A SYNOPSIS

ON
“Impact of Artificial Intelligence in HRM for Banking Sector
with Special Reference to Kotak Mahindra Bank”

Submitted in partial fulfillment of the requirements

for the award of
Master of Commerce (M.Com)
MCOP-001
Subject Area: HR

SUBMITTED TO

SCHOOL OF MANAGEMENT STUDIES

INDIRA GANDHI NATIONAL OPEN UNIVERSITY,
MAIDAN GARHI-110068

Regional Centre: 46 (Darbhanga)

Study Centre Code:

Prepared By
SAURAV KUMAR JHA
Enrollment No-2253519764
Regional Center- 46 (DARBHANGA)

Under The Guidance Of

 TITLE OF THE SYNOPSIS
IMPACT OF ARTIFICIAL INTELLIGENCE IN HRM FOR BANKING SECTOR
WITH SPECIAL REFERENCE TO KOTAK MAHINDRA BANK

1. INTRODUCTION
Organizational growth depends on how well it integrates its labour, processes, and
machinery to produce value at a low cost. Recently, Human Resources (HR) has
advanced in a way driven by technology and data that employees continuously
provide to enhance their strategic role. One of these technologies is Artificial
Intelligence.
“Artificial Intelligence can be defined as a science that aims to replicate aspects of
human intelligence such as learning, reasoning, perceiving, critical thinking, etc.,
using computer programs that are guided by logic”. Russel and Norvig describe AI as
an “intelligent agent” as machines can act intelligently as humans by mimicking
human intelligence and this is made possible by feeding the machines with lots of
data that are tested and trained through machine learning models. It can also be
expressed as the ability of a system to correctly understand input, learn from it, and
apply it in achieving specific objectives and tasks through adaptable implementation.
Human intelligence is enhanced by artificial intelligence, as it relieves employees
from carrying out tasks that can be automated, thereby enabling them to develop their
skills and knowledge in a more productive manner.
Human resource management (HRM) finds its root in the emergence of industrial
welfare work from the 1890s. There have been shifts from one directed system of
management to a more technical system of management leading to growing
professionalism in this role. Organizations can increase the value of their competitive
edge through the acquisition, expansion, and fusion of not only human capital but
also organizational and physical resources, and this can be achieved when
organizations truly work on HR practices. AI technology can be incorporated with
HR functions to come up with innovative solutions to employee problems concerning
HR.
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This study attempts to discuss the applications of AI in human resource management
(HRM), its benefits, and its challenges in service sector.
What is Human Resources Management?
Human resource management is a separate and specialized function which all
managers need to perform.
It is that branch of management which is concerned with the recruitment, selection,
development and the best use of employees. Thus, human resource management
ensures that every employee makes his maximum contribution to the achievement of
organizational goals. The human resource management that we find today is the
result of a number of significant inter-related developments since the era of industrial
revolution.
With the emergence of trade union movements, need for a person who could act as
an important link between management and workers was strongly felt. Such a role
was initially performed by Labour Welfare Officer confined only to the welfare
activities of the employees.
With the passage of time, factory system was introduced. Thousands of persons were
employed under one roof. The need for employing more and more employees had
arisen. And the role for filling and giving people for the organization was given to a
person known as ‘Personnel Officer’. His main function was to recruit, select and
place the employees.
As time went by, fast changing technological development necessitated new skill
development and training to existing and new employees. Human relations approach
recognized people as the most valuable source in any organization. The traditional
concept of Labour welfare and Personnel Management had to be replaced with
Human Resource Management. Presently, all these aspects viz recruitment, selection,
placement and labour welfare etc. are concern of Human Resource Management.
Keeping the foregoing in view, it can be concluded that human resource management
has replaced the traditional concept of Labour Welfare and Personnel Management.
The main functions performed by Human Resource Management are:
I. Determining the number & types of employees required.
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 II. Recruitment, selection & placement of employees.
III. Providing training to the employees for improving their performance & career
growth.
IV. Performance appraisals
V. Motivating the employees by providing both financial & non-financial
incentives.
VI. Ensuring social security for employees & handling their grievances.
VII. Defending enterprises from legal complications
VIII. Establishing amicable relations between union & management.

