ArticlePDF Available

How is AI Shaping the Future of Work? Empowering Employees, Not Replacing Them

Authors:

Abstract and Figures

In the modern business world, AI is revolutionizing HR departments around the globe and is becoming an essential part of human resource management. In this paper we explore the role of AI in Human Resource Management and how it can help organizations to remain competitive and efficient, while improving employee empowerment and engagement. We conducted quantitative research involving employees and HR professionals from various sectors in Romania to explore their perceptions of AI implementation in the workplace. The data explores the extent to which AI chatbots can empower employees and improve their efficiency. Additionally, we analyze employees’ perceptions regarding the possibility of being replaced by AI, offering insights into their concerns about job displacement alongside the opportunities AI presents for job enhancement. The research findings reveal a strong positive correlation between favorable perceptions of AI and increased empowerment, while concerns about job displacement negatively affect empowerment. The study’s conclusions have significant implications for HR professionals, who can use AI tools to maximize and enhance organizational performance. Moreover, to satisfy the demands of the workforce of the future, our research also emphasizes how important it is for HR experts to integrate technology advancements into their HR strategy.
Content may be subject to copyright.
STUDIA UNIVERSITATIS BABEȘ-BOLYAI OECONOMICA
VOLUME 69, ISSUE 3, 2024, pp. 1-13
DOI: 10.2478/subboec-2024-0011
1
HOW IS AI SHAPING THE FUTURE OF WORK?
EMPOWERING EMPLOYEES, NOT REPLACING THEM
Anamaria PETRE*
Babes-Bolyai University, Romania
Patricia RAȚIU
Babes-Bolyai University, Romania
Codruța OSOIAN
Babes-Bolyai University, Romania
Abstract: In the modern business world, AI is revolutionizing HR departments around
the globe and is becoming an essential part of human resource management.
In this paper we explore the role of AI in Human Resource Management and how
it can help organizations to remain competitive and efficient, while improving employee
empowerment and engagement. We conducted quantitative research involving
employees and HR professionals from various sectors in Romania to explore their
perceptions of AI implementation in the workplace. The data explores the extent to
which AI chatbots can empower employees and improve their efficiency. Additionally,
we analyze employees' perceptions regarding the possibility of being replaced by AI,
offering insights into their concerns about job displacement alongside the opportunities
AI presents for job enhancement.
The research findings reveal a strong positive correlation between favorable
perceptions of AI and increased empowerment, while concerns about job displacement
negatively affect empowerment. The study’s conclusions have significant implications
for HR professionals, who can use AI tools to maximize and enhance organizational
performance. Moreover, to satisfy the demands of the workforce of the future, our
research also emphasizes how important it is for HR experts to integrate technology
advancements into their HR strategy.
JEL classification: O33; M12; M15; J24
Keywords: artificial intelligence (AI), empowerment, Human-AI Collaboration, job
displacement concerns, workplace transformation
* Corresponding author. Address: Faculty of Economics and Business Administration,
Babeş-Bolyai University, 58-60, Teodor Mihali Street, 400591, Cluj-Napoca, România,
E-mail: anamaria.petre@econ.ubbcluj.ro
2
1. Introduction
The rapid advancement of technologies, particularly the implementation of
AI in companies, is significantly transforming the world of work. As AI becomes more
integrated into business operations, it is reshaping various aspects of the workplace,
including the role of people in companies, the design of work, the demands on employees,
organizational structures, cultures, and leadership. This transformation requires a
rethinking of how work is done and must be actively shaped by leaders and organizations.
AI's role in shaping future work environments is significant and wide-ranging.
AI has the ability to drastically change how humans work, learn and interact by boosting
workplace productivity and creativity. However, realizing AI's full potential in the
workplace necessitates careful attention to ethical, societal, and human considerations
that will influence how AI is integrated and utilized in these environments.
The intersection of AI and human intelligence is driving the development
of a future workplace where collaboration, innovation, and efficiency are key. This
convergence is redefining traditional job functions and creating new opportunities for
employees and employers to work together in novel ways.
As the opportunities for AI in HR continue to evolve, the focus for HR
professionals will move more and more toward strategic functions such as talent
management, leadership development, employee wellbeing and positive workplace
culture. With AI handling routine tasks, HR teams can now dedicate more time to
these high-impact, value-added functions.
The introduction of AI into the workforce presents a dual-edged sword. While
AI has the potential to displace many existing jobs, it also creates new opportunities
for employment in emerging fields. This shift demands attention to workforce retraining,
job creation, and a careful balance between technological progress and human labor.
The rapid advancement of AI has also led to significant changes in work
arrangements. Automation and AI technologies have forced many workers to adapt
to new work structures and agreements that differ greatly from those of previous
generations. These changes are reshaping the traditional employer-employee dynamic
and require new approaches to work-life balance, job roles, and collaboration.
Considering all these aspects, we found it useful to explore the use of AI and
chatbots in human resource management and its impact on jobs and on human
resource management practices.
The purpose of this paper is to explore the role and impact of AI chatbots on
HR activities, analyzing how they can contribute to streamlining processes and
improving employee empowerment and satisfaction. Additionally, it examines employees'
perceptions of AI and their concerns about job displacement, providing insights into
how these perceptions impact their acceptance and usage of AI-driven tools.
The interest in this research topic is growing, and it is expected that the
potential of AI in the workplace will be better understood and implemented.
The main research questions address in this paper can be formulated as
following:
What is employees’ general perception of the integration of AI in HR functions,
particularly in terms of their involvement and job enhancement?
How do employees perceive the potential for AI chatbots to empower them
within HR processes?
3
How do concerns about job displacement relate to perceptions of AI integration
in HR?
