Synopsis

On

“ai driven talent management: predicting workforce needs and skill gaps”

for partial fulfilment of the requirement for the

Degree of Master of Business Administration (Full-Time)

Batch 2023-25

Submitted to: Submitted by:

Prof: Dr. Shailesh S. Thakur Garima Gupta

IPS ACADEMY, IBMR

(Rajendra Nagar, A.B. Road, Indore 452012 (MP)

Affiliated to: Devi Ahilya Vishwavidyalaya, Indore, M.P.

 Table Of Content

S.No. Topic Page no.

1 Introduction 3 to 5
2 Review of literature 6 to 8
3 Rationale of study 9 to 11
4 Objectives 12 to 13
5 Hypothesis 14 to 15
6 Methodology 16 to 18
7 References 19
Introduction
Corporations today tackle handling staff issues that bring about previously
unattainable opportunities and difficulties. Despite still advantageous,
traditional personnel strategy and growth approaches frequently fail to meet the
complex demands of contemporary organisations. AI might offer innovative
methods to improve processes for talent management in this situation. Here,
artificial intelligence attempts at predicting job requirements and pinpoint
vacant positions with an accurateness and speed that transcends those of
standard methods. The way businesses foresee and regulate their labour
demands is revolutionized by AI-driven recruitment. Talent management must
implement an aggressive strategy in light of the rapidly shifting nature of
technology, market needs, and skill requirements. Businesses may adopt
proactive, data-driven tactics and abandon reactive strategies by utilizing AI
technology

 AI's Importance for Talent Management

To be aggressive, firms need to predicted forthcoming requirements in
addition to managing to prevailing ones. By using enormous volumes of
data from several sources, such as market research, industry trends, and
employee performance measures, AI provides a solution. AI can predict
using predictive analytics. Standard approaches to talent management
typically rely on outdated methods and prior information, which might
prove unsatisfactory for forecasting future labour needs or discovering
skill gaps.
Agility and foresight are highly sought after in the rapidly evolving
business environment of today, which has been marked by
internationalization, technological advances upheaval, and changing
client demands. With the required abilities available as they
 modifications, such ability helps enterprises more effectively align their
personnel initiatives with permanent organizational goals.
 Estimating Labour Needs
AI can be used, for example, by a business planning and developing to
enlarge into latest marketplace to forecast the different type of and
quantities of talents required to support that expansion, enabling the
creation of strategic recruiting and training strategies.
The use of predictive analytics empowered by AI is essential for
anticipating labour shortages. This involves forecasting consumer interest
in specific jobs, recognising possible shortages in candidates, and making
growth strategies. AI models may produce insights about future
employment requirements by evaluating historical data, present patterns,
and external variables like economic upheavals and technology
improvements.
 Determining Skills Shortfalls
The capability of AI for identifying and eliminate shortages of skills is a
key advantage for management of employees. Artificial intelligence (AI)
algorithms have the capacity to appraise the skill sets of present
employees in comparison to anticipated future demands, indicating areas
that require more training or hiring. Artificially intelligent systems (AI)
may examine or study descriptions of jobs, personnel cover letters, and
commercial requirements using methods like natural language processing
(NLP) and machine learning algorithms. This permits AI to find out gaps
among present skill sets and those demanded for success in the upcoming
future. . This allows AI to identify gaps between current skill sets and
those needed for success in the future.
Preventive action is necessary to bridge these skills gaps and keep the
organization competitive and successful. Through focusing skill
development programs and matching hiring efforts to needs assessments,
 companies may better equip their personnel to take on new challenges
and opportunities.
 Consequences
More accurate projections of employment needs and recognising
deficiencies in skills conduce to more tactical and productive staff
administration activities. The utilization of AI in recruitment and
selection doesn't come absent obstacles nevertheless given that there are
difficulties with confidentiality of data, algorithmic prejudices, and
requirements for seamless collaboration with present technology. It is
critical that these barriers be conquered with the goal to implement AI in
recruiting and selection in a legal and successful method. There are plenty
of opportunities to hiring methods that use AI. Businesses that engage
could boost overall worker alignment with corporate objectives,
customize training programs, and streamline their hiring procedures.
Additionally, AI-driven insights help organisations make better decisions
and respond more quickly to changes in the business environment.
Firms' attitudes to personnel development and preparation have grown
significantly with the implementation of AI-driven hiring and firing. AI
enables firms proactively handle their employee supplies, integrate their
resources with strategic goals, and forecast potential demands by awaiting
labour needs and discovering vacant positions with previously
unattainable exactness.
AI-driven talent management is fundamentally reshaping how
organizations approach workforce planning and development. By
leveraging AI’s predictive capabilities, businesses can better anticipate
future workforce needs and address skill gaps more effectively. As a
result, organizations can stay ahead of the curve in a rapidly changing
world, ensuring their talent pool is not only aligned with current demands
but also future-proofed for emerging challenges.
Review of Literature

