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Application of Artificial Intelligence in Human Resource Management Practices

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DOI: 10.1109/Confluence51648.2021.9377160

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 Application of Artificial Intelligence in Human
Resource Management Practices
Pooja Tiwari Ph.D Rudresh Pandey PhD
ABES Engineering College ABES Engineering College
Ghaziabad, India Ghaziabad, India
pooja.tiwari@abes.ac.in rudresh.pandey@abes.ac
Abstract— In the dynamic and competitive world, technology
has changed the pace of all the industry. Artificial intelligence
is a technology which enables the industry to grow at faster
pace and efficiently finishing their work. This technology has
entered into various departments such as finance department,
human resource department, marketing, production etc. AI
system has enabled the organization to enhance their existing
performance and efficiently performing functions on a day-to-
day basis. Currently, due to dynamic and competitive
environment people working at different managerial level are
working under pressure and understanding the need of
artificial intelligence at workplace. Authors have used
quantitative research to conduct the research and regression
methods has been used to analyse the data. AI as a technology
has a role in the different HR practices starting from talent
acquisition and extending it to the assessing the performance of
the people at work place. This research will study the relation
of artificial intelligence and HR functions and different
functions performed by HR department. The objective is to
understand the factor like innovativeness and how use of HR
operations. To conduct the study HR professionals from
different IT companies were considered. Through the analysis
the result indicated the positive linkage between different
factors such ease of use and innovativeness which clearly
indicates that AI has a influence on both the factors. This
research paper will provide indepth knowledge about artificial
intelligence which is at present a new revolution in industry
and referred as industry 4.0.
Keywords— Artificial Intelligence, Green Human Resource
Management, Potential benefits, HRM Process
I. INTRODUCTION
In the present scenario, AI has become a very popular
phenomena initiating from Silicon Valley to china and
moving on to the all the parts of the world. Artificial
Intelligence (AI) is devoted to the simulation and emulation
of human problem-solving abilities [15]. AI is very
important and helpful and has computational techniques for
doing and performing the work and related tasks that has the
need of intelligence of humans. More precisely AI can be
defined as:
x Task which requires human intelligence and
thinking like problem solving and decision
making for problem solving. [Bellman 1978]
x Designing and making machines to do job and
work that needs human acumen and
intelligence [Kurzweil 1990]
x AI is the study of computing which leads to
work requiring human intelligence. [Winston
1992]
978-0-7381-3160-3/21/$31.00 2021
c IEEE
Vikas Garg Ph.D Abhishek Singhal Ph.D
Amity University Uttar Amity University Uttar
Pradesh India Pradesh India
vgarg@gn.amity.edu asinghal1@amity.edu
x It is the study of machines and computers
which do things where humans are superior in
performing those work. [Rich and knight
2003]
According to these definitions, AI system can be defined as
Systems that act and think like humans and think and act
rationally
AI has a general impression that it is computer science. It is
very important to understand that it has lot of role in areas
like Maths, Physics, Biology, Psychology, Philosophy,
management and its application in different functions of
management and many others. The ability to combine
knowledge from all fields will ultimately benefit developer’s
progress in the quest of creating an intelligent artificial
system [16].
In the past three decades of artificial intelligence, it has been
understood that the intelligence is not only confined to the
competency of the individual but it also extends to how
much you are aware about the things around you. AI
required methods for encoding knowledge so that they can
be embedded with the computer system. Some of the
methods of AI include predicate logic, production rules,
neural networks, semantic networks, etc. The main goal of
AI is to solve the problems that are complex in nature, that
can’t be easily solved by human beings.
Fig. 1. Linkage of Artificial Intelligence
Artificial
Intelligence
Management Organisations
In the above figure it reflects the linkage of artificial
intelligence with the management and organization. It
implies that the artificial intelligence is related with the
different functions of management and provide pace in day-
to-day activities. In the year 1993, Duchessi, O'Keefe, &
O'Leary in their research paper have discussed the concept
of AI and digital technology and its
158
influence on decision making, cost reduction and different
functions of management, managing the workforce and
organizational structure.
II. LITTERATURE REVIEW
According to the recent survey conducted it has been
analysed that around 62 % of the organization are planning
to use AI in managing their management and day to day
functions and around 38% of the organizations are already
using it. Organizations which are using this technology have
seen the increase in the performance of the activity and
innovativeness. There are various authors which have
conducted research in the domain of artificial intelligence
and also explored the application of artificial intelligence in
different domains.
[1] Author in this paper have explored that how artificial
intelligence impact the different functions of human
resource management. The author in his study has
concluded that there are numerous companies which in
present competitive environment is using artificial
intelligence as a modern technology in various functions of
human resources management such as recruitment,
performance appraisal process and for the different data of
cloud-based HR system.
