oraganisation’s culture and should move accordingly.
The main reason as to why more and more people are inclined towards adopting AI is
responsiveness, the 24x7 services provided by chatbots are major attraction in its adoption. So at
the workplaces, employers are actively making use of AI to transform the working experience of
the employees with the organization.
 Talent Acquisition and Talent Development

Predicting attrition and dealing with it efficiently

Team training and Coaching

Figure 1: AI in Human Resource Management

AI in Talent Acquisition and Talent Development

Today, even the most basic function of human resource management- Hiring, is towards
transformation. It has been expressed and stressed over several times that finding and hiring the
right talent is a challenging task. So, the creative minds have realized that it is already high time to
address this need and thus, the vast and absolute potential in AI has led to launching of a number
of tech star-ups in this field that are making use of technologies like- Artificial Intelligence,
Machine Language (ML), Predictive analysis etc. and are helping companies in dealing with the
serious issue of talent-mismatch and getting the best talent and are transforming the hiring process
of companies with a data-driven approach.
Belong.co, launched by BITS Pilani alumnus Vijay Sharma in 2014, is a predictive hiring
platform charged with machine language. Belong.co has categorized & divided its functions and
solutions into- Curated Engine, Adaptive Search, Belong Picks, Passivity Index, 360-degree
Candidate Profile, etc. each ensuring best service to the client. It makes use of interview patterns
and factors like growth patterns, previous companies, etc. to find people who are similar to most
successful current employees. Its Passivity Index indicates the openness of a candidate to an
opportunity and tells whether he/she is inclined to move or not. Darwinbox, developed in 2015 by
Jayant Paleti, Chaitanya Peddi and Rohit Chennamaneni, provides solutions to core HR processes,
recruitment, etc by using AI platform. Currently, Darwin box serves clients like Paytm, Ekart,
Delhivery etc. EdGE Networks, started by Arjun Pratap in 2012 provides a package of AI-
powered products and services that not only help in selecting the best candidate for the job but
also recommend the best career path and personalized learning path for each employee. Thus,
beyond learning, cognitive solutions also play a role in talent development by helping HR
professionals better understand employee sentiment and more rapidly identify emerging issues
(IBM, 2017).

Predicting attrition and dealing with it efficiently

Companies are now using artificial intelligence along with the human resources to support their
strategic goals. The companies are now making this big and bold move in using the higher form of
technology- the AI for retaining employees, checking progress and many other related tasks.
Various AI powered technologies are helping companies to take better actions and decisions based
on useful and factual insights that are provided by these systems. Recently, AI system launched
and patented by IBM as “Predictive Attrition Program” can predict when and why an employee is
likely to quit a job. The accuracy of this AI system is claimed to be 95%. The AI program has
helped IBM in saving nearly $300 million in retention cost. The AI program is also capable of
predicting what is the right time to reach an employee before they decide to quit. Also with the
help of this program the dependency of IBM on global human resource department is reduced by
more than 30% (TechGig Bureau , 2019).
Team training and Coaching
Organisations are effectively making use of Artificial Intelligence to meet the coaching needs at a
scale previously impossible. Some AI programs are now able to assess the employee’s needs and
create custom programs and mini-courses as per the needs of the employees.