ABOUT COMPANY
Kotak Mahindra Bank Limited is an Indian banking and financial
services company headquartered in Mumbai. It offers banking products and financial
services for corporate and retail customers in the areas of personal
finance, investment banking, life insurance, and wealth management. It is India's
third largest private sector bank by market capitalisation after HDFC Bank and ICICI
Bank. As of December 2022, the bank has 1752 branches and 2814.
In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship
company, received banking license from the Reserve Bank of India (RBI), becoming
the first non-banking finance company in India to convert into a bank - Kotak
Mahindra Bank Ltd. Effective April 1, 2015, ING Vysya Bank Ltd. merged with
Kotak Mahindra Bank Ltd. The Bank has four Strategic Business Units – Consumer
Banking, Corporate Banking, Commercial Banking and Treasury, which cater to
retail and corporate customers across urban and rural India.
The Group offers a wide range of financial services that encompass every sphere of
life. From commercial banking, to stock broking, mutual funds, life insurance and
investment banking, the Group caters to the diverse financial needs of individuals
and the corporate sector. The Group has a wide distribution network through
branches and franchisees across India, and international offices in London, New
York, California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore.
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2. RATIONALE BEHIND THE STUDY
The purpose of this study is to know what impact the Artificial Intelligence has on
Human Resource Management in the current era or how AI will affect HRM in the
future. As a concept, artificial intelligence has been used around decades. But from
last 20 years, the successful application of machine learning enabled the boom of AI.
This study is important because AI, today, has begun to engage the workforce. It is
helping the staff to manage their time effectively and add the strategic value to the
organization. AI has the potential and capability to solve many business problems as
well as to make shift in productivity of the industries by introducing automation for
tedious, time consuming, mundane and repetitive tasks.

3. LITERATURE REVIEW
Scott W. O’Connor (2020): In the article titled Artificial Intelligence in Human
Resource Management, the author clearly says that artificial intelligence will
continue to positively shape the field of human resources management in the coming
years. HR professionals should also be more aware of the challenges that they might
face. Thus, to prepare for the future of human resource management, professionals
should take the necessary steps to learn about the current trends in the field, as well
as lay a strong foundation of HR knowledge that they can build upon as the
profession evolves.

Prasanna Vatsa and Kusuma Gullamjji (2019): In the paper titled “To Study the
Impact of Artificial Intelligence on Human Resource Management”, it is clearly
stated that the integration of HR practices with AI based applicants definitely have a
stronger impact in enhancing the organizational performance. The study depicts that
AI is everywhere in HR, be in recruitment, training, on boarding, performance
analysis, retention and so on, but many of the organizations are still lagging in
integrating AI to its HR – practices because of its cost associated in integration.
Jennifer Johansson and Senja Herranen (2019): In the paper titled “The
Application of Artificial Intelligence in Human Resource Management”, it is
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mentioned that the area of AI in recruitment is new and there are not many
organizations that has implemented AI in all parts of the recruitment process. It also
mentions that the main benefits of AI are seen as the speeded quality and elimination
of routine tasks, while major challenge is seen as the companies’ overall readiness
towards the new technologies.

