Artificial Intelligence in Human Resource Man-Agement

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International Journal of Pure and Applied Mathematics

Volume 119 No. 17 2018, 1891-1895


ISSN: 1314-3395 (on-line version)
url: http://www.acadpubl.eu/hub/
Special Issue
http://www.acadpubl.eu/hub/
Artificial Intelligence in Human Resource Man-
agement
Ruby Merlin.P1, Jayam.R2
1
1Faculty of Management Studies,
Dr.M.G.R. Educational & Research Institute University,
Maduravoyal, Chennai 600 095, India.
rubypushparaj@gmail.com
2
Department of Commerce,
Dr.M.G.R. Educational & Research Institute University,
Maduravoyal, Chennai 600 095, India.
drrjayam@gmail.com

Abstract— In general Human resource managers widely have a perception that Artificial intel-
ligence systems will replace Human Resource managers shortly but in reality Artificial intelli-
gence does simplifies their job by automating repeated tasks and providing valuable insights
without any cognitive biases. This paper tries to addresses the possibilities of how Artificial
intelligence is transforming and supporting the Human Resource functions like recruitment,
training, talent management & retention through real time examples, Gives insights on inter-
section of Artificial intelligence & Human resource management cases and finally it address the
future impact on the HR workforce.
Key words: Artificial Intelligence, Human resource, AI, Recruitment, Training, performance man-
agement, Retention

I. INTRODUCTION
Next generation digital technologies like machine learning (ML) and artificial intelligence (AI)
are creating a new wave of transformation in Business. In particular, IDC predicts artificial intelli-
gence to grow from $8 billion in 2016 to $47 billion by 2020 changing the face of business practices
almost in every industry and niches (Framingham and Mass 2016). Though the concept of artificial
intelligence is more than a decade old, recent explosion in AI due to huge funding/financial backing
by giants like Google, Facebook. And Businesses have already started to explore and implement AI
to gain a competitive edge. One such early adopter is Uber, producing world’s first cargo shipment
controlled by AI.
Ground- breaking technologies like ML and AI is being applied across all sectors in business. Of
all the areas of business, Human resource and recruitment are the one area in which AI will benefit
businesses across all sectors. The impact of AI on HR right from hiring decision, predicting perfor-
mance, automation of task that require manual actions, has a growing pressure on HR leaders on
how best to prepare organization ahead with strategic and actionable insights.
The absolute potential in AI has launched many tech star-up in this field. Newly emerged tech
start-up like Knockri in Canada providing AI-based HRspecific solution. Knockri aims to help
every recruiting team in the world to find the right applicant by assessing their personality traits by
analyzing audio and video to gauge how to fit a candidate based on employer requirement. This me-
thod of screening will help in a better decision on finding the right candidate. The same done by
humans would have been difficult as the decision tend to be biased and time-consuming. HR profes-
sionals state that the AI attributes such as saving employers and employees an immense amount of
time and energy, eliminating human biases, enforcing complete transparency, automation of self-
regulated process are the few reasons on why the power of AI is game-changing for Human resource
management. AI not only is expected to simplify the nerve-racking task of employers and em-
ployees but advanced AI tool is expected to predict on spot employee performance. This papers re-
views on how AI will impact HR and drive changes on how we work. On the other end how compa-
nies can create a competitive edge using this high potential technology while maintaining a personal
connection with employees and customers.

II. AI RESURGENCE
Though AI concept has been around for a long time, many researchers believe that now is the
right time to make AI a reality. The drivers that caused resurgence of AI with such rapid leaps
recently are growth in Big data-availability of abundance of data and is doubling every 2 years
(IDC 2014), cloud computing has democratised access to massive computation and necessary
hardware platform to run AI at cheap cost, new developmental tools and open source technolo-

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International Journal of Pure and Applied Mathematics Special Issue

gies had helped AI to scale to large and distributed data sets , increasing awareness and expec-
tation of apps to be intelligent has made investors and large companies invest heavily in AI. Re-
sulting in a financial boost for AI development than ever before. Though the cycle of promises
leading to investment happened before, a study by Horace (2014) shows that AI is not in anoth-
er hype cycle as every technology in recent years has boomed within a short period. Chart
clearly explains that after internet era the adoption of technology is fast and steep. Disruptive
technology is being adopted min of 50% in less than ten years. We are already using AI in our
day-to-day life but most of us of unaware of the technology behind it. All the suggestions and
prediction we get on our smartphone without being asked for is AI technology. In next few

years, AI is expected to grow by leaps and bounds across businesses.


