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An Empirical Study of Artificial Intelligence and its Impact on Human Resource

Functions

Conference Paper · January 2020

DOI: 10.1109/ICCAKM46823.2020.9051544

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2020 International Conference on Computation, Automation and Knowledge Management (ICCAKM)
Amity University

An Empirical Study Of Artificial Intelligence and its

Impact on Human Resource Functions
DrGarima Bhardwaj S.Vikram Singh Vinay Kumar
Amity University,Gr Noida Amity University,Gr Noida Amity University,Gr Noida
[email protected] [email protected] [email protected]

Abstract: The phenomenon of AI has been widely studied in and execute. The growth of any organization depends on how
several areas. This paper is based on the use of artificial efficiently it merges manpower, methods and machinery
intelligence and its impact on HRM due to technological intelligently to bring transformational value at minimum cost.
advancement in IT landscape. At present almost all companies are This study is focused on strengths of AI and its capabilities for
implementing AI in their functional areas to increase efficiency of
Human resource transaction via Agnostic Chabot technology
employees in organization. AI role in HR domain starts with
relates to intelligent automation. Beyond the new and
recruitment till performance appraisal of employees. The aim of
the present research is to examine the relationship between innovative benefits of AI, This research shows innovative
artificial intelligence and Human resource functions in IT industry technology is the best way to combine and automate HR
in Delhi/NCR location weather this relationship is moderated by transaction with safety. In today’s global economy if
innovativeness and ease of use at HR operations. This study was organization wishes to remain competitive, they need to come
conducted among 115 HR professionals at various IT sector in across at ways to collaborate AI and HR transactions in their
Delhi/NCR region. A multiple regression method was used to test decision making process. Organization should confident on AI
hypothesis and confirmed positive relationship between these two to perform administrative responsibilities to become more
factors establishing about the increased use of AI at work results
effective. Many HR professionals are not able to understand
better HR functional performance. However AI has significant
that AI has capabilities and unique attributes to redefine HR
relationship with innovativeness and also with ease of use which
reflects AI effects HR with innovations and ease of use. This study and can give it better relevance. This study is all about to give
will give insights of Artificial intelligence which is coming asanew new framework of AI in HR domain for modern business
revolution in industry with new name Industry4.0. organization.

Keywords: Artificial Intelligence, Innovativeness, Ease of use, II. LITERATUREREVIEW

Human resource Management, Industry4.0
According to new study,38% organizations are already using
AI at workplace and 62% enterprises are expecting to start
using AI very soon. Deloitte report shows 33% employees
I . INTRODUCTION desire that their workplace will become integrated by AI in the
Artificial Intelligence defines the technology applied to perform coming future. If repetitive tasks can be assist by digital system
a task that requires some intelligence level to accomplish. It and automated software it would make easier for manpower to
refers a trained technology to perform like human can perform. give more time on innovations and creativity [1]. IBM is
The Components of AI makes differentiate it than ordinary interties to implementing AI system that will answer most
software as it comprises high speed computation, advance critical questions for the new employees for their better
algorithm and a large amount of quality data.AI uses algorithm productivity .Statistically AI system can learn and predict some
that integrates quality data and quick computational services possible outcomes and then make decisions based on many
which resulting that Core AI provides stability and accuracy to criteria [2].AI can integrated with EI(Emotional Intelligence)
everyday processes. AI technologies offer vast opportunities to where various robots use automated learning, reasoning and
improve organization’s HR functions like recruitment, payroll, structural programming and abilities to recognize emotions and
and self service transactions, access policies and procedures. feeling of humans. These machineries also provide information
Learning Machines and humans are working together to create to guide, direct, think, behave and manage emotions according
huge amount of HR data in the cloud and implementation of to the changing dynamic environment. These modern systems
artificial Intelligence provide better insight into how to operate can assistdigitally and associate with humans to provide users
47
978-1-7281-0666-3/20/$31.00©2020IEEE
2020 International Conference on Computation, Automation and Knowledge Management (ICCAKM)
Amity University
logically and rational decision making [3]. AI automation is
replacing routine tasks with very less intervention of
manpower.AI helps in screening CV, text automated messages
and also helps in background and reference check[4].
International Human resource Management is projected to
touch $30 billion by 2025.Technology advancement, artificial
Intelligence and machine learning in HR functions is enabling
professionals to execute traditional practices in an easier and
faster way. In the next two years, Many HR professionals are
planning investments in like predictive analysis, Artificial
intelligence and other automation process [5].The time
manpower’s spend in filtering CVs from thousands applications Source “Artificial Intelligence &Human Resource
from online portals for the new employees in the organization Management in Indian IT Sector:SSRN-Elsevier
and also helps in on boarding process with non biasedprocess
and finds technically sound candidates for the positions[6]

III. OBJECTIVES OFSTUDY

1. To identify and analyze the role of AI in Human Resource

Management in ITIndustry.
2. To study the required skill set for the collaboration between
Human andMachine.