Albert Christopher (2019): In his article names as “Use of Artificial Intelligence in

Human Resource Management, the author says that AI – based applications raise
employee productivity. It has the ability to analyze, predict, diagnose and become
more capable resource while focusing on employee need and outcomes. However,
there are challenges like privacy, talent gap, maintenance, integration capabilities or
limited proven applications. AI systems must be managed carefully by finding
reliable learning data sets, using the right implementation approach, seeking clarity,
eliminating bias and considering unintentional consequences.
Barbara van pay(2018): In this article how AI is reinventing HR it was clearly
stated that all the organizations mostly looking for AI solutions for their business and
they are scared of letting a non-human entity handle the procedures of business. By
using the AI in organization it can reduce the time consumed for filling and hiring
the candidates who applied for the job, through screening multiple candidates,
gathers data they rank the candidates by considering other information like
experience ,skill set etc., to find right person. After finding the perfect fit for the role
next main part is interviewing, now days AI interviewing software such as hike vue,
mya are used mostly. AI technology takes care from sourcing to interview which
drastically reduces the recruitment timeline and help to hire right candidates with
ability to perform in specific roles and make placements much easier and at faster
rate.
Anupam jauhari (2017): In the paper title how AI and machine learning can affect
HR practices today. AI is becoming increasingly relevant and reshaping the way
businesses employ and do every activity recruitment is simple for practitioners as
machine learning technology will use chatbot to carry out all activities, AI will
screen candidates and send the confirmation or rejection email to the candidates.
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according to the analysis of India report of Delloite 5th annual global human capital
trends 53% of companies are ready to deploy digital tools while 22% have already
deployed their tools.
Edge Admin (2017): Now the present world is ruled by the advanced technologies,
which is intimidating the global workforce. Out of all the technologies, we can say
AI is the most groundbreaking one. As importance in the application of AI almost in
each and every sector may it be banking, health care insurance etc., but the results
achieved are remarkable. AS most of the companies across the globe are adopting AI,
India is also not an exception that new firms especially(start-up’s) are now
integrating their business with AI to stay more visible and to be competitive.

4. STATEMENT OF THE PROBLEM

The rapid advancement of Artificial Intelligence (AI) technology has brought
transformative changes to various industries, including banking. However, the
integration of AI into Human Resource Management (HRM) practices within the
banking sector, particularly in institutions like Kotak Mahindra Bank, presents both
opportunities and challenges. Despite the potential benefits, such as improved
efficiency, better decision-making, and enhanced employee experience, the effective
implementation of AI in HRM faces obstacles ranging from data privacy concerns to
employee resistance to change.
The problem statement for this research is to comprehensively understand the impact
of AI on HRM within Kotak Mahindra Bank's operations in the banking sector.
Specifically, it aims to address the following key questions:
1. How extensively has AI been integrated into HRM practices at Kotak
Mahindra Bank?
2. What are the key AI applications being utilized in HRM, including
recruitment, training, performance evaluation, and employee engagement?
3. What is the perceived impact of AI on HRM processes, efficiency, decision-
making, and employee experience?

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 4. What are the main challenges faced in the adoption and implementation of AI
in HRM within Kotak Mahindra Bank?
5. What strategies can be recommended to optimize the integration of AI into
HRM practices at Kotak Mahindra Bank while addressing challenges and
maximizing benefits?

5. OBJECTIVES OF THE STUDY

The objectives of the study are as follow:
 The objective of this study is to know the impact of Artificial Intelligence on
Human Resource Management in service sector like Kotak Mahindra Bank.
 To identify the role of AI based software in Hiring the best talent from
industry for Kotak Mahindra Bank
 To evaluate the function of AI based software specifically towards the
screening process which is the primary process of hiring and cost of using such
systems
 To understand the effect of AI based software on recruiters’ job

