Artificial-Intelligence-in-Human-Resource-Practices-With-Challenges-and-Future-Directions

Abstract

Artificial intelligence is a branch of science and technology that has been used effectively over the decades in various fields, and now it has become an indispensable part of organizational practices as it is one of the leading technologies in the current era, and now there is an emerging trend of applying AI technologies within the businesses. The central necessity of human resource management is also majorly based on technological approaches as it became a potential need for any human resources department to perform its role in the development of the whole organization. Technologies based on AI are and will be the smart system of the future and it's also changing the processes of human resource management by making it more dependent on advanced technologies. Through the chapter, the researcher will get to know the artificial technologies being practiced in HR practices and explore the probable and potential of technicality of AI in HRM and also the challenges associated with AI in HRM and its future possibilities.

Full text

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Chapter 15
DOI: 10.4018/978-1-7998-8497-2.ch015
ABSTRACT
Artificial intelligence is a branch of science and technology that has been used effectively over the de-
cades in various fields, and now it has become an indispensable part of organizational practices as it
is one of the leading technologies in the current era, and now there is an emerging trend of applying AI
technologies within the businesses. The central necessity of human resource management is also majorly
based on technological approaches as it became a potential need for any human resources department
to perform its role in the development of the whole organization. Technologies based on AI are and will
be the smart system of the future and it’s also changing the processes of human resource management
by making it more dependent on advanced technologies. Through the chapter, the researcher will get to
know the artificial technologies being practiced in HR practices and explore the probable and potential of
technicality of AI in HRM and also the challenges associated with AI in HRM and its future possibilities.
INTRODUCTION
The concept of Artificial Intelligence (AI) has existed for a century but it is highlighted more effectively
after the 1950s (Prasanna Matsa, 2019). Human laborers started replacing machines in the 1970s when
computers and the internet started becoming a part of working life (Yawalkar, 2019). 2012 came with a
new wave of AI and the investments have been tripled from millions to billions between 2012 to 2016
Articial Intelligence in
Human Resource Practices
With Challenges and
Future Directions
Himani Saini
GLA University, India
Preeti Tarkar
GLA University, India

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Articial Intelligence in Human Resource Practices With Challenges and Future Directions
(Lorenzo Milani, 2017). HR professionals also witnessed the electronic-Human resource (e-HR), where
the internet has emerged with human resources (HR) and the concept of the Human Resource Informa-
tion System (HRIS) came to attention when electronic means are increasing. The HR leader started tak-
ing interest in the Human Resource Information System (HRIS) because of its competitive advantages
(B. Hmoud, 2020). Now till the present one can notice that AI has come with major advancements and
implications in many sectors, a research done by Microsoft showed that AI-based speech recognition
application performance was matching human performance (Resse, 2016). Especially during covid-19,
AI technology-based programs and applications gave a developmental push to organizations. It became
necessary for them to adopt this technology to continue their businesses. Nowadays businesses trans-
forming their practices through many technologies, and Artificial Intelligence is one of the leading
technologies that promoting organizations towards productivity.
Artificial intelligence is perfectly efficient to work as the brain of humans and able to give fruitful
outputs from different inputs. The data set managed by human resources is quite small in comparison
to data science. It became easier to deal with large data with data science. As in any domain of any
organization the right techniques are required, the same is applicable to human resource management
(HRM) and artificial intelligence (AI) is one of the leading directions to be applied potentially to human
resource practices in the present era. With the transformation of time, we have seen the changes in the
disposition of jobs that have already grown labor-based to skill-based, and now the skills set requirements
are changing into the skill demands that can handle automation technologies. Automated technologies
making tasks easier and give efficient and effective results with proper utilization of innovation.
Employees are an important and necessary asset for the organization as their skills and knowledge
play a big part in the overall performance and production of the organization. Artificial intelligence
(AI) is a technological tool that gives outputs after combining technology and human intelligence. AI
tools help save time and energy for employees by self-regulation processes, and this is how AI is affect-
ing the traditional working style of human resources. HR professionals realized that they have to work
and prepare the best organizational strategies with AI tools for HR practices like hiring, performance
management, etc (Ruby Merlin,2018).
Selvaraj (2019) described briefly about the last four industrial revolution in his article where he men-
tioned that first industrial revolution i.e; Industry 1.0, was began in 1700s with initiation and launching
of engine powered machines by water, coal and steam. Industrialization advanced with the new energy
resource such as electricity, gas and oil in 1870s in Industry 2.0. After that the use of electronics and
computers has begun and came into Industry 3.0 during 1970s where the use of information technol-
ogy, microprocessors and robots has been started. Industry 4.0 came with the concept of digitalization,
advanced connected devices and technologies. The next two decades is headed towards the Industry 5.0.
With technical intelligence and digital transformations, industries have been reached their fourth
stage which was established as Industry 4.0. Human Resource Management (HRM) was also a part
of this fourth industrial revolution and it is going to be more focused in the era of 5.0. The question is
still there that how HR professionals perceived the Artificial Intelligence techniques in human resource
practices and to what degree Artificial Intelligence will impact Human Resource Management (HRM) by
its existence and implementation. With the growing phase of artificial intelligence, it has been assumed
that it will affect employment and may create a risk of unemployment on a larger scale.
To remain competitive in the current globalization of the economy, it is necessary for organizations
to adopt automation technologies for HR-related decision-making processes. In the era of Artificial
Intelligence 5.0, employees also prefer a more technologically personalized environment (Sierra Ce-