 Theoretical Structure
Foundational ideas support AI-driven talent management. The goal of
strategic human resource management (SHRM) is to attain competitive
advantage by coordinating HR practices with organizational strategy
(Barney, 1991). By utilizing quantitative data to inform strategic HR
choices, data-driven decision-making reinforces this alignment even more
(Brynjolfsson & McAfee, 2017). The fundamental basics of AI-driven
procedures, extrapolative analytics and abilities gap inquiry, make usage
of these philosophies to mend staff planning's exactitude and efficiency.

AI Applications Being Castoff in Talent Management Currently

Starting from ostentatious computerization to problematic predictive
analytics, AI presentations in talent management have industrialized
during the course of time. Implementations encompassed catboats for
hiring and automated resume screening, but more sophisticated uses like
skills gap analysis and predictive modeling are now possible thanks to
recent developments (Tambe, 2020).

 Estimating Labour Needs

For offering reliable projections, machine learning algorithms, regression
analyses, and methods such as clustering investigate past data,
marketplace developments, as well as external elements (Huang & Rust,
2021). Employing analytics and prediction methodologies, it can be
accomplished to figure out future employment necessitate using AI
simply by taking into account an assortment of data streams. Chui et al.'s
 (2018) case analysis, for instance, validated in what way a worldwide
technology establishment exploited AI to envisage enrollment desires
encouraged by innovations in equipment, authorizing more preemptive
staff arrangement and appealing talent.

AI can guesstimate operative demands additional precisely and

proficiently, which is an improvement. AI representations inferior the
possibility of overstaffing or understaffing by scrutinizing enormous
datasets additional hurriedly and appropriately than outdated
methodologies (Guenole, 2021).

 Discovery of Abilities Shortfalls

AI is similarly important for defining where assistances breaks occur in
administrations. To equate existing employee aptitudes with upcoming
necessities, skills gap investigation tools similar to natural language
processing (NLP) and arrangement acknowledgment are engaged. In
directive to spot contradictions and propose focused exercise or
employment tactics, NLP may study job reports and operative resumes
(Holland et al., 2019).
Empirical trainings validate the effectiveness of AI-driven abilities gap
investigation in tracing and determining skill gaps. Boudreau and Cascio
(2017) revealed, for illustration, that AI systems could precisely identify
skill shortages and recommend pertinent up skilling initiatives. Miller
(2020) directed additional examination that confirmed how AI expertise
might match operative faculties with job reports, classifying prospects for
development and guiding training packages.

 The Pros and Cons of AI-Powered Talent Management

Better-quality precision, efficiency, and synchronization of approaches
 are just a uncommon assistances that convoy AI-driven individuals
management. Additionally, AI advances administrative by proposing
data-driven understandings that enable more operative supply distribution
and scheduling (Brynjolfsson & McAfee, 2017). AI models upsurge the
precision of abilities gap examination and personnel predictions,
permitting big business to better notify their selections and match
aptitude approaches to shared objectives (Cappelli, 2019).
But there are disadvantages to consuming AI in workforces
administration. Overwhelming technical complications and making sure
AI tools cooperate effortlessly with recent HR measures are
supplementary necessities for instigating AI systems (West et al., 2019).
Assumed that AI systems be sure of on vast amounts of sensitive
employee data, data security and privacy are serious issues (Mason et al.,
2020)
 Future Courses
An amount of significant subjects ought to be enclosed in upcoming
study on AI-driven ability management. Technological progresses, such
as boosted AI procedures and statistics handling abilities, are anticipated
to supplement the effectiveness of services gap examines and calculation
models . The long-standing significances of AI on personnel expansion
and the moral consequences of its usage had better also be examined in
forthcoming studies .
Addressing investigation gaps relating to the valuable presentation of AI
in numerous organizational circumstances is also obligatory. Creating the
greatest of these technologies will requisite a considerate of how AI-
driven laborers management techniques may be custom-made to
numerous sectors and organizational sizes (Morgeson & Campion, 2019).
Rationale of study

Technology step forward and varying customer requirements are producing a

fast development in the public administration segment. In the middle of these
expansions, administrations are fronting growing complications in precisely
projecting their work necessities and satisfying skills absences. The self-
motivated environment of recent work situations is away from the competences
of outdated methodologies, which are generally based on static forecasting
models and historical data. With an emphasis on how artificial intelligence (AI)
may improve prediction accuracy and fill skills shortages, this study attempts to
investigate the justification for incorporating AI into personnel management
procedures.