To address these questions the paper is organized as follows:
In the first part, we presented a review of the specialized literature that
provides the foundational context for understanding the current state of AI adoption.
Next, we described the data used as well as the methodology on which the
study is based. We use a quantitative method in order to understand both employees
and human resources professionals' perceptions of using AI in HRM.
Afterwards, we presented the results, and finally we concluded with
reflections on the future of work and AI's impact on jobs and employment. Possible
future directions of study were also proposed.
2. Literature review
Artificial Intelligence involves replicating human intelligence within machines,
enabling them to perform tasks such as reasoning, learning, perception, planning,
and prediction. A notable advancement in AI is Generative AI, which is capable of
producing original content like text, images, and audio by learning from existing data.
This breakthrough is transforming industries by offering new possibilities for creating
relevant and innovative outputs.
In the field of Human Resources (HR), AI is making significant steps by
automating recruitment, refining performance assessments, and customizing employee
development. These improvements lead to enhanced efficiency and more data-
driven decision-making.
The growing adoption of AI in HRM is driven by the increasing volume of data
related to workforce management and organizational processes. According to some
authors (Chowdhury et al., 2023), the increasing adoption of AI in HRM is driven by its
potential to create value for customers, employees and organizations, concurrently.
Impact of AI-powered HRM applications on organizational and employee
outcomes
The opportunities and constraints of AI and other automated technologies
for HRM were discussed by Budhwar et al. (2022) in their systematic review of
the literature. They also looked at how the automated HRM functions can affect
organisational and employee results.
AI-enabled HRM adoption gives organisations tha chance to achieve the best
possible strategic business results, including improved overall business performance
(Li et al., 2019), cost-effective service excellence (Wirtz, 2019), operational efficiency,
customer engagement and loyalty (Prentice and Nguyen, 2020; Botha, 2019; Tarafdar
et al., 2019).
Most importantly is the fact that AI-focused HRM creates favourable employee
outcomes such as job satisfaction (Nguyen and Malik, 2022), commitment, employee
engagement, and participation, thereby increasing their performance (Castellacci and
Viñas-Bardolet, 2019). Employee retention and satisfaction have increased as a result
of the deployment of chatbots and virtual assistants driven by AI (Khan et al., 2020).
4
The AI-HRM literature, however, still lacks a thorough understanding of how AI
and related technologies can provide solutions for efficient HRM and sub-functional
areas, as well as how AI-enabled HRM functions connect to other operational tasks
to improve organisational outcomes (Agrawal et al., 2017).
Makridis and Han Hun (2021) found that employees typically feel more
empowered to exploit their abilities at work and have greater levels of well-being, as
a reaction to technological change. However, this effect is stronger when employees
receive task direction and guidance from their manager and when their organization
fosters a culture of trust.
According to research, employees are more likely to be proactive and
creative when given the freedom to use their specific and unique competences and
abilities, which helps companies innovate (Seibert et al., 2011; Zhang and Bartol, 2010).
Concerns over job displacement for HR roles
Although the positive consequences of advanced technologies are
emphasized in the literature, several negative issues have also been identified.
There have been significant concerns expressed about AI's potential to eliminate
jobs (Malik, 2020). The American Psychological Association’s (APA) 2024 Work in
America survey reveals that 41% of U.S. workers are worried that AI will eventually
make some or all of their job duties obsolete in the future. According to researchers
(Brougham and Haar, 2020), AI may eventually replace 57% of OECD employment,
and most businesses are under pressure to develop AI data analytics capabilities.
Job displacement due to AI may vary across sectors, with industries like
manufacturing and transportation, which involve more routine tasks, experiencing
more significant job displacement compared to sectors like healthcare and education.
In their theory of job replacement through AI, Huang and Rust (2018)
significantly contributed to the literature concerning this double-edged effect of AI in
services. The authors discuss how AI can reshape services, potentially replacing
service workers entirely, but also emphasize the need for employees to focus on
developing their intuitive and empathetic skills that AI cannot replicate. Only
cognitive and analytical jobs requiring little emotional or social complexity can be
completed by service robots. In people-intensive services, we still believe that
employees are the most important resource.
System level challenges
According to Brougham and Hair (2020), a major obstacle to effectively
embracing and integrating cutting-edge technologies in the workplace is employees'
unfavourable views towards technological advancements. Therefore, the question of
how to reduce employee anxiety around the integration of new technologies into
HRM operations must be addressed. In this regard, experts argue that appropriate and
significant training is crucial for minimising workers' disapproval of new technological
implementations (Brougham and Haar, 2020). Businesses will be better equipped to
handle the future of work if they can successfully combine AI technologies with the
knowledge and abilities of their employees. According to other writers (Bititci et al.,
2016), a suitable organisational culture is necessary for the long-term, successful
deployment of automation technology.
5
Fostering Human-AI collaboration
Finding a balance between automation and human interaction in the
workplace is crucial as AI develops. Increased productivity and creativity may result
from the mutually beneficial link between AI and human labour.
Nawaz and Gomes (2019) acknowledge that chatbots should not replace human
recruiters. They advocate for a collaborative approach, where chatbots enhance the
capabilities of HR teams by automating tasks and providing 24/7 assistance, ultimately
improving overall efficiency and the candidate experience in the recruitment process.
The future of work is not about AI replacing humans but about fostering
effective human-AI collaboration. For instance, AI can help design more efficient
work processes, while humans can provide creativity and emotional intelligence.
Companies have to provide training and development initiatives that give staff
members the know-how to collaborate with AI in order to optimise the advantages of
human-AI cooperation. This covers both soft skills like flexibility, problem-solving and
moral decision-making as well as technical abilities like AI and data analysis. Also,
HR managers should take into consideration that tasks that individuals will most
likely perform in the future will call for advanced emotional and cognitive abilities.