CHALLENGES AND RESISTANCE ASSOCIATED WITH AI

“Indeed given all the hype over AI and machine learning, it is easy to forget these aren’t
omnisciently wise systems and HR processes are generally far more sophisticated, with a tricky
human element.”
- Nick Kolakowski, Senior editor, Dice Insights
Looking at the current hype surrounding the use of AI in hiring process and delivering
personalized experiences, one major aspect that cannot be ignored in this regard is that while these
systems could prove themselves in selecting the best candidate as per the qualifications etc., they
fail to address and look at the non-technical, cultural and other intangible traits that a person could
bring to the organization thus it is still believed that these systems need to evolve with time.
It is clear that AI is causing big time shift from physical labor to intellectual work and thus it is
earning a bad name in taking over people’s job. With AI, it is often feared that the overall jobs and
employment level will reduce drastically. Well, this is not the first time that the humans are
frightened with technology taking over their jobs, similar fears were there at the time of
industrialization. Though, technology advancements lead to loss of some manual jobs, other new
jobs are always created because of technology in some other sector but things could be different
when machines start to get smarter than humans as warned by various scientists like Stephen
Hawking witnessing the progress and growth of AI. In a survey called, “The State of Artificial
Intelligence in HR” conducted by HR.com, in August and September, 2017. More respondents
predicted job losses than job gains as a result of AI in their organizations. Although a majority of
respondents do not think AI-related technologies will bring about a significant gain or loss of jobs
in their organizations, nearly twice as many say there will be a net loss of jobs as say there will be
a net gain. (HR.com, 2017)
In AI systems, the machine learns from patterns and make conclusions. Thus, it becomes
important to dive and dig deeper into understanding that what are the patterns that the AI systems
are moving forward and making decisions and conclusions else the artificial intelligence could
turn into artificial stupidity. This means, AI systems cannot always be left to work in isolation of
human assistance as it could lead to some serious blunders and that too in large number,
considering the speed with which AI systems work and deliver results.
It must be noted that although we are witnessing a tremendous growth in AI systems and its
contribution in HR functions, this fact cannot be ignored that no matter how advance these
machines become in near future, they could never really replace human beings because of one
major factor called “Emotional Intelligence”. Human beings are complex, more complex than
these machines and a machine cannot handle a human being’s emotional needs at workplace in a
way another human can do. Thus, it can be said that the machines should be left to do and handle
what they are good at handling and let humans handle what they are best at. Along with emotional
intelligence, human possess common sense reasoning and machines lack it. Hence, this point must
also be kept in mind. Also, it has been proved and reinforced in various studies that customers hate
speaking to a machine while looking for solutions to their problems. At workplaces too, no matter
how intelligent these machines become capable of reading faces, analysing moods, giving
solutions they still cannot respond and deal with human emotions in a dependable way.
Several challenges can be faced by employers while implementing the prediction and decisions
delivered by machines The first concerns fairness and legal issues, the second relates to lack of
explainability of the algorithm, and the third to the question of how employees will react to
algorithmic decisions (Cappelli, 2019)

THE FUTURE OF AI IN HUMAN RESOURCE MANAGEMENT

According to the survey “The State of Artificial Intelligence”, by HR.com, AI has the greatest
potential to enhance HR function in five functional areas- analytics and metrics, time and
attendance, talent acquisition, training and development and compensation and payroll. (HR.com,
2017)
A bias-free HR world
While humans are good at biasing, Artificial Intelligence systems are free from it. A survey
conducted by ServiceNow with more than 350 attendees at 2017’s HR Tech Conference and Expo,
revealed some interesting facts about growing popularity of chatbots and the comforts and ease
that the employees feel with them due to their human friendliness and neutrality. A survey
conducted by HR.com in 2017 revealed that around seventy percent believe that AI-based
algorithms can improve recruitment (HR.com, 2017).

High Automation
Moving in line with the current role that AI is playing in human resource management, in the
coming times, AI will be able to handle more tasks like allocating space to employees, etc. thereby
allowing the HR managers and staff to focus more on strategic decisions and tasks. It is not at all a
distant fantasy that interviews will be totally held by AI Bots, interviewing thousands at the same
time (Hooda, 2018). It is believed that AI in organisations will be used more for automation rather
than augmentation and will supplement human skills rather than replacing them.

Change in Structure of Work and Cognitive Diversity

The structure of work will change in the near future with the increasing role of AI in organisations.
The future tasks will require humans to be more creative, flexible and agile. AI will also require
reskilling of the people working in the organisation. With more automation, routine, predictable
tasks will be performed by the machines, while the humans will handle more complex and creative
tasks.

High potential in HR Analytics

The same survey, “The State of Artificial Intelligence in HR” revealed that people think that AI
has the highest potential of improving the HR function through analytics as analytics is AI’s
natural strength. Employee turnover, quality and quality of people, etc are some of the examples
where AI can provide useful insights using analytics. AI can also be used to predict training areas
and potential employee turnover.
CONCLUSION

Huge progress has been made in the area of AI and other advanced technology and HR should not
only be willing to work with it but it should embrace it as it cannot be overlooked that artificial
intelligence is transforming and has huge potential in transforming the HR processes and functions
even more. HR departments need to be open to change and should even lead it by re-equipping
their department and workforce with new technologies and should re-align their functions as per
the new changes and challenges. The HR professionals should not fear coming of AI but should
think of more creative ways in which better solutions can be arrived at and thus they should be
part of the conversations about AI and Human Resource Management. It is still a debate that
whether the upcoming AI systems will just automate the existing HR functions and will assistant
the HR professionals or it will augment people who are doing these jobs. As feared by many
scientists like Stephen Hawking, that AI could take over and can surpass human ability and
intelligence, the progresses made in AI should be kept under check. It is true that with the rise of
AI function in HR, the employees will be affected in multiple ways, and the biggest fear and risk
is mass unemployment, hence focus should be on devising ways which make AI and Human
resources as each other’s complements and not substitutes.

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