IV. NEED OF ARTIFICIAL INTELLIGENCE IN

HUMAN RESOURCESYSTEM

The new built human resource Information system (HRIS) has

established foundation of AI applications in the system. AI
developed Human-Computer interaction function enhances
management efficiency which helps to improve the functional
procedure for collecting, maintaining and validating data
required by an organization. The technological advancement in
the form of AI is replacing routine tasks with minimum
interference of humans[7]. AI is assisting in the various
activities of recruitment process like screening CV, sending Source “Artificial Intelligence &Human Resource
automated text and helps in reference checking.[8]. It has been Management in Indian IT Sector:SSRN-Elsevier
observed that these machines work better then HR team by
reducing the rate of attrition and also improving employee
V APPLICATION OF ARTIFICIAL INTELLIGENCE
retention. It is seen that simple activities of HR is being
IN HUMAN RESOURCE SYSTEM
successfully carried out by AI but it is also needs to check in
complex situations is yet to see. There are many reasons for
Artificial Intelligence is new gen technological advancement
adopting AI as it gives huge benefits to the organization in less tool that can feel, think, plan and implement tasks that
timeline and with more accuracy[9]. improves human performance without obstacles from
work[10]. AI system categorized in three major forms
concern with HR system are Voice Recognition, BOTS and
Algorithm (.Narrow based AI functions are suitable for
compiling data information in HR domain like verifying
information and solving related backendproblems[11].

Voice Recognition
This AI application converts information into the suitable

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2020 International Conference on Computation, Automation and Knowledge Management (ICCAKM)
Amity University
words, videos, and search internet sites, broadcast
information automatically to analytical tools and on C. PerformanceManagement
demand in the suitableformat of speech or text. In Evaluation of individual performance is a challenge for the
organizations AI assistants of HR Managers usually organization because of the biasness in the work environment. AI
work on this technology[12]. The primary function of application will reduce and rectify biasness with feedback.AI driven
this technology is to make actions based on voice applications assess continuous checking objective and the joint team
commands, like controlling personal and office devices efforts between the employees[21].AI uses for better work and direct
,opening files and websites and other simple related command workforce inside the organization. By gathering data in different
functions[13]. perspective like levels of employee engagement, performance data,
cause of employee turnover.AI may forecast performance indicators
BOTS of shining employees and also for the employees who needs to
BOTS application applies by major search engines to search the changepositions[22].
internet for keyword phrases. This tool useful to extend
chatting, ask queries, chatting, giving instructions and D. Retention
directions and other useful functions[14]. Current AI system
needs to be improving with several modifications to solve At one side recruitment of talented workers is the most
complicated and complex problems. Even simplest problems challenging task and on the side it is also hard to keep talent
and decision involves so many complexities and includes in the group.57% organization consider retention of
thousands variables. AI can become faster in searching and employee is the toughest and most serious task. AI may
finishing repetitivetasks.[15] break down this barrier and its application may predict the
requirements and actions of individual employee. This
AI ALGORITHM technology helps to HR experts to be proactive and
AI algorithms are codes and instructions which needs to follow necessary actions before theincidenthappens.[23]
step by step and guide AI functions. Sophisticated algorithm
helps to set to automate various HR functions such as colleting
business intelligence, dissemination of information to VII. HYPOTHESIS DEVELOPMENT AND
stakeholders, supervising key performance indicators and RESEARCH MODEL
tracking activities on social media of employees and prospects HR Functions
Innovativeness [HR(F)]
candidates[16]. (IS) Recruitment
Artificial andSelection
VI. IMPLEMENTATION OF ARTIFICIAL Intelligence
(AI) Performance
INTELLIGENCE IN HUMAN RESOURCESYSTEM Management