6. RESEARCH METHODOLOGY
Research Design
On the general term, the research design is viewed from two perspectives,
quantitative research design or qualitative research design. They can both be used or
applied distinctively or together.
A quantitative research design is used to examine the relationship between variable
by using numbers and statistics to explain and analyze its findings and there are four
types of quantitative research design:
Research Approach
The various ways of research approaches are:-
● Observation research
● Survey research
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● Focus group research
● Experimental research
In this study the approach used was survey approach because the main objective of
our survey was to find out the study of consumer buying behaviours towards health
insurance.
Sample Plan
Sample unit: Darbhanga
Sample size: 100
Field Work Area: Bihar
Sampling Procedure
The sampling procedure can be of two types:
● Probable sampling
● Non-probable sampling
In this survey expert judgments sampling method can be used.
Collecting the Information
The information was collected from customer by personally asking them question
and filling the questionnaire.
● Analyzing The Information
The information available is analyzed in the form of questionnaire.
● Presentation of Findings
Presentation of research in the company is on the basis of findings and suggestions
Analysis
Data Analysis and the Interpretation
The data analysis and the interpretation are on the basis of the finding of the
respondents on their buying behaviours and the brand on which the people response
depends. The data is collected on 100 respondents.

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7. LIMITATIONS OF THE STUDY
1. Sample Size and Scope: The research may be limited by the size and scope of
the sample. Due to resource constraints, the study might focus on a specific
department or level within Kotak Mahindra Bank, potentially limiting the
generalizability of findings to the entire organization.
2. Data Collection Challenges: Obtaining access to sensitive HR data or
securing participation from key stakeholders within the bank may pose
challenges. This could potentially impact the depth and breadth of the research
findings.
3. Time Constraints: The study's timeframe may be constrained, limiting the
ability to capture long-term impacts of AI implementation in HRM.
Additionally, the pace of technological advancement may outstrip the research
timeline, making it difficult to assess the latest developments.
4. Bias and Subjectivity: There may be inherent biases in data collection
methods, analysis, or interpretation. Efforts to mitigate bias, such as through
diverse sampling techniques and triangulation of data sources, should be
acknowledged but may not entirely eliminate subjectivity.
5. Technology Limitations: The study may not fully capture the technical
intricacies or limitations of AI systems deployed within Kotak Mahindra
Bank's HRM processes, especially if proprietary technologies are involved.
6. Cross-sectional Nature: The study's cross-sectional design may restrict the
ability to observe changes over time or assess causality between AI
implementation and HRM outcomes.
7. Resource Constraints: Limitations in resources, such as funding, expertise, or
access to technology, may impact the depth and breadth of the research
investigation.

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8. PROPOSED CHAPTERS
Chapter 1: Introduction of Project
 Introduction of study
 objective of study
 Scope of the Study
 Limitation
Chapter 2: Literature of
Review Chapter 3: Company
Profile
 About Kotak Mahindra
 Organization Structure
 Human Resource
Chapter 4: Research Methodology
Chapter 5: Data Analysis &
Interpretation
Chapter 5: Finding, Suggestion and Conclusion
Chapter 6: References and Annexure

9. BIBLIOGRAPHY:
 Prasanna Vatsa and Kusuma Gullamjji (August, 2019), To Study the Impact of Artificial
Intelligence on Human Resource Management
 Jennifer Johansson and Senja Herranen (May, 2019), The Application of Artificial
Intelligence in Human Resource Management
 Albert Christopher (September, 2019), Use of Artificial Intelligence in Human Resource
Management
 Anupam jauhari (2017), How AI and machine learning can affect hr practices today
 Barbara van pay( sep 30, 2018): In this article how AI is reinventing HR
 https://medium.com/@albertchristopherr/use-of-artificial-intelligence-in-human-resource-
management-ddb4e4de9c6e
 https://www.businessmanagementideas.com/management/essay-on-human-resource-
management- hrm/2348#:~:text=Essay%20on%20Human%20Resource%20Management!
&text=It%20is%20t hat%20branch%20of,the%20achievement%20of%20organizational
%20goals.
 file:///C:/Users/Admin/Desktop/BI%20research%20paper/AI%20&%20HRM%20Questionnair
e.pdf
 Karan Hiren Bhalgat (August 2019), An exploration of how Artificial Intelligence is impacting
Recruitment and Selection process
 https://www.intechopen.com/books/cyberspace/research-design-and-methodology

Websites
https://www.google.com/
https://www.kotak.com/en/about-us.html

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