When properly implemented, with the correct people employed, HR staff retrained and
a culture of internal transparency to avoid AI from being used as a tool of control, using
AI to improve organisational performance can be successful (Sakka et al., 2022).
Additionally, given the changing nature of the workplace with its hybrid model
and increased emphasis on diversity and inclusion, HR's strategic component -
which must make use of AI's capabilities in HR, becomes even more crucial (Kaur
and Gandolfi, 2023).
A study conducted by Pan et al., (2022) explored the factors influencing the
adoption of artificial intelligence (AI) in employee recruitment. They found that perceived
usefulness, organizational culture, and job requirements significantly affect AI adoption.
The study also emphasized the importance of considering organizational and job-related
factors when implementing AI in recruitment.
According to Arslan et al. (2022), evaluating performance in teams that
include both people and robots is one of the major problems for HRM. They have
highlighted the possibilities of drawing on insights from the literature on computer
gaming, where performance evaluation models have been built to analyse human
performance in the same environment as AI, and have noted to the scarcity of existing
frameworks to guide HRM function in this regard.
AI should be leveraged not only for improving economic efficiency, but also
for cultivating a more inclusive, dynamic and rewarding work environment that values
human contributions. By addressing challenges and fostering collaboration between
humans and AI, businesses can stimulate innovation and growth, leading to a future
in which both organizations and employees can achieve sustained development.
Therefore, this study proposes three hypotheses:
Hypothesis 1: Employees who perceive AI as a tool for empowerment will
have higher satisfaction levels with HR processes.
Hypothesis 2: Concerns about job displacement will negatively affect employees’
perception of AI’s role in HR.
Hypothesis 3: HR professionals will have a more positive view of AI’s potential
than employees.
6
3. Methodology
The use of chatbots driven by generative AI in HR represents a dramatic change
towards increased productivity, responsiveness and general employee satisfaction.
These chatbots demonstrate their diverse influence on changing HR relations by
automating intricate HR processes and streamlining the employee journey.
This paper adopts a mixed-methods design, encompassing both primary
and secondary data. This study employs a quantitative research design to investigate
employees’ and HR professionals’ perceptions of AI implementation in HR functions.
Data were collected through a structured survey with two distinct respondent groups:
HR professionals and employees.
The survey included questions assessing: general perceptions of AI in HR
(5 items), job enhancement through AI integration (8 items), employee empowerment
through AI (7 items), concerns about job displacement due to AI (7 items), general
questions to identify respondents (gender, age, years of experience, company size and
job position). Except for demographic data, all the mentioned variables were assessed
using a Likert scale, ranging from strongly disagree(1) to strongly agree(5).
For the variables General perceptions of AI in HR and Employee
empowerment through AI, the items were carefully designed based on existing research
in the field to capture respondents’ perceptions. For General perceptions of AI in HR,
one of the items was: How likely are you to trust AI-driven HR decisions compared
to human-made decisions?. In the case of employee empowerment through AI, one
of the items used was: AI enables employees to make more informed decisions in
their roles.
For the other two variables (Job enhancement through AI Integrationand
Concerns about job displacement due to AI) validated scales were used: the
adapted Job Characteristics Model (Hackman and Oldham, 1976) and an adapted
version of the Fear of Job Loss Scale (Brynjolfsson and McAfee, 2014).
Data was gathered via online Google forms, and between January 2024 and
May 2024, links to the questionnaire were shared via personal contacts and social
networking sites such as LinkedIn. Out of all the responses received, only 197 were
filled completely and correctly (108 employees and 89 HR professionals).
4. Data Analysis and Results
The first part of analysis focuses on demographic data in terms of gender,
age, years of experience, company size, and job position. The study involved 108
employee respondents and 89 HR professionals. Among the employee respondents,
a majority were female (51%), with a significant portion (49%) aged 26-35 years. The
majority worked in IT, followed by commerce and finance roles. Most had 2-4 years
of experience and worked in medium-sized companies (100-500 employees). For
the HR professionals, the majority were female (70%) and aged between 36-45
years. A significant proportion (53%) held HR specialist roles, with 4 years of
experience and worked in medium-sized companies.
Next, we will analyze the data collected from both HR professionals and
employees to understand their perceptions and attitudes of AI implementation in the
workplace.
7
The first part of the analysis focuses on respondents’ perceptions of AI-
driven chatbots used in HR related activities (not general workplace tasks). Below is
a comparison of the views expressed by the two respondent groupings.
The data shows that among HR professionals, 77% agreed or strongly
agreed that AI chatbots would positively impact HR departments, with a mean score
of 4.03. Employees, in contrast, were slightly less enthusiastic, with 60% expressing
openness to AI in HR functions. However, a notable 30% were neutral, suggesting
that while many employees see the potential of AI, there is still uncertainty or lack of
familiarity with how it would impact their daily work lives.
Regarding the effectiveness of AI chatbots in addressing frequent HR-
related inquiries, HR professionals gave a positive assessment (mean score of 3.73),
with 60% believing chatbots could handle employee questions as effectively as a
human HR representative. However, among employees, 50% felt uncertain about
whether AI would meet their needs as effectively as human professionals, with only
30% expressing confidence in its capabilities. This discrepancy highlights a possible
gap in the perception of AI’s abilities between HR and general employees.
By automating repetitive work and increasing overall efficiency, AI integration
in HR aims to empower HR professionals and employees alike. Our research
indicates that although employee perceptions differ, HR experts view AI as a tool for
empowerment.
HR professionals overwhelmingly agreed (93%) that AI chatbots would save
time by automating routine tasks, with a mean score of 4.26. This would empower
HR teams to focus on HR strategic activities. Among employees, 70% agreed that
AI could help streamline HR-related tasks, though some (20%) were concerned that
this might reduce human interaction in key HR processes. Despite this, 60% of
employees indicated that they would welcome AI assistance for administrative tasks,
as long as it doesn’t replace the personal touch for more complex issues.
