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Technology Acceptance Model to Assess Employee's Perception and Intention

of Integration of Artificial Intelligence and Human Resource Management in
IT Industry

Article in International Journal of Advanced Science and Technology · June 2020

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 International Journal of Advanced Science and Technology
Vol. 29, No. 3, (2020), pp. 11485 - 11490

Technology Acceptance Model to Assess Employee’s Perception and Intention of

Integration of Artificial Intelligence and Human Resource Management in IT
Industry

Dr.Gurinder Singh, Dr.Garima Bhardwaj, S Vikram Singh,Vinay Kumar

Abstract
The role and effects of Artificial Intelligence is being vastly explored in various areas. This Research is covering the various features of
the artificial intelligence, and also about the effect of AI on HRM because of emerging technologies specially in the area of Information
Technology. Currently most of the organizations are using the AI in their area in order to increase the output of organization and also to
manage their employees. Role of Artificial intelligence in Human resources starts with the selecting of profiles, prospective candidates
and recruitment and continue till the leaving of employees. The aim of this research paper is to study Employees willingness to adopt
Artificial Intelligence (AI) enabled technologies in IT sector in Delhi/NCR area in the department of Human resources and also to find
out its rate of the adoption. This research proposes a perfect model who will serve as a design for industries. The research method used
is descriptive and shows that the significance of TAM (Technology Adoption Model) in Artificial Intelligence(AI ) is still have future
research scope. The further objective of research is also to analyze the employee perception and willingness to adopt artificial intelligence
in Human resource functions to find out that acceptance of this technology HR supported by employees and also to find out its
compatibility with HR functions. The study was done between 115 HR officials working in IT sector in Delhi/NCR. The method used for
testing hypothesis is multiple regression and it established a healthy relationship between HR and AI. Based on the data obtained and the
study in this research, we have proposed a new model. The variables namely perceived ease of use, Perceived innovativeness, employee
perception. It also confirmed that the increasing application of AI at a workplace provide improved HR activities performance. This
paper also covers various aspects of Artificial intelligence; a new revolution in the industry with brand name Industry 4.0.

Keywords: Innovation, Artificial Intelligence Ease of use, technology adoption, technology adoption model, Industry 4.0

INTRODUCTION:
The Artificial Intelligence is a very advance innovation and emerging technology which enables human like intelligence in
the machines. AI is an advance technology which make possible for machines to learn from and provide their
recommendation or act based on the preserved data. In the area of HRM, AI can be utilized in various ways to arrange or
manage processes and enhance efficiency of organization. The characteristics of AI differentiate it with any other common
software because of its ultra-speed computation power, very advanced algorithm and quality data. This software enables us
stable and accurate everyday processes. In Human resources,[1] AI offer tremendous possibilities to enhance the HR
functions of any organization such as recruitment, salary calculation, employs self-service, self-access to salary slips and
numerous other facilities. AI training devices and software engineers are working closely to establish large amount of data
and then using artificial Intelligence to provide better methods to working [2].

The overall development of an industry is based on many factors like efficiency of manpower, technology being used,
intelligent use of all resources at a minimal expenditure. This study is giving special attention on the

advantages of Artificial Intelligent and the special features of AI for HR through Agnostic Chabot technology with respect to
smart automation. With the advancement of AI, this research is also establishing hat introduction of new innovations based
technology is the most suitable method to perform HR activities automatically with improved security[3]. When we adopt
AI-based HR technology in any organization, it can provide both short- and long-term benefits of organization. During
study it was established that industries are having many benefits of them. In current scenario, increasing number of startups
are working on AI-based technology and also provide AI services to HR functions for various activities. For today’s rapid
changing global economy for remaining competitive, industries are working hard to collaborate AI with HRM in many
decision-making processes[4]

ISSN: 2005-4238 IJAST 11485

Copyright ⓒ 2020 SERSC
 International Journal of Advanced Science and Technology
Vol. 29, No. 3, (2020), pp. 11485 - 11490

This Research is more to provide new substructure of Artificial Intelligence in Human Resources for new era emerging
industries.

