The Impact of Artificial Intelligence (AI) on the Future of Human Resource Management (HRM)
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Introduction:
Human Resource Management has come a long way since its inception in the early 20th century. Over the years, Strategic Human Resources Management has developed to meet modern workplace demands, from scientific management to workforce planning. The pandemic has completely changed the perception that employees must be in the workplace or travel to meet in person. We expect to see an even more dramatic, revolutionary impact in the business environment and Human Resource Management from Artificial Intelligence (AI) and technological advancements soon. Undoubtedly, it’ll be significantly different from what it is today. This article will discuss revolutionising Human Resource Management's (HRM) future with Artificial Intelligence (AI).
What Is Human Resource Management (HRM)?
Several great researchers have defined human resource management (HRM) in various ways. Its fundamental concept is concerned with how to manage people or employees inside an organisation.
A strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations’ (Armstrong, 2014)
The Evolution of Human Resource Management (HRM)
Human resource management (HRM) dates back to the early 1900s when Frederick Taylor developed scientific management. This strategy aimed to boost production by standardising processes and procedures. As a result, Human Resource Management operations such 'as job analysis, recruitment, and training have emerged.
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| Figure 1: The evolution of human resource management (HRDictionary, 2012). Image source: HR Dictionary Blog |
The Pandemic Has Expanded The Use of Technology
“HR teams are inventing new ways to work, new models for jobs, new ways to learn, and new ways to pay, incent and reward people” (Bersin, 2020).
The COVID-19 pandemic caused confusion and uncertainty for both employers and employees. Human Resource Management was in crisis mode for most of 2020 and the first half of 2021. Human resource specialists were trying to figure out how to let workers work from home, give better mental and physical health care, and keep their businesses running. As businesses get used to a new normal and start using more technology to do their work.
What Is Artificial Intelligence?
Artificial intelligence (AI) refers to the development of computer systems that can perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation. (Russell, Norvig, 2010).
"The future of HR is AI-driven, as businesses continue to realize the benefits of AI-powered tools to automate HR processes and provide data-driven insights to support HR decision-making." (Laloux, 2020).
The Rise of Artificial Intelligence
We have always been interested in technology and science fiction and have lived through the most significant technological changes in history. Artificial Intelligence (AI) is the technology of the future. Artificial Intelligence (AI) and machine learning innovations are being created worldwide. Artificial intelligence (AI) is pushing forward new technologies such as robotics, big data, and the Internet of Things (IoT), which affect every industry and every person.
Given its growth rate, it will continue to be a technological innovator. As a result, qualified professionals have numerous career options. These technologies will have an increasing impact on society and the quality of life.
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| Figure 2: Total economic impact of Artificial intelligence (AI) in the period to 2030 (PricewaterhouseCoopers, 2017). source: www.pwc.com |
Figure 2 shows how much Artificial intelligence (AI) might affect the world and how much value is at stake. Artificial intelligence (AI) could add $15.7 trillion to the global economy by 2030, more than China and India combined. Productivity-side effects will provide $6.6 trillion, and consumption-side effects $9.1 trillion.
What Makes AI Technology So Useful in Human Resource Management?
Artificial intelligence offers several critical benefits that make it significant, such as:
- Automation: Artificial intelligence (AI) can automate complex processes and tasks without causing any burnout
- Enhancement: Artificial intelligence (AI) can improve all products and services for users and suggest better products
- Analysis and Accuracy: Artificial intelligence (AI) is faster and more accurate than humans. Artificial Intelligence (AI) can make better data interpretation decisions.
Simply put, AI accelerates the development of products and business processes by helping organisations make better decisions. Areas that will impact the future of Human Resource Management (HRM) with Artificial Intelligence (AI) technologies.
- Talent Acquisition
The increasing use of Artificial Intelligence (AI) and automation could significantly impact HRM practices. Artificial Intelligence (AI) can speed up recruiting and selection by automating resume screening and candidate matching processes.
Artificial Intelligence (AI) is not affected by stereotypes or how a job applicant's race, gender, or ethnicity can change the results of a background check. The AI software can develop relevant interview questions that have nothing to do with a person's past and instead focus on their professional skills for a specific job.