Both HR professionals and employees agreed that AI could enhance
autonomy in HR tasks. For instance, 86% of HR professionals believed AI would
allow employees to manage HR-related requests independently, with a mean score
of 4.20. Among employees, 55% expressed a strong preference for having the ability
to handle HR inquiries themselves. This indicates a shared belief that AI can
contribute to a more self-sufficient workforce, empowering employees to resolve
issues without having to contact HR for every request.
AI’s integration in HR aims not only to empower HR professionals but also
to improve the overall employee experience. The ability of employees to access HR
services quickly and efficiently through AI is seen as a major advantage.
HR professionals and employees recognize the potential of AI in improving
satisfaction with HR services. HR professionals (83%) agreed that AI would enhance
employee satisfaction by providing quicker access to HR services (mean score of
4.03). Similarly, 60% of employees felt that AI would lead to a better overall HR
experience. However, 20% of employees expressed concerns about AI potentially
reducing personal engagement with HR staff. A percent of 80% of employees
believed AI would increase their ability to manage their own HR-related tasks, such
as updating personal information or checking leave balances. This aligns with HR
professionals’ views that AI could contribute to a more empowered workforce.
8
Despite the fact that AI is widely acknowledged to have the potential to
enhance HR practices, concerns over job displacement remain prevalent, particularly
among employees. Opinions varied more among employees than among HR specialists.
According to our survey, 40% of HR professionals saw AI as a chance to
concentrate on higher-level responsibilities, while only 20% believed it will replace
their current roles. Employees were more worried about losing their jobs, though.
While 50% of workers thought that AI may merely alter the nature of HR work without
resulting in a mass loss of jobs, 40% of workers said it might endanger certain HR
job functions.
To understand the relationship between key variables and provide deeper
insights into the data, we conducted several statistical analyses, including the
calculation of means and correlation coefficients.
Table 1. Means of the studied variable
Variable
HR Professionals
Mean
Employees
Mean
General perception of AI in HR
4.03
3.96
Job enhancement through AI integration
4.26
4.10
Employee empowerment through AI
4.05
4.03
Concerns about job displacement
3.73
3.87
Both employees and HR professionals view AI in HR-related activities
favourably, as shown in Table 1, with HR professionals exhibiting somewhat greater
optimism overall. Although both groups agree that AI has the ability to improve jobs
and give workers more authority, HR experts give job enhancement a higher rating.
However, compared to HR professionals, employees are a little more concerned
about the possibility that AI may replace jobs.
Correlations for the studied variables are presented in Table 2:
Table 2. Correlations among variables
Variable
General
perception
of AI in HR
Job enhancement
through AI
integration
Employee
empowerment
through AI
Concerns
about job
displacement
General perception
of AI in HR
1.00
Job enhancement
through AI integration
0.682
1.00
Employee empowerment
through AI
0.756
0.835
1.00
Concerns about job
displacement
-0.475
-0.563
-0.452
1.00
p<0.05
9
The correlation analysis reveals significant relationships among the variables
related to AI in HR, employee empowerment and job displacement concerns. A
positive correlation was found between the general perception of AI in HR and
empowerment (r = 0.756), indicating that employees who view AI favorably are more
likely to feel empowered in their roles. This finding aligns with research suggesting that
perceived organizational support positively influences employee empowerment and
performance (Kumar, Liu & Jin, 2022). Additionally, employee empowerment through
AI was positively correlated with job enhancement (r = 0.835), suggesting that AI can
improve job performance and satisfaction, enhancing autonomy.
On the other hand, concerns about job displacement showed a negative
correlation with empowerment (r = -0.452), supporting the literature that highlights how
job insecurity can diminish morale and engagement (Jung et al., 2021). The negative
association between displacement concerns and empowerment suggests that while
AI can enhance employees' abilities, fears of job loss may mitigate these benefits.
Based on positive correlation between AI perception and empowerment,
hypothesis 1 is supported. Employees who view AI favorably are more likely to
believe it can enhance their autonomy, thus increasing satisfaction. Also, negative
correlation between displacement concerns and empowerment supports hypothesis
2. Employees who worry about job displacement tend to have lower perceptions of
AI’s empowerment potential. Also, the data supports hypothesis 3, as HR professionals
showed a slightly more favorable view of AI in HR functions, with a higher mean
score for empowerment and job enhancement.
These findings highlight how critical it is to handle both the advantages and
disadvantages of integrating AI in the workplace. To fully realise AI's potential, it is
imperative to reduce workers' concerns about job displacement, even while AI offers
chances for employment enhancement and increased empowerment.
5. Discussions
The findings of this study highlight several key areas where HR managers
can optimize their approach to integrating AI technologies, specifically chatbots, into
HR practices. Based on the analysis, the following recommendations are proposed:
1. The results from our study indicate that while HR professionals generally hold
a positive view of AI technologies (mean score of 4.03 for general perceptions),
employees exhibit a more cautious stance (with 30% remaining neutral). Given this
variance in perspectives, it is advisable for HR managers to implement AI technologies
in stages, allowing employees time to familiarize themselves with the tools and gradually
integrate them into daily practices. This gradual adoption helps mitigate resistance to
change and facilitates smoother transitions. Previous research supports this approach,
emphasizing the importance of providing employees with adequate time and training
to adjust to new technologies (Huang and Rust, 2021).