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Articial Intelligence in Human Resource Practices With Challenges and Future Directions
dar, 2018-19). Only a few organizations have adopted machine learning, and few are in the process of
evaluating the technology to such an extent that they can use them in the future. It has been researched
in a study on the Human Resource Department of some Indian IT companies that HR professionals are
having a positive perception towards advanced technology and they convinced that automation technol-
ogy will be a part of the HR workforce in coming years and it will be man-machine collaboration (P.
Barani Kumari, 2019).
An AI system launched and patent by IBM as a Predictive Attrition Program, which can predict the
reason for employee resignation or quitting the job, and the accuracy claimed by this software is 95%
(Shipra Mathur,2019).
Artificial Intelligence Era 5.0 can give huge economic benefits as it is in the exploring phase, it has
the capability to change the present. AI has become the smart system of the current era and it is impact-
ing and changing the recruitment and selection process by making it more dependent on advanced and
revolutionary technology (Bilal HMOUD, 2019). It has been found that Machine learning has made
innovative advancements in the last few years and artificial intelligence is being used everywhere from
mobile phones to flight controls (Ruby Merlin P, 2018). Researchers also have found that the most of
the workers of the organizations are excited to work with robot co-workers. (Nicastro, 2020)
ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT
Artificial Intelligence in Recruitment: As the HR department is moving towards digitalization with
artificial intelligence, and these digital processes supporting recruitment, screening, selection, and
interviewing, it is also supporting in decrease the administrative work burden and enrich workplace
learning. As interviews are the part of recruitment & selection process, a new form of video interviews
based on Artificial Intelligence techniques which are known as asynchronous video interviews (AVIs)
has been offered by several platforms, AVIs can be done anytime and anywhere in the world, it works
more efficiently for employment screening (Hung-Yue Suen, 2019). To increase the efficiency at the
workplace, use of AI tools has been increased like Engazify (to provide feedback), Obie and Niles (for
knowledge sharing), Wade and Wendy (for Career advancement), and Duolingo (learning domain). One
of the researches on the use of artificial intelligence in video interviews revealed that asynchronous
video interviews (AVIs) with AI algorithms are the most popular ways to screen the candidates, but it
has been also noticed that there are not many witnesses with respect to features that it can improve the
screening beyond the cost and time.
AI has transformed the hiring functions for Talent acquisition and talent development. Belong.co
is a platform of hiring, based on predictive analytics with machine language (Shipra Mathur, 2019), It
enables and helps in finding the best talent with their openness towards moving to the new organization.
AI-engine tools can gather structured as well as unstructured data from the resumes of candidates
and organize or select them as per the job requirement, this can help to avoid unnecessary attrition or
rehire costs if employers hire relevant employees with AI-based tools. The presence of AI in recruitment
and predictive analysis will replace human interference in routine tasks of recruitment (Richa Verma,
2019). Machines are observed to perform better than human resources by improving talent retention
and minimizing the attrition rate. By technological changes, the future focus of research will be on the
advancement of automated technology that can help HR professionals in hirings where AI can reduce
the human-related work by automation of tasks.

