Artificial Intelligence 1

ARTIFICIAL INTELLIGENCE

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7th September, 2020

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ARTIFICIAL INTELLIGENCE

Introduction

Artificial Intelligence is reshaping the world and various businesses drastically. AI is a broad

term that is used to generally define the use of computers in different situations to model human-

like intelligent behavior while keeping minimal human interference (Hamet 2017). AI can also

be found in machines where the machines exhibit human traits of problem solving and learning.

Through AI, various businesses are emerging in the industries as this science allows them to

introduce various innovations to their products and services. Today, AI is commonly known as

weak AI which is developed to carry out a specific task. Weak AI can outperform humans on the

specific tasks that are specially developed for such as playing chess, whereas a general AI can

outperform human in every task that requires cognitive traits (Lu et al. 2018). Although,

Artificial Intelligence is developed to demonstrate human characteristics through robots,

however, there is still a large dependency on humans for their operative purposes. Thus, this has

given rise to a different type of labor requirement which is human intelligence for artificial

intelligence (Jia et al.2018). A few examples of AI would include SIRI and AlphaGo (Lu et al.

2018), where the computers are trained to respond to various questions through their

computerized brain.

Artificial Intelligence in businesses

There is a rising tide of automating processes and using AI in most of the areas of businesses.

The reasons for the widespread use of AI in businesses is that it can outperform humans in, if not

all, most of the activities ranging from learning, judgment, cognitive thinking and emotion

sensing (Wright and Schultz 2019). It is estimated that the business automation is likely to

replace 47% of today’s jobs that are done by human labor in 10 years of time (Frey and Osborne
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2017). Due to this factor, there are several ethical consideration and labor disputes over their

replaceable position at businesses. AI is not only replacing works of lower levels or manual

workers but it is also replacing higher level roles such as that of lawyers, paralegals and

journalists (Smith 2013). AI ecosystem requires three core components to be effectively

implemented within a business; algorithms- this is used to build the software which will be

required to process the data, big data- this is required to store, manage and assess large amounts

of data, and computing power to run millions of calculations per second to carry out the

necessary operations on the data (Quan and Sanderson 2018).

Artificial Intelligence can be used by businesses in different activities to support decisions. Some

of the ways through which businesses are commonly integrating AI in their activities are: 1)

Speech Recognition- this AI feature allows computer system to recognize human voices and

convert them into meaningful and useful format that can be processed by the computer systems

(Lu et al. 2018), 2) Virtual Reality- this innovation uses AI to create a 3D seemingly real

environment that can be experienced by humans. This helps people to interact with various

situations in a real-life environment and gain experience through simulations, 3) Decision

Management- AI is used in decision-making systems of businesses which has improved decision

making process through the use of decision tree (DT), neural network (NN) and support vector

machine (SVM) (Lin et al. 2017 p.5), 4) Robotic Process Automation (Lacity and Willocks

2016)- this requires software and various algorithms to model human actions which can be used

to carry out different business processes without getting exhausted or deteriorating efficiency.

Currently, RPA is only being used by businesses in activities where human labor is costlier or

inefficient and, 5) Text analytic and National Language Processing- uses text analytics to

understand the intent, emotions, meaning of the text through its learning methods. It is a smart
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understanding of human language by computers so that more accurate response can be generated

through Artificial Intelligence.

Application of Artificial Intelligence in Human Resource Management (HRM)

AI has been increasingly extended to the decision-making of company management, drawing in

and enabling executives to accelerate their decision-making processes. It offers effective

database and analytical assistance, helping managers to get away from tedious, mechanical work

and involve in more meaningful and valuable activities. Artificial intelligence can outperform

humans in most of the tasks (Yabanci 2019). Considering a simple thinking process where a

normal individual may take longer to remember certain information through human

consciousness, AI can instantly retrieve information from its large database and provide the most

rational response effectively. However, the application of AI in HRM is still under exploration

(Sheila 2018). In general, the application of AI in Human Resource is considered to be very

advantageous as it is designed to increase the performance of HR, minimize costs, reduce

administrative pressures and promote HR planning (Stone and Dulebohn 2013). The application

of AI in HRM department is discussed below:

Understanding knowledge and language through AI- for AI to be an effective replacement of

individuals and human capital in businesses, it is important that the machines are developed to

model humans in the most undistinguishable manner in terms of their emotions, sensing,

rationale, sentiments and intent in their language. The major AI techniques related to knowledge

learning are machine learning, data mining and pattern recognition which allow the machines to

process and use valid information (Strohmeier and Piazza 2015). AI uses text analytics for this

purpose. An application of text analytics in HRM processes includes sentiment analysis. AI is

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used to analyze the sentiments of employees, managers and various stakeholders to make more

accurate decisions of compensation ratios, leadership style, training quality and career

possibilities. Furthermore, AI uses National Language Processing for text processing, language

processing and speech processing purposes.

Genetic Algorithms for Staff Rostering- Genetic algorithms mainly comprise of problem-solving

techniques which are inspired from biological “survival of the fittest”. The application of this AI

in HRM is staff rostering. Genetic algorithm helps to match the qualitative and quantitative

requirements of a job with the qualitative and quantitative expertise of employees to find the best

fit for the task. Genetic algorithm outperforms manual selection and scheduling; given its

numerous application in HRM, it has proved to be a successful technique in staff rostering (Kim

et al. 2014).

Resume Data Extraction-Another application of AI in HRM is finding and extracting relevant

information from the resume of the potential candidates. As HRM is responsible for the process

of hiring and selection of employees, AI facilitates this process by automatic identification and

extraction of the relevant information such as qualification, experience, work periods, previous

organizations from the applications of candidates that match the job description (Karamatli and

Akyokus 2010). If done manually, this task takes longer and is subjected to human errors.

Employee Self-Service via Interactive Voice Response (IVR) - IVR allows interaction between

humans and computers through voice recognition. The application of this AI technique in HRM

is Employee Self-Service. ESS allows employees to change their personal data, benefits, or

register to a program remotely via mobile phones or net-telephones. Inputs for requests can be
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made through voice which will be recognized and understood by the computer system

(Strohmeier and Piazza 2015).

Application of AI in Saudi Arabian SMEs - Saudi Arabian SMEs have been facing various issues

for human resource management. To solve these issues, many organizations have introduced AI

in their HRM processes (Basri 2020). The issues relating to HRM have led to ineffective

marketing as well thus AI techniques are being used to model humans effectively. AI-based chat

bots allow robots to respond to queries of customers as humanly as possible through machine

learning (ML) and national language processing (NLP) techniques (Basri 2020). Furthermore, AI

is also being used to target the market effectively and record trends of the customers which help

the human capital of various SMEs to make more informed decisions.

Gap in the Literature

To conclude, the above literature discusses the application of Artificial Intelligence in HRM.

Thus, the first limitation in the paper arises that it only covers one aspect of the businesses, that

is, Human Resource Management. For future work, application of AI in broader view can be

done to evaluate its applicability in overall business. Secondly, the literature covers secondary

research from various journal articles that date up to 10 years. Therefore, the research from

articles may contain information from outdated data so there is a possibility that the information

may have changed. Although, the literature ensures that mostly recent publications have been

used for the research purposes, but the information is still subject to change.
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Bibliography

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Basri, W., 2020. Examining the Impact of Artificial Intelligence (AI)-Assisted Social Media

Marketing on the Performance of Small and Medium Enterprises: Toward Effective

Business Management in the Saudi Arabian Context.. International Journal of

Computational Intelligence Systems, Volume 13(1), pp. 142-152.

Frey, C. B. &. O. M. A., 2017. How susceptible are jobs to computerisation?. Forecasting and

Social Change, Volume 114, pp. 254-280.

Hamet, P. a. T. J., 2017. Artificial intelligence in medicine. Metabolism, Volume 69, pp. S36-

S40.

Jia, Q. G. Y. L. R. L. Y. a. C. Y., 2018. A conceptual artificial intelligence application

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Karamatli, E. A. S., 2010. Resume information extraction with named entity clustering based on

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Lacity, M. a. W. L., 2016. A new approach to automating services. MIT Sloan Management, pp.

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Lu, H. L. Y. C. M. K. H. a. S. S., 2018. Brain intelligence: go beyond artificial intelligence.

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