Source: Asymco

III. THE INTERSECTION OF ARTIFICIAL INTELLIGENCE AND HUMAN RESOURCE


HR departments are always challenged with an overwhelming task that is extremely time and
energy consuming, right from finding the right candidate to onboard, managing payroll, benefits to
off-boarding an employee. Technology can accomplish many of those cumbersome tasks faster,
cheaper and better than before.
HR professionals have started to realize the advantages of a data-driven decision. Data-driven
technology such an Artificial intelligence is all about analysing the huge pile of data to predicting
trends and provide suggestions in a humanized format. AI using workforce data will help HR profes-
sional to better understand their workforce and to foresee problems and trends in advance. AI tools
will solve all the cumbersome of manual analysis and time-consuming task in HR and thus enable
workforce to work on a more productive task. AI will also help HR executives to formulate and im-
plement strategies effectively. Further, using historical data and predictive analytics AI can provide
insight to HR on best practices, associated problems and impactful actions to grab the opportunity.
HR professionals are organizational focused and said to be biased in many activities. The em-
ployees often feel HR activity and strategies favor more to the organization than employees. This
biased nature of HR is prevailing in every HR activity. This major issue will be swiped out by AI
will provide a more transparent workplace that would breed happy employees free from biased deci-
sions. AI will turn the HR function into more of people oriented.

IV. AI THE NEW RACE OF WORKFORCE


AI is leading us to an era of extensive automation and these disruptive technologies alleviates fear
among people of losing jobs resulting of automation. Fear is inherently human and also the concern
about automation aren't new. Americans have been fearing of losing job due to automation for dec-
ades. (Michael 2017). In Agriculture, automated machinery has brought down the percentage work-

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International Journal of Pure and Applied Mathematics Special Issue

ers to 2% from 41% in 100 years ( Autor 2015). History also teaches us that, Automating 98% of
work of weavers in textile industry has only increased number of workers. This was due to price
drop in products due to automation increased demand and ultimately resulted in greater need for
textile worker but with different skill set.(James 2015). In recent years when ATM was introduced in
1970’s every bankroller feared that its a end for their career though their was a fall in number of
teller in every bank. ATM made banks profitable by reduced the operating cost, demand increased,
new branches were opened, which ultimately resulted in need to hire more tellers. Employment of
teller rose by 50000 between he period of 1980-2010(Autor 2015). But the job also evolved from
dispensing cash to selling bank products. History taught us that Automation has revolutionised in-
dustry by promoting growth on a bigger scale and increased job opportunities. Hence we need not
fear AI but embrace it and evolve with the change.

V. FUNCTION OF HR IN THE WORLD OF AI


A. Recruitment
AI will streamline or automate, monotonous and high-volume task in recruiting process. Stream-
ing resumes from a large applicant pool to find right candidate within a limited time is a challenging
job every HR managers. AI softwares will scan, evaluate and reject 75% of resumes that are unquali-
fied (Martin 2017). Intelligent screening software powered by AI will screen resume, it will learn
employee experience and skill, analyse their performance and turnover rates and shortlist the strong-
est candidate. Digital interview AI software the assess candidate speech, word choice and body lan-
guage through video and audio and analyse the personality trait will fit the job. AI also helps to im-
prove candidate experience through chat bots by providing consistent update of requirement, feed-
back and suggestions. Over the years KPI has become essential for quality hire. Artificial intelli-
gence will help recruiters to find the perfect match based on KPI by using available HR data of em-
ployees performance, experience, knowledge and skills.
B. Training
The abilities and capacities we require at work are continually evolving. We now have merchant
programming that can shrewdly suggest videos or learning programs in light of your job , experience
and companions. These software automatically read documentation and make micro-learning pro-
grams, and even frameworks that read and decipher a worker's written work or activities to suggest
learning choices. AI softwares will provide more of personalised/individualized learning based on
learning style e.g. turning written document into visauls. It could accumulate data about employee
engagement or failures inside the program, and consequently test new varieties to attempt and tackle
the issue on its own.An A.I. program could all the more adequately measure employee engagement
and wisely contrast their outcomes with a control population to find out whether the program re-
sulted in some learning among employees.
C. Performance Management
Evaluating performance has been put down to challenges caused by work environment biases and
AI will eradicate biases with permanent feedback. The ai-driven assessment may occur continuously
with checking objectives and a joint effort between the employees. The reward for good work will
be given quicker or employers can provide challenges task if the group doesn't perform well. For
instance, BetterWorks utilizes AI for making a guide with the associations inside a workforce:
shared purposes and targets. By obtaining data, such as, levels of employee engagement, work ful-
fillment, performance data, and understanding about the purposes behind worker turnover, AI may
predict performance indicators of excelling employees, people who tend to leave a job position, de-
partment that can show great results.