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Articial Intelligence in Human Resource Practices With Challenges and Future Directions
Artificial Intelligence in On-boarding and Induction: New joiners can get the required informa-
tion related to their job profile at the time of Onboarding through structured applications based on AI
technology. Artificial Intelligence allows Human Resources to enable a customized response application
for common queries of the new joiners including detail of their job responsibility, company’s rules and
regulation, policies, company information, etc. The application can also include the information of the
hierarchy of reporting managers with their contact details (Mobinius Editor, 2020), conducting an ef-
fective onboarding process can result in long-term relationships among the organization and employees.
Artificial Intelligence in Training and Development Programs: Developmental activities such as
training and development programs can be handled through Artificial Intelligence. AI-based training
and development program allows employees to learn or enhance their skills by their own. It can give
numerous benefits to employees to gain more knowledge about trending technologies. An AI-based ap-
plication program can detect and allocate the appropriate and right training to the employee by examining
the present skill-set. For the existing employee development program, an AI-based application program
can analyze the past data of the employees and suggest the required training need so that they can get
the training at right time (Mobinius Editor, 2020).
Artificial Intelligence in Performance Management: AI tools identify the good and bad performance
of the employee by automated reviews of the performance. It allows collecting information without any
delay in case of immediate action. Managers can bring out real-time data for the analysis so that the
decision can be taken on the basis of current data. Assessments and evaluations can be done without
any mental or emotional biasedness that can help in improving the overall performance of the employee.
AI-based performance management will help in improving talent management because retaining or
choosing the right talent is important. The traditional way of annual performance reviews is out of date
and it will be underrated in business value. Artificial Intelligence and machine learning will improve
talent management with performance management (Ray, 2021). The future of performance management
will be bright with artificial intelligence with high advancements
The first service which was affected by artificial intelligence is IT services, as customer-based ser-
vices like help centers, customer care, and chatbots are becoming more automated. The use of machine
learning has replaced some functions of Human Resources Management specifically in the IT industry
(Malathi Sriram 2017). Model-based findings on some companies concluded that there are many innova-
tive ways of implementing Machine learning and Artificial Intelligence in Human Resource functions.
There are companies who’ve started investing into AI for their HR workflows, and most of them
have invested to analyze the experience of candidate as per the job requirement as companies take this
part as priority. AI also involved in better understanding of the employee referrals by examine the kind
of candidates referred by the employees and finding who reffered the fortunate, hardworking and suc-
cessfull candidate. (Nicastro, 2020).
Stefan Strohmeier (2015) picked up six scenarios based on the capability of artificial intelligence that
can be required in human resource management, on the basis of a specified task approach. The explored
six selected scenarios are as follows, Turnover prediction with Artificial Neural Networks (ANNs),
Candidate search with knowledge-based search engines (semantic search engines), Staff rostering with
genetic algorithms, HR sentiment analysis with text mining, Resume data acquisition with information
extraction, Information extraction and Employee self-service with interactive voice response. This basically
highlighted on basis of presumption and broad application potential of AI techniques in all categories
of HR tasks. The potential of AI techniques is successful if their functions meet the requirements of HR