[2] He in his study named as “The Impact of Robotics,
Artificial Intelligence on Business and Economics” has
explored the used of Robotics and Artificial intelligence in
business and indicated that it may have adverse influence on
the different operations of the organization production,
managing performance, planning, managing the customers,
research and development etc.
[3] This study has exposed the relationship between
Artificial Intelligence and its role the development of the
human resources. The author has focused his study on
understanding the different obstacles in the technology of AI
in the domain of HR where we are unable to estimate the
amount of the investment in training. Further he noted that
this technology is quite useful for the swift investigation of
data by human.
[4] In this paper the main focus of the author is
understanding the role of AI in recruitment. The author has
concluded that in the process of the recruitment the role of
artificial intelligence is quite crucial. This technology
enables the organization for screening the candidates,
generating the auto message to candidate, managing the
relationship of the employees, interview scheduling etc.
[5] In this study, Artificial Intelligence and the Future of
work: Human- AI Symbiosis in Organizational Decision
Making. This study focuses on the usefulness of AI for the
people working in the organizations. There are others
supporting role of the artificial intelligence which includes
arriving at decisions in complex situations, handling
ambiguity, and reaching to a consensus in decision making.
Still in industry the role of employee is quite crucial and
technology will only be useful when it is well implemented
by humans when subconscious decisions are essential to
evaluate and facilitate the outcomes of decisions.
In the upcoming decade it has been analysed that artificial
intelligence can be proved as a one of the insoluble tasks in
case of decision making whereas machine language, in case
2021 11th International Conference on Cloud Computing, Data Science & Engineering (Confluence 2021)
of information technology is at the junction for different
streams in arriving at decisions during the time of
uncertainty. The applications of AI is extended to a very
wide range and also to a different disciplines like
management, psychology, software engineering’s and many
other domains [3]. In this technology the most utilized
method is learning algorithm [4] by employing the
technique of learning [5]. Moreover, there are many
researches which are conducted in the field of artificial
intelligence but not much research is conducted in the
domain of HR and understanding its role in various process.
There are numerous studies in the field of HR which
indicates that in future AI will be very crucial in the field of
HR and majority of the HR practices cab be performed and
there will be complete transformation the field of human
resource. In this study we will try to understand the role of
AI in different process of human resources such recruitment,
performance appraisal etc.
III. OBJECTIVES OF STUDY
1. To explore and understand how AI is linked with
the human resource management and its different
process.
2. To explore the and identify the different skills sets
required for association between human and
machine and its impact on innovativeness and ease
of operation.
IV. REQUIREMENT OF AI IN HR
The recently constructed Human Resource Information
System (HRIS) has defined the framework of the system's
AI applications. The Human-Computer interface feature
built by AI increases management effectiveness, and helps
to optimise the practical mechanism needed by an enterprise
to obtain, preserve and verify data. Technological
innovation in the type of AI eliminates repetitive activities
with minimal human interference [7]. AI assists in the
numerous recruiting phase tasks, such as scanning CV,
submitting automatic email, and assists in comparison
checking.[8]. It was noticed that by plummeting the amount
of turnover and also enlightening job retention, these
devices function better than the HR squad. It is shown that
AI is effectively carrying out basic HR operations, but it still
needs to be tested in complicated scenarios that are yet to be
seen. There are several explanations for AI implementation,
as it offers the company tremendous advantages with fewer
timeframe and greater accuracy [9].
159
 Fig. 2. Reasons for adopting Artificial Intelligence
Source: Artificial intelligence & Human resource Management in Indian
IT Sector: SSRN- Elsevier
Table. 1. Uses of Artificial Intelligence
Al will allow us to obtain or sustain our competitive
advantage
AI will allow us to move into new business
New organizing using AI will enter our market
Incumbent competitors will use AI
The pressure to reduce cost will require us to use AI
The supplier will offer AI-driven products and
services
Customers will ask for AI-driven offering
Fig. 3. The Business Benefits of AI
V. APPLICATION OF ARTIFICIAL INTELLIGENCE IN HR
DOMAIN
AI is a modern method for the development of genetic
science that can hear, perceive, prepare and execute
activities that enhance human efficiency without job barriers
[10]. Speech Recognition, BOTS and Algorithm (narrow
dependent AI utilities are ideal for assembling data evidence
in the HR province such as checking material and
unravelling relevant backend problems [11]) are grouped
into three major types of concern with the HR method.
Voice Recognition This technology programme translates
material into appropriate phrases, images, and internet
search pages, broadcasting information
160 2021 11th International Conference on Cloud Computing, Data Science & Engineering (Confluence 2021)
BOTS
The BOTS programme is used to search different set of
keywords on the various types of search engine.