LITERATURE REVIEW
As per new research, presently about 38% industries have already introduced AI at their workplaces and 62%
organizations are working very hard to introduce AI in their group. Leading group Deloitte report says that 33% employees
are welcoming AI at their workplace since if routine and repetitive assignments can be performed automatically by special
arrangements the manpower will have more working hours for creative and innovative tasks.[5]. Few top organizations like
IBM is working to introduce an Artificial Intelligence system which will give reply of difficult quarries of the new joiners
for their better performance. Due to technological advantage AI systems can work and find out best possible output and
then decide final result depending on provided criteria [6]. Artificial Intelligent can also be introduced with EI( e.g.
Emotional Intelligence), by these different machines may use self-learning, thinking, organized learning and the ability to
understand people's feelings & emotions. Such robots will also help us on how to guide, give directions, maintain behavior
and emotions in an ever-changing changing environment. These smart systems digitalize and interact with people to
provide users to make rational and logical decisions [7].This smart automation replaces routine tasks with very little
manpower.AI intervention aids in CV testing, automated messaging and assists with background check and reference [8].
Total business of global HRM is expected to reach $ 30 billion by 2025. Technical upgradation, AI and introduction of
machine learning process in the HR practices help individuals to perform routine tasks in the easier and speedy way. In
coming couple of years, number of HR staffwho are working to invest in many automation processes. For example
shorting CVs are very difficult task these days but with automation it can be done in seconds without any waste of
manpower [9]. It will also help in performing the processes without any biasness and gaining expertise in the right
positions

ROLE OF ARTIFICIAL INTELLIGENCE IN ORGANIZATION

HRIS, who introduced AI with HR has created a better way to perform the tasks of HR like talent acquisition in which is
normally a time taking process as the executive have to shortlist suitable profiles from thousands of Applications.
With the implementation of AI, it served the purpose of enhancing the efficiency and automated many procedures which
like collection management and selection as per the requirement of organization. This technological Development is also
enabling minimum human interference which also help in fair recruitment or other decisions [10]. In few studies it is
established that rate of attrition and employee retention also increased with the introduction of AI in Human Resource.
There are many other benefits also which results greater acceptability of AI in the Human Resource. It is a long process and
being updated day to day as per the requirement of the Organization. Many other tasks such as leave request, Mood
Determination of employee, group training can easily managed with the help of Artificial Intelligence[11]

TAM
When the Theory of Reasoned Action (TRA) is adopted in any IT system, it is known as TAM. TAM determine the ease of
use and ease of use of an individual's intention to use the system as a conduit for actual system usage. Perceived usability is
easily understood. Researchers simplified the TAM by removing the attitude of the TRA from the current specification.
Attempts to in large TAM have normally taken one of the following approaches: by showing parts from the relative models,
by involving additional or optional faith factors, by checking the antecedents and moderators of useful use[12].
TRA and TAM have strong behavioral factors and when someone wants to work, they feel free to work without restrictions.
In practice, limitations such as capacity, time, environmental or organizational limitations, and habits of nonseriousness may
limit the freedom to work[13].

RESEARCH METHODOLOGY
Purpose of research. The main objective of the study is to find out a new technology adoption model (TAM based) to assess
Employee’s perception and Intention towards Integration of AI and HR functions which are becoming one of the biggest
technology changes in HR management. This nature of this research is descriptive; however, method of surveying was used in this
study to find the current status of AI adoption in the employee in IT organizations and using the collected data to create a new
model and validate an AI based TAM model[14].

Research and Methods of collection of Data:

Method of surveying was used to get data from employees and HR Professionals of IT Industry with good knowledge of AI
and HR functions to analyze the employee’s perception and their intention to adopt AI with HR function in their
organizations. This research is a quantitative type of research depending on two important factors: First Is Artificial

ISSN: 2005-4238 IJAST 11486

Copyright ⓒ 2020 SERSC
 International Journal of Advanced Science and Technology
Vol. 29, No. 3, (2020), pp. 11485 - 11490