"These assessment questions will be based on the applicant's earlier work records and, even more importantly, on the job requirements they apply for" (Nunn, 2018). - Employee Engagement and Decision-Making Based on Data Analysis
AI can also examine employee data to spot trends and patterns in retention, engagement, and performance. For example, human resource management experts may use predictive analytics to find employees likely to leave the company and devise ways to keep them. - Performance Management
Some parts of the performance management process, like setting goals and giving feedback, could be automated with the help of AI-powered tools in the Human Resource Management department. This could make performance management a formal part of the organization and ensure all employees are evaluated fairly. - Training and Development
Human Resource Management (HRM) can use machine learning algorithms to examine employee data and find skill gaps. This could help people who work in Human Resource Management make training and development programs that are better suited to the needs of each employee.
Artificial Intelligence (AI) has changed the learning and development industry by making training methods more effective and helping people rethink their work. Here are a few examples (Mohd, 2022). - Knowing the Gaps in Learning
Identifying knowledge gaps helps companies teach more efficiently and affordably. AI finds knowledge gaps in big data. Learner profiles can increase learning and teach employees new skills using this data. Giving everyone the same training wastes time if some employees already know the topic. - Personal Learning Styles
People learn and remember differently across sectors. Artificial Intelligence (AI) in training courses can accommodate employee learning styles. AI-powered training personalises adaptive learning, which saves time.
Artificial intelligence (AI) in learning and development lets employees organise their tailored learning material, set goals, and learn according to their learning styles. They can learn customised content at their own speed and fulfill organisational standards.
AI learning platforms that save employees' learning materials and preferences can also offer training on demand. This learning platform lets managers track employee progress. - Using the Knowledge
Modern corporate learners spend millions on training programmes while employees spend little time studying. AI-powered learning and development solutions boost engagement and learning. Personalising employee training improves completion and retention. - 24/7 Assistance
Workers who learn online frequently have questions. Chatbot-powered AI technology can deliver rapid answers during staff training. The employee does not have to wait for the trainer to answer questions before moving on with the training. - Instant Feedback
Answer sheets may be checked, performance can be measured and analysed, and extra data can be collected for the person using artificial intelligence (AI) learning and development tools with quick result analysis. The artificial intelligence (AI) tool may look at tests and give a custom assessment based on the learner's skills and ability to learn deeply. Throughput is increased, and human error is removed. - Getting the Insights
When using artificial intelligence (AI) for learning and development, users can access their learning management system (LMS) data. This data can be used to get feedback on employee performance with the help of more analytics, which can give various insights into the enterprise's learning and development efforts. These details can be used to find patterns, determine how effective the learning content is, make suggestions for improvements, and determine how the employees learn best.
Conclusion
How will Artificial Intelligence (AI) impact future Resource Management (HRM) and talent acquisition?
Please share your ideas in the comments section.
Armstrong, M. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Bersin, J. (2020). The Big Reset: Making Sense of the Future of Work. Forbes. [online] Available from: https://www.forbes.com/sites/joshbersin/2020/05/20/the-big-reset-making-sense-of-the-future-of-work/?sh=3389e7f51d2e [Accessed on 26 March 2023].
Harbert, T. (2021). The Pandemic Has Expanded the Role of HR, SHRM. Available [online] from:https://www.shrm.org/hr-today/news/hr-magazine/fall2021/pages/pandemic-expands-role-of-hr.aspx [Accessed on 26 March 2023].
HRDictionary. (2012) Evolution of Human Resource Management [online] Available from: https://hrdictionaryblog.com/2012/10/28/evolution-of-human-resource-management/ [Accessed on 25 March 2023].
Laloux, F. (2020). How Artificial Intelligence is Transforming HR. Forbes. [online] Available from: https://www.forbes.com/sites/fredericlaloux/2020/08/04/how-artificial-intelligence-is-transforming-hr/?sh=60e34d791b0c [Accessed on 26 March 2023].
Mohd, A. (2022). The Impact of AI in Learning and Development. MadCap Software. [online] Available from: https://www.madcapsoftware.com/blog/the-impact-of-ai-in-learning-and-development/ [Accessed on 26 March 2023].
Nunn, J. (2018) Council Post: How AI Is Transforming HR Departments, Forbes. [online] Available from: https://www.forbes.com/sites/forbestechcouncil/2018/05/09/how-ai-is-transforming-hr-departments/?sh=6963b2241c0f [Accessed on 26 March 2023].