D.Retention
As much as it is hard to recruit talented workers, it is as hard to keep them in the group.According
to Omer and Michael ( 2015) 57% of organizations consider employee retention their most serious
issue. Be that as it may, AI can break down and foresee the requirements of every individual em-
ployee. It can decide individual affinities and uncover who ought to get a raise or and who are disap-
pointed with the work-life balance. This offers space to HR experts to be proactive and take care of
the issue even before it really happens

VI. CONCLUSION
Machine learning has made some gigantic strides in last few years on account of certain innova-
tive advances. We use AI everywhere nowadays – from smartphones to flight controls and space

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International Journal of Pure and Applied Mathematics Special Issue

operations. It additionally empowers HR practitioners to enhance results and screen workers more
efficiently but it is safe to say that we have yet to see its full impact on the world of business and HR
specifically. The success strategy to be adopted for effective implementation of AI to gain the com-
petitive edge is by leverage AI in sourcing and early screening, Learn about the existing and emerg-
ing AI tool and prepare the organisation accordingly, Upskill or resell employees slowly to adapt to
the automation easily, Give importance to AI tool that improves employees engagement and expe-
rience. An organization who hesitate to adopt first should follow AI closely and learn whats coming
ahead and not to oppose and restrict it immediately.The future of HR will most probably involve a
human-machine collaboration and that can end up being a good thing.

REFERENCES
[1] Framingham & Mass, 2016. Worldwide Cognitive Systems and Artificial Intelligence Revenues
Forecast to Surge Past $47 Billion in 2020, According to New IDC Spending Guide. IDC. Available
at: https://www.idc.com/getdoc.jsp?containerId=prUS41878616.[Accessed December 26, 2017].

[2] DC. 2014. Data Growth, Business Opportunities, and the IT Imperatives. [ONLINE] Available
at: https://www.emc.com/leadership/digital-universe/2014iview/executive-summary.htm. [Accessed
27 December 2017].

[3] Asymco/Horace. 2014. The Innovator’s Stopwatch. Part 1. [ONLINE] Available at:
http://www.asymco.com/2014/12/10/the-innovators-stopwatch-part-1/. [Accessed 27 December
2017].
ASYMCO(2991?)

[4] Michael. 2017. Hicks: Planning for automation's effects on workers. [ONLINE] Available at:
https://www.usatoday.com/story/money/business/2017/03/12/hicks-planning-automations-
effects-workers/98451684/. [Accessed 27 December 2017].

[5] Autor, H, 2015. Why Are There Still So Many Jobs? The History and Future of Workplace Auto-
mation. Journal of Economic Perspectives, [Online]. Vol.29, no.3, pp. 3-30. Available at:
https://economics.mit.edu/files/11563 [Accessed 28 December 2017].

[6] James. 2015. How Computer Automation Affects Occupations: Technology, jobs, and skills. [ON-
LINE] Available at: http://www.bu.edu/law/files/2015/11/NewTech-2.pdf. [Accessed 28 December
2017].

[7] Martin. 2014. 25 Fun Facts About Resumes, Interviews & Social Recruitment Read more at
https://www.business2community.com/human-resources/25-fun-facts-resumes-interviews-social-
recruitment-0975676. [ONLINE] Available at: https://www.business2community.com/human-
resources/25-fun-facts-resumes-interviews-social-recruitment-0975676. [Accessed 26 December
2017].

[8] Omer, Michael. 2015. Employee Engagement : Paving the way to Happy Customers. [ONLINE]
Available at: http://deliberatepractice.com.au/wp-content/uploads/2015/09/customer-employee-
engagement.pdf. [Accessed 26 December 2017].

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