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Articial Intelligence in Human Resource Practices With Challenges and Future Directions
tasks. In particular, data mining technique method and information extraction techniques can be used for
recruitment and employee selection, for employee development intelligent agent techniques can be used.
Artificial intelligence enables human resource leaders to upgrade the efficiency of workers, but on
the other side still we have its impact as fear of losing jobs in people due to the automation of tasks.
Software design under AI technology is able to ease challenging jobs like recruitment and search out the
proper candidate from a large data within a limited time. For training purposes, AI software provides
personalized learning data, an AI program has the efficiency to measure the engagement of employees
and can do the comparison of the outcome whether it resulted in learning or not. Work environment
biasedness and favoritism is also a challenge for HRs to get the right feedback. AI-based appraisal or
reward can be conducted to check the efforts of and in between the employees. Recruit the right and
talented candidates are hard and it is harder to keep them. 57% of firms consider employee retention a
severe issue (Omer and Michael, 2015). AI can perceive the needs of individuals related to their raise
or disappointment with unbalanced work life. AI tools that can enhance the employees’ skills must be
adopted by the organizations. The future of HRs will be surrounded by automation and human-machine
collaboration (Ruby Merlin,2018).
Artificial Intelligence (AI) in Human Resource (HR) is a real killer app (Josh Bersin, 2018), It is
being started used in most areas of managerial activities, but risks may occur if it is not used properly.
Artificial Intelligence tools are helpful in finding the fraud and compliances of a person with his/her crime
records or bad intentions towards the company’s network data. The outcome of AI algorithms is based
on the past and cannot be transparent, so there may be some riskiness in using AI. To ensure doing the
right thing and authenticate, transparent AI will be needed. The AI in HR will be successful only when
it has big correct data will be there to train its system to give correct results (Prasanna Matsa, 2019).
There is a big positive side of Artificial Intelligence (AI) in Human Resource Management that it is
already grown in different areas and as well as it has also started doing its part for pollution control for
the society as Green HRM. AI supports various areas related to Green HRM in HR practices like hiring,
performance appraisal, operations, and workforce. By using AI in these processes reduces 55% to 60%
of traditional recruiters’ jobs with effective time-saving and 80% of help desk has been undertaken by
automatic technology which will be converted into 100% in the forthcoming future. AI-based apps are
capable of managing thousands of employee data through cloud-based chatbots. An app named AskDexter
is based on the same technology and the specialization of the app is related to future job openings with
preferred skillsets (Vikas Garg, 2019).
Artificial Intelligence has become a part of many organizations but some are still fighting to make
headway with data analytics as they are not prepared, only a small number of organizations have adopted
data analytics or AI in human resources. Those industries that have adopted artificial intelligence have
faced some challenges, but the fact cannot be ignored that all of the efforts are made so that employees
can use data analytics and predictive analytics (Peter Cappelli, 2019).
HR professionals have a positive attitude and trust toward the new emerging technologies in which
AI methods apply to support HRM effectiveness inside the organizations and its capability to uplift the
quality and HR leaders are encouraged to follow up on research and explore its potential effect on HR
functions and practices because AI will help in reshaping of the business (Bilal HMOUD, 2020). The
human resource department should be clear about how artificial intelligence can be used to upgrade HR
management and what could be the challenges they face while adopting the AI system (Shipra Mathur,
2019). An experiment conducted using a social robot to interview some candidates, robot evaluated
candidate’s behavior based on verbal and non-verbal variables and gives results against the company’s