Intelligence, and second is Intention to adopt. This research used the secondary data to accomplish the findings of the
research [15]. A questionnaire was used to measure the above factors from the view point of HR professional who is
working in his domain. A model was constructed to test from old studies which were related to HR functions and also to
determine the role of AI in the HR functions and make it valid for the current study. We have circulated the questionnaire to
115 HR personnel working in various IT industries. Out of 115, we have received 104 feedbacks filled back, so we used
100 responses for the purpose of data analysis. We have introduced the correlation & regression in order to find out bonding
and its effects on the Intention of adoption of Artificial Intelligence in industries with moderating role of PINS and
PEOU[16]

Hypothesis Development and Proposed Model:

Formulation of Hypothesis

H1: AI positively affects Perceived ease of use (PEOU)

H2: AI positively affects Perceived innovativeness (PINS)
H3: AI positively affects Employee Perception(EPN)
H4: Perceived ease of use (PEOU) positively affects the Employee Intention to adopt EIN
H5: Employee Perception(EPN) positively affects the Employee Intention(EIN)
H6: Perceived ease of use (PEOU) positively affects the Employee Intention to adopt EIN
H7: Perceived Innovativeness (PINS) positively affects the Employee Intention to adopt EIN

Analysis and Discussion

Standardized Cron-
Construct Items Factor bach’s CR AVE
Loadings Alpha

AI1 0.84
AI 0.83 0.83 0.72
AI2 0.85
PEOU1 0..82
PEOU 0.75 0..79 0.78
PEOU2 0.72
PINS 1 0.86
PINS 0.84 0.84 0.72
PINS2 0.82
EPN1 0.92
EPN EPN1 0.88 0.86 0.92 0.78
EINT1 0.71
EINT 0.74 0.75 0.64
EITN2 0.82

Note: AI- AI and HRM; PEOU- Perceived Ease of Use;

PINS- Perceived Innovativeness; EPN – Employee Perception; EINT - Employee Intentions to adopt

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Copyright ⓒ 2020 SERSC
 International Journal of Advanced Science and Technology
Vol. 29, No. 3, (2020), pp. 11485 - 11490

TABLE II. VALIDITY(DISCRIMINANT)

AI PEOU PINS EPN EINT

AI 0.85

0.32 0.86
PEOU
0.16 0.4 0.82
PINS
EPN 0.18 0.21 0.32 0.85

0.12 0.28 0.19 0.16 0.76

EINT
Italics figures are the sq. root of AVE & non diagonal values are the inter-built squared correlations

Fitness of Model
In order to scrutinize the models for measurement (CFA ) that is suitable for allover goodness, the research study utilize 7
common indices for fitness: “Ratio of chi square to Degrees of Freedom (χ2/d.f), Normalized Fit Index (NFI),
Comparative Fit Index (CFI), Tucker- Lewis Index (TLI), Goodness of Fit Index (GFI), Adjusted Goodness of Fit Index
(AGFI), and Root Mean Square Error of Approximation (RMSEA) [17] Findings of all the points is above than the
suggested range hence they are verifying the soundness of the MM (CFA) Model (see below Table no. III).

TABLE No. III(FIT STATISTICS OF CFA (MODEL FOR MEASUREMENT)

Fit Indices Goodness Measured
Criteria Value Values
χ2/ d.f. ≤ 0.06 5. 34

.NFI ≥ 0.90 0.94

.CFI ≥ 0.90 0.96

..TLI ≥ 0.90 0.92

.GFI ≥ 0.80 0.82

.AGFI ≥ 0.80 0.84

.RMSEA ≤ 0.05 0.04

Use of Hypotheses Model of Testing:

In order to conduct the hypothesis testing, a path analysis was conducted in the study. picture above& Table number
IV below portray findings of path values amongst the different variables and the test results of hypothesis testing
model[18] our research used standard regression values to find out the relational effect of the free variables on the non-
free variables. 5 Hypothesis amongst the 7 were found positive also able to consideration also between the level of
acceptance i.e. p< 0.001 and p< 0.0

TABLE IV. FINDINGS OF HYPOTHESES TEST

Hypothese Relation Standardized Supported
s (Positive) Regression
Weights
Yes
H1 AI > PEOU 0.136

H2 AI > PINS 0.396 Yes

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Copyright ⓒ 2020 SERSC
 International Journal of Advanced Science and Technology
Vol. 29, No. 3, (2020), pp. 11485 - 11490