This method is beneficial for expanding discussion,
answering questions, speaking, providing guidance and
guidelines and other useful tasks [14]. In order to address
difficult and nuanced issues, the existing AI technology
needs to be enhanced with many changes. Even the easiest
problems and choices require too many complications and
complexities. [15]
Algorithm AI
The algorithm of AI are codes and guidelines that need to be
followed inch by inch to direct AI tasks. Advanced
algorithms help to simplify numerous HR functions, such as
gathering market data, disseminating knowledge to clients,
measuring main success metrics, and monitoring employee
and prospect applicant social networking activities [16]
AI and its role in Human Resource
A. Recruiting and assessment: The most difficult activity for
84% HR executives is to filter and reviewing resumes from vast
75% pools of applicants to identify the best applicant for the
position. AI applications can search and review resumes and
75% eliminating those which are not appropriate for the position
69% offered [13] The required candidate for the job will be
screened and shortlisted by AI software.
63% B. Training and Growth: There are dynamic abilities we
need at work. AI needs the framework that will recommend
61%
videos or learning programmes relevant to work activities
59% and knowledge. These are applications that read
instructional documentation dynamically and plan connected
micro learning programs [15]. AI software can include
mostly private programmes focused on learning, such as
translating written programs [15].
Because of the prejudice in the work setting, success
improvement evaluation of human performance is a problem
for the company. AI technology can mitigate and address
bias with input. AI-driven systems measure the goal of
continuous testing and the collaborative team activities amid
workforces [19]. AI utilises within the organisation for
improved work and direct workers. By collecting
D. Retention: At one hand recruiting of skilled employees is
the utmost difficult activity and on the other end it is often
tough to retain competent personnel in the group.57 percent
company finds withholding of people at work is the hardest
and most crucial task. AI can interrupt through this obstacle
and its implementation can anticipate the needs and
behaviour of particular people at work. This technology
allows to HR specialists to be cautious and required acts
formerly the event happens [21]
Hypothesis
1. AI has a favourable effect on creativity (F).
2. The AI is favourably affecting the EOU.
3. AI is positively connected to innovation (IS).
VI. COLLECTION
The paper is a theoretical analysis focused on two key
factors: the roles of HR and Artificial Intelligence. To
supplement the results and analysis of this report, this
research often uses secondary data. Both aspects are
evaluated using a questionnaire from the viewpoint of the
HR specialist employed with technology in the HR domain
[22].
 The model builds the test and confirmation for the current
research from the preceding additional studies relevant to
HR structure and AI position in the HR field [23]. The
questionnaire was distributed between 150 HR specialists in
various IT industries, with a total of 115 input received for
this study and 110 responses were used for data processing.
In order to create relationships and constructive results on
the HR feature of AI with the moderating influence of IS
and EOU, this study uses correlation and regression [24].
DESCRIPTIVE STATISTICS AND CORRELATIONS
Variable Mean SD 1 2 3 4
Recruitment and
Selection 3.43 578 1 paign =cppst https://www.allerin.com/blog/3- principal-ways-to-leverage-
Training and
Development 4.32 489 289** 1 [6]
Performance
Management 4.56 547 321** 11 1 Lifecycle of organizations(2018) Volume 6, Issue 2 ISSN: 2321-9939,
Retention 4.01 624 356** 64** 32** 1
Ease of use 4.21 756 667** 21** 56**. 428
Note: **p<0.01, * p<0.05
AI System R2 (ΔR2) F-statistic. 34(.31) 114.02 INS R2
(ΔR2) F-statistic .12(.10) 16.34 .10(.09) 15.79 EOU R2
(ΔR2) F-statistic .02(.02) 10.05 .18(.17) 20.08 HR(F) R2
(ΔR2) F-statistic .22(.19) 26.32 .22(.19)
VII. ANALYSIS AND DISCUSSION
Analysis Theories, as seen in table III, are checked using
three models. The first theory reflects on the interaction
between AI and its consequence on HR functions [25]. The
findings have exposed the cumulative impact of AI on each
element of HR functions of proposed model. In the whole
conventional approach, the AI system has advancement and
that innovation brings a lot of innovation on HR function
that shows a mild and important impact on HR functions ((β
= .19), although the usage of AI has a comparatively very
encouraging result on ease of use with HR task (β = .32).
The first condition of the method was therefore fulfilled by
the model performance. Hypothesis 2 was tested to establish
a partnership between creativity and HR tasks,
Innovativeness Influencing Innovativeness of HR tasks (β =
.28). Important relationships with HR functions were often
noticed with Ease of Usage ((β = .45). Both theories were
confirmed by these findings.
VIII. CONCLUSION
In several HR functions, AI has its presence and meaning
from the aforementioned study. AI is seen substituting
repetitive works in HR functions with fewer human
interference [26]. By reducing the attrition rate and
increasing talent acquisition, AI is found to perform higher
than humans [27]. This report suggests an AI system that
lies within the umbrella of HR activities. Many
organisations have used artificial intelligence and computer
language in the area of automation, software engineering
and human Capital Department in which AI plays an
integral role in hiring, choosing, recruiting, monitoring
results, gathering employee data, providing real-time
information and providing reliable information.
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