THE IMPACT OF ARTIFICIAL INTELLIGENCE IN

HUMAN RESOURCE DECISION MAKING PROCESSES

Dr. Neshat Qamar

Assistant Professor, Department of Human Resource Management, International School of Management, Patna, Bihar.

DOI: 10.47750/pnr.2022.13.S07.777

The modern business technology is changing the way we operate and function in earlier days. This applies to every department
in the company and Human Resources are no exception. This paper gives an insight into AI based HR approaches that is
productive in an organization which minimizes the work load in less amount of time. With the help of AI human brain logical
thinking is programmed in AI based software such as Qandle, HROne, Darwinbox,Paradox, Humanly, Seekout, etc which
makes the work of an HR department easier and more efficient in less span of time. Further in this paper some of the most
prominent AI based application is discussed such as Chatbots, Voice assistants, etc. AI deployment is done in five ways such
as Start, Decide, Identify, Implement and Roll out. Benefits of AI is also discussed in detail. The main goal of this paper is to
know the importance of AI in HR based policy.

Keywords: HR Approaches, Human Brain, Deployment, Goal.

Introduction
AI is the branch of Science that behave like a human being. With the help of programmers, the program is coded
in such a way that thinks like human beings. This is accomplished by researchers who investigate on human brains
thinking, learning, deciding and working while solving a problem and then result is being used to design a software
which can take decision. The goal of AI is to create an expert system which help the users to exhibit intelligent
behavior, learn, demonstrate, explain and give advice. The major function of AI is the development of software
based on human intelligence. Many Business organizations are using AI to enhance their overall productivity and
growth of company. Almost every industry is using AI based solution to make their work easier and faster.

Fig 1.1 Impact of AI in HR

Some of the most prominent AI based application in an HR industry are:

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 AI based software is helpful to automate repeated task by minimizing time and cost. For Eg: Screening of
Resume based on certain criteria such as Age, Language, Subject, Academic curriculum, etc

 Many organizations are implementing voice assistants to help the customers in finding the quickest solution
for their queries. This similar platform is shared with internal employees such as Google, Facebook, Amazon are
top brands who are using such concept to make their employee work easier.

 Automation of staff is done with the help of AI software. HR can design accurate learning Paths for their
team which help them to provide online training programs to their employees worldwide.

 Recruiters are shifting towards AI based hiring process to remove Bias in selection process from HR
managers. This software works on Logic and reasoning which makes process of appointment to be perfect and
more productive in an organization.

 Department of HR makes the crucial decision as well for Eg: Bonus, Salary Increment, Employee
Termination, Employee hiring, etc. This decision is more effective if it’s based on Previous data. By using
algorithm and Natural Language Generator Software we can convert data into text and draw insights faster than
conventional methods. This type of method helps the company to enhance the overall decision process of a
company.

 Many big companies have employed chatbots for communication of an employee in their premises. Chatbots
are also open for feedback. If any employee is facing any issues they can enter in this chatbots and get the response
which make them comfortable. HR uses to analyses employee benefits which help them to retain their employee
in their company.

 Companies have previous record of data of their employees which help HR to identify the productivity level
of employee below 100%.

 Resignation of an employee can also be predicted with the help of this software so that company can be
prepared with hiring of employee for similar position without hampering the work further. For Eg: Company
named Veriato uses this kind of AI based employee resignation prediction software to predict which employee in
their company is planning to go.

AI deployment in a business require 5 Steps which is as follows:

 Start

 Decide

 Identify

 Implement

 Roll Out

Fig 1.2 Deployment of AI in HR based software

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Some of the topmost AI Recruiting Software are as follows:

 Paradox: AI Assistant that interact with job Candidates via text.

 Humanly:AI Recruiting Chatbots

 Fetcher: AI based Recruitment automation software

 Manatal: AI based action such as candidate filtering and recommendations

 hierEZ: Hier Productive employees through variety of sources.

 Seekout: AI based approach in the context of search engine who are willing to be shortlisted.