2. While HR professionals are confident in AI’s potential to automate routine
tasks, employees show more hesitation regarding the efficiency of AI-driven tools (50%
expressed uncertainty about AI’s effectiveness). This discrepancy underscores the
importance of training programs. HR managers should invest in educating both HR
staff and employees on the capabilities and limitations of AI technologies, ensuring
they understand how these tools enhance efficiency without replacing the personal
10
touch necessary for complex HR matters. Some researchers (Rane, Choudhary &
Rane, 2024; Molino, Cortese & Ghislieri, 2020) suggest that comprehensive training
not only enhances technology adoption but also increases trust in AI systems. Also
the literature highlights that if employees lack any skills, these AI systems help them
identify their training needs and complete the required courses (Budhwar, 2022).
3. To bridge the gap in perceptions between HR professionals and employees,
it is crucial for HR managers to maintain transparent communication. Many employees
are still uncertain about how AI will impact their roles, especially concerning job
displacement (mean score of 3.87 for concerns about job displacement). HR managers
should proactively communicate the benefits of AI, addressing concerns and clarifying
that AI will serve as a tool to enhance, rather than replace human roles. Such
transparency has been shown to improve employee engagement and reduce fear of
technology-driven job loss (Biswas & Bhatnagar, 2013).
4. The study reveals that both HR professionals and employees believe AI can
enhance autonomy in HR-related tasks, such as managing leave requests and benefits
(86% of HR professionals and 55% of employees). To capitalize on this, HR
managers should leverage AI tools that empower employees to handle routine HR
tasks independently. This not only increases efficiency but also fosters a sense of
empowerment among employees, aligning with findings from existing studies that
AI-driven autonomy leads to higher job satisfaction and employee engagement
(Davenport & Kirby, 2016).
We consider that by putting these suggestions into practice, HR managers may
minimise the difficulties and unknowns that come with integrating new technology while
successfully utilising AI's potential to improve organisational effectiveness, employee
engagement, and general satisfaction.
6. Conclusions
This paper highlights that AI is significantly reshaping HR practices, particularly
in areas such as job empowerment, employee engagement and job enhancement.
These transformations are expected to accelerate, urging HR professionals to adapt
their strategies to leverage AI effectively.
In light of the research findings, it is crucial for HR managers to focus on
inclusivity, ensuring that employees feel empowered and supported in their interaction
with AI technologies. Engaging employees in discussions about AI’s role in enhancing
their work, rather than replacing it, is key to fostering trust. Managers should involve
employees in shaping AI-driven processes, which could increase trust. This approach
not only promotes a positive organizational culture but also aligns with market trends
toward transparency and collaboration (Huang and Rust, 2021).
Despite the benefits, concerns regarding job displacement and reduced
human interaction remain significant barriers. These concerns must be addressed to
ensure that AI adoption adds sustained value to organizations and aligns with workforce
expectations. Therefore it is crucial for policymakers and businesses to proactively
address this issue to ensure a just transition and minimize the negative effects on
employees, and also to understand the broader effects of AI on HRM.
11
However, as long as businesses adopt this technology, the partnership of
artificial intelligence and human knowledge will become a powerful force that not
only meets demands but also actively shapes the nature of work in the future. The
combination of artificial and human intelligence holds the potential to revolutionise
the workplace by boosting output, innovation and general well-being.
Although the path to an AI-enabled workplace is complicated, it offers a future
in which companies and workers benefit with careful strategic planning and ethical
considerations (Budhwar, 2022). AI supports sustainable business models and
improves HR procedures as it is incorporated more and more into HR operations.
Understanding these dynamics is crucial for creating effective strategies to
manage workforce transitions and ensure that employees have the skills needed to
succeed in an AI-driven environment.
Regarding future perspectives, human resource management should
prepare for the rise of new roles and job functions in HR, such as AI ethics officers,
who will ensure that AI algorithms are applied ethically and fairly. As AI becomes
more integrated into HR processes, these roles will become increasingly important,
and HR professionals must ensure that AI is used efficiently and fairly.
In conclusion, AI plays an essential role in strengthening HRM functions and
activities, providing opportunities for significant advancement in employee management
and organizational efficiency.
References
Agrawal, A., Gans, J., & Goldfarb, A. (2017). What to expect from artificial intelligence.
MIT Sloan Management Review, 58(3), 23-26
Arslan, A., Cooper, C., Khan, Z., Golgeci, I., Ali, I. (2022). Artificial intelligence and
human workers interaction at team level: a conceptual assessment of the
challenges and potential HRM strategies, International Journal of Manpower,
43 (1), 75-88
Bititci, U., Cocca, P., Ates, A. (2016). Impact of visual performance management
systems on the performance management practices of organisations.
International Journal of Production Research, 54(6), 1571–1593
Biswas, S., Bhatnagar, J. (2013), Mediator analysis of employee engagement: role
of perceived organizational support, p-o fit, organizational commitment and
job satisfaction. Vikalpa: The Journal for Decision Makers, 38(1), 27-40
Brougham, D., Haar, J. (2020). Technological disruption and employment: The
influence on job insecurity and turnover intentions: A multi-country study.