H3 No
AI > EPN 0.364
H4 PEOU > EINT 0.066 Yes
H5 EPN > EINT 0.087 No
H5 PEOU > 0.462 Yes
EINI
H7 PINS > EINT 0.422 Yes

Discussion
This study observed TAM extending employees ’awareness and adoption intention for Artificial Intelligence. The
findings of the research stand strong with the developed model of research. Basic TAM indicate that there are only two
major factor i.e. PEOU and PINS who are the main factors behind the willingness to adopt (Davis 1989). Findings of our
study also reveal this. Further, the result of this factual study provides many different eye-catching perceptions. PEOU,
PINS and EPS are proved as the forefathers of attitude, but individual innovation was supposed to have little effect on
the attitudes [19].

Similarly, attitude and employee’s personal inclination towards innovation affect their ’intention to adopt Artificial
Intelligence in their working, but PEOU has no effect on the adoption intention of employees. Therefore, it suggests that
the main factor that attracts employees to select AI is not the ease of use. It is found to be very uncommon and shocking
therefore it requires deeper analysis. Main reason of it is the security concerns and also the expenditure of operating
such modern devices, which greatly outweigh the EOU. Similarly, PEOU directly affects the attitude & it reasonably
affects the intention of adoption (EINT)[20]. Thus, it may also indirectly affect the intention of adoption of employees.
Also, sufficient impact of individual innovation on intention of adoption suggests that when firms have higher
innovation inclined employees, the AI adoption ratio will increase.

The outcome of the research also indicates the main effect of PINS over PEOU. Similar results also have been seen by
past research in the area.

Interpretation, Disadvantage & Future scope of research:

There is a moment in many companies these days as adoption of AI is on the rise. IT companies, in particular, are already
designed or they are working to introduce the AI in the companies. In this condition, the purpose of understanding and
adapting employees ’perceptions is of highest significance. The initial and important result of this study was to propose and
validate a research paradigm that highlights key aspects of employee adoption in the context of AI. Second, this study
supports the results of retrospective studies that determine perceived innovation as a key or contributor to adoption intention.
Furthermore, the results obtained confirm the relationship defined by the proposed research model based on the goodness of
fit indicators. Therefore, this research model can be studied in detail in similar research areas[21].

Although the results of the study are very appreciable and motivating, it also has various disadvantages with it. The main
disadvantage of this research is area selection, it is limited to personnel’s of companies in the area of national capital. India
being a larger country of the world, a large sample size who will cover all the areas of the India can be studied to confirm the
outcomes of the research work[22]. One more drawback is that we have chosen the samples who are already working; by
doing this we may have ignored the feeling and thoughts of a larger group who will be joining these industries in next one
year. This crowd is more technology oriented[23].

Therefore, we hope to conduct further research in the following directions: First, a more detailed study of respondents
nationwide. Second, a study is needed to understand the perceptions and intentions of the final year university students who
will soon join the institutions. Finally, a more detailed analysis can be done to understand the relationship between perceived
comfort and adoption intentions for AI.
From the above analysis, it has been established that AI has its presence and importance in many HR functions. AI replaces
routine jobs in the organization with minimal intervention by humans. Reducing turnover rate and increasing talent retention
are better than humans. This study proposes an AI framework that falls under the umbrella of HR functions. Artificial
intelligence and machine language are used by many companies in the human field
Therefore, we are very positive that more number of research will come in future taking consideration to: Increase the
sample size and area by many folds. Second, a detailed study in which we may cover last year university students who are
looking for campus placement opportunity and likely to join different organizations is next one year.
From the above analysis, the existence and importance of AI in many HR functions has been confirmed. AI replaces simple
tasks in the organization with very low involvement of humans. With AI turnover rates are going down and retaining talent

ISSN: 2005-4238 IJAST 11489

Copyright ⓒ 2020 SERSC
 International Journal of Advanced Science and Technology
Vol. 29, No. 3, (2020), pp. 11485 - 11490

is better than humans. This research also proposes an AI work model under the area of HR activities. Machine language and
AI are now days being very common and many industries are using AI in the HR domain.

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ISSN: 2005-4238 IJAST 11490

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