 Qandle: Uses cookies to give you the best browsing experience for hiring of employee based on condition

 HROne: It is used for daily attendance, daily announcements, etc in a company. This software is based on
cloud-based human resource (HR) management solution that is helpful in overall management of staff in an
organization.

 Darwinbox: is a mobile-first, cloud-based HCM solution for human resources.

 Entelo: Recruitment tools based on predictive analytics and NLP.

Fig 1.3 AI Recruiting Software

Paradox Humanly Fetcher Manatal hierEZ Seekout

Qandle HROne Darwinbox Entelo

Following are the benefits of Application of AI in HR:

 Enhanced Candidate Experience

 Efficient and Effective Recruitment

 Enhanced Motivation

 Smarter Compensation Planning

 Personalized Learning

 Career Development for All

 24/7/365 Employee Support

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 Fig 1.4 Benefits of Application of AI in HR

Objective of the study:

 To overcome business challenges

 To enhance new skills of the employees

 To expand the employee experience

 To provide unbiased decision support

 To use HR budgets as efficiently as possible

 To knows various HR based AI tools

Research Methodology:
For this paper we have conducted an interview with few of the HR for 10-15minutes who are using AI based
application in their company to make HR Policy faster. The structures Interview included participants from all
over the country from various fields in HR such as:

 Talent Acquisition

 Testing And Selection

 Learning And Development

 Talent Management

 Compensation And Benefits

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 Performance Management

 Engagement And Culture

 Employee And Labor Relations

Interview topics included the Objectives of AI in HR and types of projects Funding, timelines, and benefits. The
Skills needed, Impact on jobs, Bias, diversity, and inclusion. Throughout this paper we analyzed interview
responses and common themes with key insights of AI impact on HR.

Challenges:
1. Employee find it difficult to interact with AI software as algorithm designed by programmers give solution
for problem based on rules not on emotions.

2. Proper training of employees is must to use AI based software.

3. Development of AI based algorithm requires expertise knowledge in HR and NLG.

4. Uses previous data to arrive at a conclusion.

5. AI has been viewed most favorably when managers have the option to override the AI recommendations

6. We always need a subject matter expert to develop an AI based HR applications.

7. Privacy Concerns

8. Ongoing Maintenance

9. Complex Integrating Capabilities

10. Lack of Skilled hands in using AI based approach.

Future Scope:
Latest technologies such as Big Data Analytics, Cloud Computing, block chain, Internet of Things” (IoT), Data
Science, Deep Learning and various upcoming emerging tools are now finding their approach to further enhance
efficiency of AI based HR departments. The IT industry is trying to make AI based HR approach Simple and easy
to use. IT based companies should overcome the security and privacy concerns of data breach of an employee.
Employees should be aware of ethical and privacy issues when they are using this technology. AI based Human
Resource uses sensitive information to create sensitive insights. Professionals should take the necessary steps to
know about current trends and lay a strong foundation of Secure AI based Recruiting Process.

Conclusion:
Artificial intelligence (AI) is reshaping the business environment as it brings both prospects and challenges for
human resource management (HRM). The Corporate needs to shift from old traditional method to complete digital
transformation. Artificial intelligence (AI) is a discovery in the world that reshapes the decision making traditional
process. It follows a certain set of algorithms and innovative computing techniques to arrive at a conclusion.
Integration of AI with the human resource department will enhance the experience for their surroundings. To
achieve company, target an organization with AI aids to comprehend its target audience and direct a plans. AI has
made machines capable of impersonating human intelligence. AI is one of the most vivacious tools for any sectors
like Production, Manufacturing, HR, Maintenance, Testing, etc . AI will still play a gigantic role in renovating
HR processes by carrying in transparency, efficacy, and perfection. AI will help us to gather a gigantic amount of

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vital human data that will transform the way the HR department functions. All HR experts talk about
personalization. There is no doubt that the impact of AI on HR Policy is going to be concrete and sustainable with
time. To meet the changing technological environment AI framework must be flexible enough to upgrade itself
regularly. AI based software is helpful to get rid of most monotonous HR jobs. It analyzes the vast amount of data
to make tangible decisions and thereby creating a holistic impact on the organization and its people.

Fig 1.5: Impact of AI in HR

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