Technological Forecasting and Social Change, 161, 120276
Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress,
and Prosperity in a Time of Brilliant Technologies. W. W. Norton & Company
Budhwar, P., Malik, A., De Silva, M. T. T., Thevisuthan, P. (2022). Artificial intelligence
challenges and opportunities for international HRM: a review and research
agenda. The International Journal of Human Resource Management, 33(6),
1065–1097
Castellacci, F., & Viñas-Bardolet, C. (2019). Internet use and job satisfaction. Computers
in Human Behavior, 90, 141152
12
Chowdhury, S., Dey, P., Joel-Edgar, S., Bhattacharya, S., Rodriguez-Espindola, O.,
Abadie, A., & Truong, L. (2023). Unlocking the value of artificial intelligence in
human resource management through AI capability framework. Human
Resource Management Review, 33(1)
Davenport, T.H., Kirby, J. (2016), Winners and Losers in the Age of Smart Machines,
MIT Sloan Management Review; Cambridge, 57( 3), 21-25
Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: Test
of a theory. Organizational Behavior and Human Performance, 16(2), 250279
Huang, M.-H., Rust, R., T. (2021), A Framework for Collaborative Artificial Intelligence
in Marketing, Journal of Retailing, 98(2), 209-223
Huang, M. H., & Rust, R. T. (2018). Artificial intelligence in service. Journal of Service
Research, 21(2), 155172
Jung, H., S., Jung, Y., S., Yoon, H., H. (2021), COVID-19: The effects of job insecurity
on the job engagement and turnover intent of deluxe hotel employees and the
moderating role of generational characteristics, International Journal of
Hospitality Management, Volume 92
Kaur, M. and Gandolfi, F. (2023), Artificial Intelligence in Human Resource
Management - Challenges and Future Research Recommendations, Review
of International Comparative Management, Volume 24, Issue 3
Khan, A. I., Shahzad, F., & Afzal, M. K. (2020). Role of AI and big data analytics in
human resource management. Journal of Open Innovation: Technology,
Market, and Complexity, 6(2)
Kumar, N., Liu, Z., Jin, Y. (2022), Evaluation of Employee Empowerment on Taking
Charge Behaviour: An Application of Perceived Organizational Support as a
Moderator, Psychology Research and Behavior Management, 15, 1055-1066
Li, J. J., Bonn, M. A., & Ye, B. H. (2019). Hotel employee’s artificial intelligence and
robotics awareness and its impact on turnover intention: The moderating roles
of perceived organisational support and competitive psychological climate.
Tourism Management, 73, 172181
Makridis, and Han Hun, (2021), Future of work and employee empowerment and
satisfaction: Evidence from a decade of technological change, Technological
Forecasting & Social Change, 173
Malik, A., Srikanth, N. R., Budhwar, P. (2020). Digitisation, artificial intelligence (AI)
and HRM. In J. Crawshaw, P. Budhwar, & A Davis (Eds.), Human resource
management: Strategic and international perspectives (pp. 88111), Sage
Molino, M., Cortese, C. G., & Ghislieri, C. (2020). The promotion of technology
acceptance and work engagement in industry 4.0: from personal resources to
information and training, International Journal of Environmental Research and
Public Health, 17(7), 2438
Nawaz, N., & Gomes, A. M. (2019). Artificial Intelligence Chatbots are New Recruiters,
International Journal of Advanced Computer Science and Applications, Vol.
10, No. 9
Nguyen, T. M., & Malik, A. (2022). ‘Impact of knowledge sharing on employees’
service quality: The moderating role of artificial intelligence. International
Marketing Review, ahead-of-print
13
Pan, Y., Froese, F., Liu, N., Hu, Y., & Ye, M. (2022). The adoption of artificial
intelligence in employee recruitment: The influence of contextual factors. The
International Journal of Human Resource Management, 33(6), 1125-1147
Prentice, C., & Nguyen, M. (2020). Engaging and retaining customers with AI and
employee service. Journal of Retailing and Consumer Services, 56, 102186
Rane, N., Choudhary, S. P., Rane, J. (2024). Acceptance of artificial intelligence: key
factors, challenges, and implementation strategies. Journal of Applied Artificial
Intelligence, 5(2), pp. 5070
Sakka, F., El Maknouzi, M. E. H., & Sadok, H. (2022). Human Resource Management
in The Era of Artificial Intelligence: Future HR Work Practices, Anticipated Skill
Set, Financial and Legal Implications. Academy of Strategic Management
Journal, 21, 1-14
Seibert, S.E., Wang, G., Courtright, S.H, 2011. Antecedents and consequences of
psychological and team empowerment in organizations: a meta-analytic
review. J. Appl. Psychol. 96 (5), 9811003
Tarafdar, M., Beath, C. M., & Ross, J. W. (2019). Using AI to enhance business
operations. MIT Sloan Management Review, 60(4), 37–44
Zhang, X., Bartol, K.M, 2010. Linking empowering leadership and employee creativity:
the influence of psychological empowerment, intrinsic motivation, and creative
process engagement. Acad. Manag. J. 53 (1), 107128
Wirtz, J. (2019). Organisational ambidexterity: Cost-effective service excellence,
servrobots, and artificial intelligence. Organizational Dynamics, 49(3), 1–9
... These changes are reshaping the traditional AI-employee dynamic and require new approaches to work-life balance, job roles, and collaboration. Considering all these aspects, we found it helpful to explore the use of Al and chatbots and their impact on jobs (Petre et al., 2024). ...
Article
This nonexperimental survey-based online quantitative study was conducted to explore how an independent variable, human tasks, affects the dependent variable, AL Models percentage of tasks within the job role influenced by artificial intelligence (AI). The Technology Acceptance Model (TAM) theoretical framework is used to understand and predict dependent variable Al Models, which refers to the degree to which Artificial Intelligence AI will transform daily tasks. The study addresses the existing research gap by exploring areas that have not been sufficiently investigated and understood to improve human tasks and effectively fill a knowledge gap regarding the dynamics of human tasks that AI influences. AI Models in this study are impacted by how human tasks are integrated, representing AI's influence on the job. Different AI Models that include machine learning algorithms, deep learning, or rule-based systems may vary and be influenced by Human Tasks. In the online survey, participants were chosen from nearly every industry that has used AI systems to help with task automation and workload distribution, which makes them perfect subjects for assessing how beneficial and effective people think of Artificial Intelligence in practical situations.
