Artificial Intelligence and New Era of Human Resources

Impact of AI in an organization

After almost sixty years of evolution, Artificial Intelligence (AI) has become ubiquitous over past two decades (Morgenstern, et al., 2021). AI technologies have begun consistently grow and gain considerable prominence in almost all the fields, including medicine, engineering, agriculture, organizational management, tourism, transportation and have entered both the public and business environment (Mintz & Brodie, 2019). 

The fast-paced development of AI would transform people's personal lives and how firms network with their employees and customers. This new technological revolution at its core is disrupting the organizations and workplace. Technological innovations like AI are transforming the workplace and changing when, how, where, and by whom the job should be done (Ravin, 2017). Organizations are compelled to upgrade their organizational functioning and develop their human resources’ skill sets to achieve optimal company performance (Wiradendi Wolor, 2020). 

Role of AI in HRM

In the modern business world, AI has become an essential part of human resource management. As companies strive to remain competitive and efficient, they are turning to AI-driven solutions to streamline their processes and maximize resources (Schosser, 2023). From automated recruitment systems that identify top talent to sophisticated training programs that deliver personalized content, AI is revolutionizing HR departments around the globe. 

According to study conducted by Business News Daily - the majority of the 250 HR leaders surveyed stated they are already using AI in HR functions such as employee record management (78%), payroll processing and benefits administration (77%), recruitment and hiring (73%), performance management (72%) and onboarding new employees (69%).

AI has become increasingly pervasive in HRM. AI-driven solutions are being used to streamline many of the traditional process associated with HR. According to Schosser (2023), these are the six ways that AI plays a role in HRM,

1. Streamlining recruitment and selection 
2. Onboarding
3. Learning and Development
4. Increasing performance management
5. Employee engagement
6. Employee retention 

Advantages and disadvantages of AI in HRM

Advantages	Disadvantages
Increased efficiency and accuracy in administrative tasks	Potentially high costs associated with implementing and maintaining AI technology
Improvement in the screening and selection process of candidates	Potential for cybersecurity risks and data technology
Improved employee engagements and retention by providing personalized experiences and real-time feedback	Dependence on AI technology, leading to potential disruptions if the technology fails
Improved HRM ability to make informed decisions by analyzing data	Important to have greater transparency in AI algorithms. HR leaders should strive to gain a deeper understanding of AI algorithms to make more informed decisions
Ensure compliance with labor laws and regulations
Streamlined, personalized and effective learning and development
Increased productivity through routine task automation
Reduced bias associated with the screening process
HR leaders can dedicate more time and concentration to tasks that require human interaction

AI In HRM: Real-World examples

• 
  Paradox - Paradox introduced Olivia, an AI-driven aide catering to recruiters and job seekers. Functioning across web, mobile, and social platforms. Olivia interacts with candidates to comprehend skills, expertise, and job history. Subsequently, Olivia guides candidates, arranges interviews, and employs natural language technology to address company and procedural inquiries. 
• 
  Textio -  Textio empowers HR teams with its augmented writing assistant, Textio Flow, recognizing the significance of digital ads and job postings in recruitment. This tool aids recruiters in crafting job posts and ads that align with a company’s brand, sidestepping issues like specialized jargon and concealed biases. Textio’s advancements in augmented technology have earned it a prestigious position on Forbes’ AI 50 list.
• Phenom People - 
  
  Phenom People empowers businesses with a personalized hiring experience via its AI-driven chatbot. The Phenom bot engages candidates through an initial text exchange, posing questions to align them with optimal roles and refine the talent selection. When a potential match is identified, the chatbot streamlines recruiters’ responsibilities by suggesting convenient time slots for scheduling.
  
• Xor.AI - XOR. AI Recruiting Software and Platform is an AI assistant tool aiding recruitment across diverse technology, retail, healthcare, and mining sectors. Employing chatbots, XOR engages with candidates, enhancing application processes and reducing attrition. XOR further facilitates interview scheduling and gathers insights into candidates’ expertise and capabilities through tailored questions.

What is the future of AI in HRM?

By the year 2030, AI is projected to generate $13 trillion in global economic activity, according to studies. As AI technology advances, companies can anticipate increased automation, personalization, and data-driven decision making in HRM. AI will continue to help in the improvement of HR practices, including job-posting, candidate screening and employee performance management. 

Additionally, HRM should prepare for the emergence of new roles and job function, such as AI ethics officers, who will guarantee that AI algorithms are used ethically and fairly. As AI becomes more interwoven into HR operations, these positions will become increasingly vital, and HR leaders must guarantee that AI is utilized efficiently and equitably. 

Conclusion

Artificial Intelligence (AI) has moved from being futurist concept to a critical tool that enhance efficiency, accuracy, and strategic decision-making within the organization. However, the adaption of AI in HRM is not without challenges. Looking ahead, the future of AI in HRM is promising, as it can be used to support career growth, enhance employee engagement, and advance organizational strategies. 

In conclusion, AI is here to stay and it is essential to know how best to incorporate it to improve HR processes.  As AI becomes an integral part of the HR industry, it is crucial to leverage its capabilities while recognizing its role as a tool rather than a replacement for human expertise.

References

Mintz, Y. & Brodie, R., 2019. Introduction to artificial intelligence in medicine. 28 ed. s.l.:s.n.

Morgenstern, J. D. et al., 2021. AI's gonna have an impact on everything in society, so it has to have an impact on public health. 21 ed. s.l.:BMC Public Health.

Ravin, J., 2017. HR's new role: Rethinking and enabling digital engagements. Strategic HR Review, 16(2).

Schosser, A., 2023. What is the Role of AI in Human Resource Management. Retorio.

Wiradendi Wolor, C., 2020. Implementation talent management to improve organization's performance in indonesia to fight industrial revolution. International Journal of Scientific & Technology Research, Volume 4.