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Articial Intelligence in Human Resource Practices With Challenges and Future Directions
emotional and cognitive profiles for existing employees in order to support the selection decisions
(Khosla et al., 2016).
The work structure of organizations will change drastically in the coming years as the role of artificial
intelligence will increase. Artificial intelligence has the forceful potential techniques through which HR
functions can be improved. Much progress has already been done in the area of HR with AI technology
and it is still going on to make HR practices more effective. Artificial Intelligence is reinventing hu-
man resource practices that focus more on strategic work rather than traditional tasks. AI tools will be
a valuable resource for Human Resource Department. AI tools are being used by many organizations
in Recruitment, Training and Development programs, Performance Management, etc. Mostly organiza-
tion has successfully integrated AI-based tools in screening recruitment and selection, AI facilitates the
Recruitment process with its techniques of screening and electronic automated messages. It is believed
by many experts and researchers that in the coming future AI will be everywhere in human resources
management but organizations still have concerns with the high cost allied with it. AI is also support-
ing Green HRM by eliminating more human work. With the automation of tasks and replacing humans
with machines, the fact cannot be ignored that people are going through the fear of losing jobs but on
the other side new job opportunities will be developed with the change in skill sets and also it gives an
opportunity to learn new skills to the people. In India, only a few organizations have adopted AI in HRM
functions, so the overall effect of this is yet to see. AI is executing very well the simple activities of HR,
but how far it can take up the complex issues of human resources that are needed to be known and the
complexity is the area that needs to be explored more. HR departments should open for the changes as it
is the present requirement for any organization to stand in the business market in the competitive world.
CHALLENGES AND RESISTANCE ASSOCIATED WITH AI IN HRM
• AI-based tools find the best talent in less time with all the technical requirements, but they are
not capable to address the non-technical or cultural qualities of a human, as these traits also mat-
ter to the organization, it is convinced that the system will include these features with time (R
Bhagyalakshmi, 2020).
• Industries are moving labor-based to skill-based due to automation, and with this effect, it is earn-
ing a negative name that AI will take over the people’s jobs and AI will reduce employment. In a
survey, conducted by HR.com in 2017 respondents predicted that there will be more job losses in
proportion to job gains cause by AI presence organizations.
• The fact that cannot be ignored that machines cannot replace human beings fully, no matter how
advanced they are, as humans have emotional intelligence, it will be an impossible task for ma-
chines to replace them. Human beings are more complex in comparison to machines and with
proven studies, it is very clear that customers don’t like to go to machines when they are searching
for solutions to their problems.
• Employee’s reactions towards algorithmic automated results or decisions also matter due to the
concerns of judgments or legal issues, which can be difficult for employees to face because deci-
sions are delivered by the machine.
• It may be difficult for employees to adapt or learn the AI tools, choosing the right candidate
to handle or manage the AI tools can be a challenge for an industry or to the HR department
(Yawalkar, 2019).

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Articial Intelligence in Human Resource Practices With Challenges and Future Directions
• As decisions related to technology implementations on the whole industry include the higher
authorities’ involvement, it can be a limitation or challenge to restrict the HR department to make
decisions in day-to-day life as technology overcomes the authority and role of HR into decision
making in an organization.
Future of Artificial Intelligence in Human Resource Management
• As per the survey “The state of Artificial Intelligence”, conducted by HR.com AI has the ability
to upgrade HR practices.
• A survey conducted by ServiceNow revealed that 70% of 350 respondents believe that AI-based
tools will improve recruitment.
• For the interviews and screening of the applicant’s quality, Intuitive solutions and chatbots will be
used. Intuitive artificial intelligence solutions are self-driven tools or machines that will work on
the basis of intuitive capabilities. It is believed that the Recruitment and selection procedure will
be done on intuitive levels with the utilization of AI technologies. Robots with highly interactive
functions, social, emotional, communicative with picture and sound will be used for face-to-face
interviews in the near future (Bilal HMOUD, 2019).
• Remote HR will become a trend in the coming future, as more companies are shifting to work
from home. Remote HR offices based on Artificial Intelligence will be the future model of HR
offices that will provide smooth officialism and fast solutions.
• Artificial Intelligence will eliminate human biasedness completely (Chapman, 2021). The AI-
technology-based system will help lower the chances of partiality or biasedness while selecting
candidates on the basis of appearance, skills, language, etc.
• Automation technology of artificial intelligence is used in sending multiple interview invitations,
application rejection letters, and other information without using any human resources. That will
help in saving time and money both at the same time.
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