A. Recruitment and Selection

Ease of use
Short listing and screening resumes from large pool of Training and
(EOU)
applications to find the suitable candidate for the job is most Development
challenging task for HR executives. AI applications will scan,
and evaluate the resumes and reject resumes which are not
suitable for the job.[17] AI software will able to screen resume Retention
and shortlist the suitable candidate for the job. Chabot
application helps to improve candidate experience and
continuously update the requirement and suggestions.AI
software will be able to assess candidate words choice ,speech Model of Hypothesis Relationship
and body language through the audio video mode and can
analyze the candidates characteristics will fir the job[18]. TABLE I- FORMULATION OF HYPOTHESIS
B.Training and Development
Hypothesis Description Path
The competencies we need at work are dynamic. AI requires
the application which can suggest videos or learning programs H1 AI has positive significant impact on
related to the job tasks and experience. These are software Innovativeness HR(F)
which automatically read instructional documentations and AI HR(F)
H2 AI has positive significant impact on
prepare related micro learning programs[19]. AI software will EOU AI EOU
provide majorly personal learning based programs like AI has positive significant impact on
converting written documents in visuals. AI learning programs H3 Innovativeness IS AI IS
could be utilized in more adequately manner in employee
engagement which results some innovative learning among
employees[20] VIII. RESEARCH METHODOLOGY AND DATA
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2020 International Conference on Computation, Automation and Knowledge Management (ICCAKM)
Amity University
COLLECTION INS>HRM .32** .34** 12** Partial
The study is a quantitative research which based on two (F) * * . 62*** Mediatio
major factors : HR functions and Artificial Intelligence. n
This study is also used secondary data to EOU>HR .23** .47** .62*** 13** Partial
complementing the findings and conclusion of this M(F) * * Mediatio
research. All factors are measured from the HR n
professional’s perspective working in technology in HR I>HRM(F) 8*** 8*** .62*** 27** Partial
domain using a questionnaire. The model constructs to Mediatio
test n
from the previous other studies related to HR function and AI
role in HR domain and validating for the present study. The
questionnaire has been circulated among 150 HR professionals .
in different IT sector total 115 feedbacks collected for this AI System R2 (ΔR2) 34(.31)
study and therefore 110 responses have been utililizedfordata F-statistic 114.02
analysis. This research is used correlation and regression to INS R2 (ΔR2) .12(.10) .10(.09)
establish relation and positive effects on HR function of AI F-statistic 16.34 15.79
with moderating role of IS andEOU. EOU R2 (ΔR2) .02(.02) .18(.17)
F-statistic 10.05 20.08
IX. RESULTS DESCRIPTIVESTATISTICS HR(F) R2 (ΔR2) .22(.19) .22(.19)
F-statistic 26.32 45.56
Below Table, presents the descriptive statistics and the
correlations of HRM Functions, and employees ‘Artificial Notes: ***p<0.001, **p<.01.
Intelligence.

TABLE II: DESCRIPTIVE STATISTICS AND

X. Analysis andDiscussion
CORRELATIONS
Research Hypotheses are tested using three models as
shown in table III. The first hypothesis focuses the
Variable Mean SD 1 2 3 4 5 relationship between AI and its effect on HR functions. The
results have shown the total effect of AI on each factor of HR
Recruitment 3.43 578 1 functions of proposed model. AI system has innovativeness
and in the whole traditional method and that innovativeness
Selection brings lot of innovativeness in HR function which shows
with moderate and significant effect on HR functions ((β =
Training and 4.32 489 289** 1
Development
.19) whereas relatively very positive effect was found on
with ease of use with HR function (β = .32) with the use AI.
Performance 4.56 547 321** .011 1 Thus the results of model have satisfied the first requirement
Management
of the process. Hypothesis 2 was tested to building
Retention 4.01 624 356** 64** 32** 1 relationship with innovativeness and HR functions,
Ease of use 4.21 756 667** 21** 56**. 428 1 Innovativeness controlling Hrfunctions Innovativeness (β =
.28). and Ease of use ((β = ..45) were also found significant
relationship with HR functions. These results have supported
Note: **p<0.01, * p <0.05 allhypotheses.
.

TABLE III :HYPOTHESIS TESTING AND RESULTS XI. Conclusion

From the above analysis, AI has its existence and

Model Model Model Model Conclusion
1 II III IV importance in many HR functions.AI is seen replacing
Std Std Std Std routine jobs in HR functions with less intervention by
PATH Coef Coef Coef Coef
humans. AI is observed to perform better than humans by
reducing turnover rate and raise talent retention. This study
Proposes AI framework which comes under the umbrella of
HR functions. Artificial Intelligence and machine language
has been used by many companies in the field of human
50
2020 International Conference on Computation, Automation and Knowledge Management (ICCAKM)
Amity University
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