PricewaterhouseCoopers, (2017) PwC Global Artificial Intelligence Study: Sizing the prize, PwC. [online] Available from: https://www.pwc.com/gx/en/issues/data-and-analytics/publications/artificial-intelligence-study.htm [Accessed on 27 March 2023].
Russell, S. J., & Norvig, P. (2010). Artificial intelligence: A modern approach (3rd ed.). Prentice Hall.
Artificial inteligent is currently rapidly growing technology. It plays a significant change in digital world. It mostly appearing in online learning phase. It reduce the time and effort of individuals specially who work related to computer programming and networking. Also it implemented in manufacturing industries for instant cars, phones, computer and the list going on.
ReplyDeleteMeanwhile human resource management also taking the advantage of the technology. However there are some drawback when it's in human resource management. In recruiting employees it will recruite the candidate based on the data (Curriculum vitae) input. Means if someone has a colourful CV he will be qualified. What is your argument on this ?
Very practical question Azeem. By incorporating AI algorithms that analyze a broader range of factors beyond the CV, such as online portfolios, social media presence, or even analyzing responses to situational judgment tests, we can obtain a more comprehensive understanding of a candidate's skills and suitability for a role. Additionally, AI can recognize and account for interpersonal skills, cultural fit, and other intangible qualities that contribute to a candidate's overall potential. AI-powered chatbots can engage with candidates throughout the recruitment process, answering their questions and gathering additional information to help recruiters make better decisions. AI can be used to analyze video interviews, evaluating candidates based on factors like body language, tone of voice, and facial expressions, providing additional insights into a candidate's personality and soft skills.
DeleteOnce the right tools are available, Human resource specialists will start using those tools.
The use of Artificial Intelligence in HRM has become popular in recent years. However, AI in HRM has some drawbacks. This can lead to loss of privacy and control of personal data, as well as potential bias in AI-driven systems' decisions.
ReplyDeleteI appreciate your input. As we are still in the early phases of integrating AI into HRM and that there will likely be additional policies and new tools that address the issues in the future. It's critical to regularly assess how AI is affecting HRM and to take action to reduce any potential drawbacks. As with any new technology, we need to make sure it's applied morally and in the interests of businesses and employees.
DeleteThe use of Artificial Intelligence in HRM has become popular in recent years. However, AI in HRM has some drawbacks. This can lead to loss of privacy and control of personal data, as well as potential bias in AI-driven systems' decisions.
ReplyDeleteIt is excellent that Artificial Intelligence is being integrated into HRM practices to improve efficiency and accuracy. While it is essential to recognize the potential drawbacks, we should continue to explore how AI can be utilized in HRM to maximize its benefits while minimizing any adverse effects. As we move forward, we can address privacy concerns and bias by implementing suitable regulations and ethical guidelines.
DeleteThe article provides an overview of the evolution of Human Resource Management (HRM) from the early 20th century to the current situation, where the COVID-19 pandemic has accelerated the adoption of technology in HRM. The article also highlights the potential of Artificial Intelligence (AI) to revolutionize HRM. AI can automate complex processes, enhance productivity, and provide data-driven insights for better decision-making. The article suggests that AI could significantly impact HRM practices in areas such as talent acquisition, employee engagement, performance management, and training and development. The author cites various sources to support the argument and provides figures and diagrams to illustrate the potential impact of AI on the global economy. Overall, the article provides an insightful view of the future of HRM with AI.
ReplyDeleteThank you 🙏 so much Hansika for your positive comments.
DeleteI think that the incorporation of artificial intelligence (AI) in human resource management (HRM) has the potential to drastically change the HR business since I am an AI language model. With the potential to automate repetitive operations and give data-based insights, AI can allow HR professionals to make better decisions, improve efficiency, and enhance employee experiences. To make sure that AI is not completely replacing human interaction and decision-making, it is also crucial to take into account the ethical aspects of utilising AI in HRM. Organizations can gain a competitive edge and transform HRM by adopting AI as a tool to supplement the skills and knowledge of HR personnel.
ReplyDeleteHi Niluka, really practical topic. Using AI can improve productivity, reduce operational cost and time on repetitive works etc. But will it be effect for the people's jobs in future?