Article
Full-text available
This research paper investigates the key factors influencing AI acceptance, focusing on elements such as technological readiness, perceived usefulness, and ease of use, along with the organizational and societal impacts. It identifies the significant obstacles to AI adoption, including ethical concerns, data privacy issues, and the potential for job displacement. The study also explores the importance of trust and transparency in promoting AI acceptance, highlighting the necessity for explainable AI (XAI) to build user confidence. Strategies for enhancing AI acceptance are examined, emphasizing the need for robust regulatory frameworks, ongoing education, and skill development to mitigate resistance and boost user engagement. The research stresses the importance of a user-centric approach in AI system design and implementation, taking into account end-user needs and concerns. Additionally, it underscores the value of collaboration between industry, academia, and policymakers in fostering an environment conducive to AI innovation and acceptance. By offering a thorough analysis of the factors affecting AI acceptance and the associated challenges, this paper provides valuable insights and actionable strategies for stakeholders aiming to navigate the complex landscape of AI integration effectively.
Article
Full-text available
Digital innovation continues to fuel business transformation. Organizations have realigned their strategic direction on enhanced adoption of digital technologies to leverage the opportunities provided by the new age technologies, especially Artificial Intelligence. Enterprises can leverage strategic advantage in talent-a key differentiator-by adopting Artificial Intelligence in Human Resource Management. More than ever now, Human Resources function now regarded as a trusted advisor, helping the organizations get through the transformational phase created by disruptive technologies. This research provides insights on how Human Resources function has evolved as a strategic partner by deployment of AI related technological advancements related, as it contributes to building organizational capabilities and making organization competitive, thus creating organizations that win in the market. It also looks at the challenges faced in Human Resource Management by deployment of Artificial Intelligence. Insights are shared on future directions of potential research that can be conducted in this field.
Article
Full-text available
Purpose Based on trait activation theory, this study validates the boundary effect of perceived organizational support (POS) on employee empowerment (EE) to sustain employee’s taking charge behaviour (TCB). It hypothesizes that EE has a strongly significant and positive relationship with TCB when POS is high. Methodology The authors selected a time-lagged cross-sectional study and collected data from two sources in manufacturing firms in China where 290 team members and 56 supervisors participated in the survey. In a questionnaire, team members self-reported employee empowerment, taking charge behaviour, and perceived organizational support, whereas supervisors rated employees’ taking charge behaviour at individual-level to avoid common method bias. In addition, for meeting the study objectives statistically, we used SPSS-Process Macro for hypotheses testing. Findings The study findings were significant, in which employee empowerment demonstrated positive relationship with TCB under the boundary condition of POS but under low POS. This empirical result endorses that employee empowerment accelerated by perceptions of low organizational support demonstrates a positive impact on the development of taking charge behaviour. Practical Implications Receivers’ reactions to organizational support are not constantly positive; sometimes, they might feel vulnerable or incapable, and sometimes “overhelped”. Our study outcomes extend these streams of work by concentrating on support from the organization and authenticating an exclusive outline associating employee empowerment with perceived organizational support on employee’s taking charge behaviour- specifically organizations might, rather counterintuitively, attain greater levels of empowered employee’s taking charge behaviour by delivering less is more-oriented organizational support programs. More specifically, it is not always high, but sometimes low POS performs as a resilient situational factor or contextual moderator that is capable of activating and encouraging employee empowerment on their taking charge behaviour. Originality/Value This study highlights the importance of taking charge as trait-relevant behaviour by empowered employees (a trait in our case) and organizational support as a trait-relevant cue for sustainable performance in the manufacturing industry of China.
Chapter
The relationship between management and digital technology: experts present a new agenda for the practice of management. Digital technology has profoundly affected the ways that businesses design and produce goods, manage internal communication, and connect with customers. But the next phase of the digital revolution raises a new set of questions about the relationship between technology and the practice of management. Managers in the digital era must consider how big data can inform hiring decisions, whether new communication technologies are empowering workers or unleashing organizational chaos, what role algorithms will play in corporate strategy, and even how to give performance feedback to a robot. This collection of short, pithy essays from MIT Sloan Management Review, written by both practitioners and academic experts, explores technology's foundational impact on management. Much of the conversation around these topics centers on the evolving relationship between humans and cognitive technologies, and the essays reflect this—considering, for example, not only how to manage a bot but how cognitive systems will enhance business decision making, how AI delivers value, and the ethics of algorithms. ContributorsAjay Agrawal, Robert D. Austin, David H. Autor, Andrew Burgert, Paul R. Daugherty, Thomas H. Davenport, R. Edward Freeman, Joshua S. Gans, Avi Goldfarb, Lynda Gratton, Reid Hoffman, Bala Iyer, Gerald C. Kane, Frieda Klotz, Rita Gunther McGrath, Paul Michelman, Andrew W. Moore, Nicola Morini-Bianzino, Tim O'Reilly, Bidhan L. Parmar, Ginni Rometty, Bernd Schmitt, Alex Tapscott, Don Tapscott, Monideepa Tarafdar, Catherine J. Turco, George Westerman, H. James Wilson, Andrew S. Winston
Chapter