ReplyDeleteThought provoking question, Kasun! I think yes, use of AI can replace certain manual roles but there is a great chance that it may create new job opportunities that require specialized knowledge and skills. According to a survey by Deloitte, 33% of HR professionals believe that AI will create new job opportunities and roles, requiring specialized knowledge and skills in AI and data analysis.(Global trend report,2020)
DeleteCandidates with these skills will have competitive advantage in the job market. (Hupfer,2020)
Dear Thahani, I appreciate your insightful comment. AI may eventually replace some manual jobs, but it will also open up new career paths that call for specialized data analysis and AI training.
DeleteNew professions like algorithm developers, data analysts, and AI trainers will appear as technology advances. Candidates with these skill sets will be in great demand since these occupations require a mix of technical expertise and creative problem-solving ability.
Additionally, incorporating AI into the workplace can improve decision-making, efficiency, and employee satisfaction, contributing to corporate growth and creating more job possibilities.
Great article on AI for the future development of HRM. Majewski, S. (2022) Adopting new technology will feel like a significant change, like artificial intelligence. The next difficulty is persuading stakeholders to invest in a solution whose potential profits are not always evident. Furthermore, there is no denying that investment, stakeholder support, and effective workflows are necessary for successful AI deployment.
ReplyDeleteI appreciate your comment and giving your views on the challenges of implementing AI in HRM. Even if the advantages of AI are apparent, it can be challenging to persuade stakeholders to invest in cutting-edge technology. Nevertheless, as technology develops, stakeholders will realise the value of investing in AI solutions for HRM as AI's potential profits and advantages become clearer. Strong stakeholder support and efficient workflows are essential for successful AI deployment. We anticipate the emergence of best practices to help organizations successfully deploy this new technology as more businesses adopt AI in HRM.
DeleteInteresting write up Nalaka! I totally agree that AI will free up a lot of time of HR professionals and allow them to focus on more strategic tasks. Organizations will need to ensure that HR professionals are well adapt and support the development of new skills and expertise to effectively use and manage AI tools and data.(Global trend report,2020) In addition to this, utilization of AI technology in human resource management necessitates the involvement of diverse professionals. This includes business leaders who can translate business needs into AI solution requirements and interpret results for decision-making, change management experts who can implement AI strategies and integrate them into organizational processes, user experience designers who can make AI systems more user-friendly, and subject-matter experts who can infuse their domain knowledge into AI systems for more effective decision-making.(McKinsey,2019)
ReplyDeleteI appreciate your thoughtful feedback. A team effort with numerous individuals with varied specialties is necessary for successfully integrating AI technology in HRM. Organisations must understand how crucial it is for their HR workers to acquire new skills and knowledge to efficiently manage AI technologies and data. The involvement of experts from many domains, such as business leaders, change management specialists, user experience designers, and subject matter experts can also aid the successful application and integration of AI strategies into organisational processes. Participation of such a broad range of experts can assist organisations in making better decisions and enhancing user experience.
DeleteThe blog post gradually takes us to the heading of the post "Revolutionising the Future of Human Resource Management (HRM) With Artificial Intelligence (AI)." through the evolution of HRM, impact with pandemic, and the usefulness of using AI technology in HRM. The blog post is nicely presented with a proper flow and with relevant in-text citations and references.
ReplyDeleteThanks a lot, George, for your positive comment.
ReplyDeleteThis article talk about important topic at work place for beneficial outcomes .Immune to human error, and with the ability to process thousands and thousands of data points faster and more accurately than us mere mortals could ever dream of, AI can predict and diagnose disease far more effectively and efficiently than most medical professionals. AI-powered tools can help doctors and researchers analyze patient data, identify potential health risks, and develop personalized treatment plans. This can lead to better health outcomes for patients and help accelerate the development of new medical treatments and technologies. The productivity of artificial intelligence may boost our workplaces, which will benefit people by enabling them to do more work. As the future of AI replaces tedious or dangerous tasks, the human workforce is liberated to focus on tasks for which they are more equipped, such as those requiring creativity and empathy.
ReplyDeleteThank you for highlighting AI's advantages in the medical industry. AI will significantly impact our jobs as it develops, giving us more time to focus on tasks that call for uniquely human skills. It is crucial to keep researching and debating its ethical implications and constraints to ensure that AI's integration into the workplace is ethical and long-lasting.
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