A clear-eyed look at how AI can complement (rather than eliminate) human jobs, with real-world examples from companies that range from Netflix to Walmart. Descriptions of AI's possible effects on businesses and their employees cycle between utopian hype and alarmist doomsaying. This book from MIT Sloan Management Review avoids both these extremes, providing instead a clear-eyed look at how AI can complement (rather than eliminate) human jobs, with real-world examples from companies that range from Netflix to Walmart. The contributors show that organizations can create business value with AI by cooperating with it rather than relinquishing control to it. The smartest companies know that they don't need AI that mimics humans because they already have access to resources with human capability—actual humans. The book acknowledges the prominent role of such leading technology companies as Facebook, Apple, Amazon, Netflix, and Google in applying AI to their businesses, but it goes beyond the FAANG cohort to look at AI applications in many nontechnology companies, including DHL and Fidelity. The chapters address such topics as retraining workers (who may be more ready for change than their companies are); the importance of motivated and knowledgeable leaders; the danger that AI will entrench less-than-ideal legacy processes; ways that AI could promote gender equality and diversity; AI and the global loneliness epidemic; and the benefits of robot–human collaboration. Contributors Cynthia M. Beath, Megan Beck, Joe Biron, Erik Brynjolfsson, Jacques Bughin, Rumman Chowdhury, Paul R. Daugherty, Thomas H. Davenport, Chris DeBrusk, Berkeley J. Dietvorst, Janet Foutty, James R. Freeland, R. Edward Freeman, Julian Friedland, Lynda Gratton, Francis Hintermann, Vivek Katyal, David Kiron, Frieda Klotz, Jonathan Lang, Barry Libert, Paul Michelman, Daniel Rock, Sam Ransbotham, Jeanne W. Ross, Eva Sage-Gavin, Chad Syverson, Monideepa Tarafdar, Gregory Unruh, Madhu Vazirani, H. James Wilson
Article
Artificial Intelligence (AI) is increasingly adopted within Human Resource management (HRM) due to its potential to create value for consumers, employees, and organisations. However, recent studies have found that organisations are yet to experience the anticipated benefits from AI adoption, despite investing time, effort, and resources. The existing studies in HRM have examined the applications of AI, anticipated benefits, and its impact on human workforce and organisations. The aim of this paper is to systematically review the multi-disciplinary literature stemming from International Business, Information Management, Operations Management, General Management and HRM to provide a comprehensive and objective understanding of the organisational resources required to develop AI capability in HRM. Our findings show that organisations need to look beyond technical resources, and put their emphasis on developing non-technical ones such as human skills and competencies, leadership, team co-ordination, organisational culture and innovation mindset, governance strategy, and AI-employee integration strategies, to benefit from AI adoption. Based on these findings, we contribute five research propositions to advance AI scholarship in HRM. Theoretically, we identify the organisational resources necessary to achieve business benefits by proposing the AI capability framework, integrating resource-based view and knowledge-based view theories. From a practitioner’s standpoint, our framework offers a systematic way for the managers to objectively self-assess organisational readiness and develop strategies to adopt and implement AI-enabled practices and processes in HRM.
Article
Artificial intelligence (AI) and other AI-based applications are being integrated into firms’ human resource management (HRM) approaches for managing people in domestic and international organisations. The last decade has seen a growth in AI-based applications proliferating the HRM function, triggering an exciting new stream of research on topics such as the social presence of AI and robotics, effects of AI adoption on individual and business level outcomes, and evaluating AI-enabled HRM practices. Adopting these technologies has resulted in how work is organised in local and international firms, noting opportunities for employees and firms’ resource utilisation, decision-making, and problem-solving. However, despite a growing interest in scholarship, research on AI-based technologies for HRM is limited and fragmented. Further research is needed that analyses the role of AI-assisted applications in HRM functions and human-AI interactions in large multinational enterprises diffusing such innovations. In response to these combined issues—the fragmented nature of research and limited extant literature, we present a systematic review on the theme of this special issue and offer a nuanced understating of what is known, yet to be known, and future research directions to frame a future research agenda for international HRM. We develop a conceptual framework that integrates research on AI applications in HRM and offers a cohesive base for future research endeavours. We also develop a set of testable propositions that serve as directions for future research.
Article
Purpose A growing number of international travellers have influenced how hotels manage their customer satisfaction reviews and ratings. This study examines the influence of knowledge sharing on employee service quality and customer satisfaction in the hotel industry. Another purpose of this study is to investigate the moderating effect of artificial intelligence (AI) system quality on the relationship between knowledge sharing on employee service quality and customer satisfaction. Design/methodology/approach The research design was developed using the positivism approach and quantitative method. Data were collected via a self-administered survey from Vietnamese hotels that used AI systems in employees' work tasks. Three hundred and fifty pairs of questionnaires for frontline employees and customers were collected and used for the data analysis. Structural equation modelling was accessed to examine the framework model. Findings This research shows that the increase of knowledge sharing behaviours significantly influenced customer perceptions of employees' service quality. Furthermore, employee service quality positively affected customer satisfaction. An indirect impact of knowledge sharing on customer satisfaction via employee service quality was found. AI system quality moderated the effect of knowledge sharing on employee service quality whereby the higher the AI system quality, the stronger the impact of knowledge sharing on employee service quality. Therefore, a moderated mediation of employee service quality was found in examining the relationship between knowledge sharing and customer satisfaction. Research limitations/implications This study's findings direct hotel knowledge management and marketing strategies to attract international customers. The study provides hotel managers with directions to increase customer satisfaction to create a competitive advantage in international marketing strategies. Originality/value This study's distinctive contribution lies in examining the phenomenon of employee service quality at the intersection of knowledge sharing and customer satisfaction and the use of AI systems from an emerging market context. Furthermore, the moderation role of AI quality has rarely been explored.
Article
Increasing evidence suggests that technological change will significantly affect interactions in the workplace. Even if technological change displaces some jobs, it may have positive effects among the employees’ who remain employed and subsequent new hires. We introduce a new measure of technological change at the county-level using the growth in the stock of intellectual property (IP) across industries. Using new individual-level data between 2008 and 2018 from Gallup, we quantify the effects of technological change on employee empowerment and well-being. Our results suggest that technological change is associated with positive effects on employee empowerment and life satisfaction. The results are strongest in workplaces with trust and more directive managers, suggesting that structured management may be help mediate the emergence of AI and automation.