1. The prerequisite for upgraded analytical skills

1.1. Flexible Workforce Requirements

Conventional personnel preparation approaches might not be able to hang

onto with these variations for the reason that they typically rely on
historical statistics and professional judgment. Businesses utility in a
more unbalanced environment that is well-defined by improvements in
technology, shifting customer demands, and changes in the market. Large
volumes of data may be analyzed by means of AI-driven expectation
models, which can also spot tendencies that are not proximately obvious
consuming traditional procedures. Administrations may better plan for
and reply to new subjects by having a more precise estimate of future
workers’ difficulties (Davenport et al., 2020).
1.2. The Downsides of Conventional Talent Management Approaches

When to Plan: Proactive vs. Reactive

This volatile approach may outcome in under- or overstaffing, between
other inadequacies that damage administrative usefulness. Conventional
talent management tactics have a tendency to be responsive, meaning
them agreement with complications in the personnel as they come up
reasonably than before they become complications. By using predictive
analytics to predict labor necessities and spot services deficiencies before
they turn out to be solemn problems, artificial intelligence (AI) delivers a
more practical approach. Organizations may improve or integrate their
people tactics with long-term goals and commercial objectives by taking
proactive planning (Chui et al., 2018).

2. Benefits of AI-Powered Aptitude Management

2.1. Augmented Effectiveness and Accurateness

AI-powered skills improve the accuracy of services gap examination and

personnel estimates. AI structures are capable to guesstimate personnel
burdens more accurately and undoubtedly recognize abilities deficiencies
by exploiting machine learning procedures and innovative analytics. For
the reason that of the better-quality accuracy, businesses are better able to
make decisions on hiring, training, and development, which eventually
increases the efficacy of their staff as a whole (Brynjolfsson & McAfee,
2017).

2.2. Alignment of Strategy

AI simplifies the arrangement of administrative strategies and purposes
with talent supervision techniques. Establishments may restored match
their HR policy with long-term occupational objectives by utilizing
analytics to foresee forthcoming workforce demands and detect skills
shortages. This alignment guarantees that organizational success is
achieved via the efficient use of personnel resources in support of
strategic goals (Cappelli, 2019).D

3. Resolving Research Vacancies

3.1. The necessity of in-depth research

Further thorough research is required to assess the efficacy and

significance of AI applications for talent management, even in light of the
increased interest in these fields. Gaps in knowledge on the use of AI-
driven processes in various organizational contexts.
The prospective of AI-driven workforces supervision to outdo
conservative procedures and agreement perceptive statistics on labor
force preparation and ability expansion is the rationalization for
examining this arena. Administrations may well match their strategies
with legislative purposes, recover the precision and effectiveness of their
people supervision measures, and achieve a reasonable edge by exploiting
AI.
Objectives

1. Increase Workforce Needs

precisely predicting the forthcoming necessities of the labor force to bring into
line with administrative objectives and marketplace changing aspects is critical
for operative talent administration.

- Optimization of Workforce Allocation

AI-driven optimization procedures ensure the competence to improve labor

force distribution, safeguarding that the suitable personalities are allocated to
accountabilities at the suitable times.

2 – Identifying the skill gaps

Identifying skill gaps is a vital characteristic of deliberate talent administration.

It aims to identify the disparities that exist between the abilities that employees
and students currently possess and the talents that the organization will need to
succeed in the future.
-Comprehensive Skill Assessment
By means of a multiplicity of data foundations, comprising as performance
information, preparation logs, and self-assessments, AI is capable to do detailed
valuations of worker and students capabilities.
Hypothesis

In the context of AI-driven workforce management, several theories may be

developed, particularly for assessing labour challenges and needs and
identifying skill gaps:

 Comparing Traditional and AI Prototypes for Labour Requirement

Estimation:

The hypothesis suggests that AI prototypes working in tandem with

historical personnel data and external financial variables, as opposed to
conventional approaches that just use historical statistics, might be able to
more accurately predict future labour loads.

Rationale: By accumulating an extensive variety of resources associated

to labour force necessities, the amalgamation of internal statistics with
external aspects like market tendencies and financial conditions might
restore the forecast's accuracy.

 Determining the Skill Gaps with AI's Effectiveness:

The hypothesis is that AI structures will be capable to recognize skill

gaps when they examine worker performance data and job reports.

 Characteristics of Proposals for Adapted Instruction:

Hypothesis: Employees that receive individualized preparation

endorsements from AI will practice higher rates of skill improvement as
 compared to regular preparation programs.

Rationale: Commissioned training techniques based on specific skill

shortages and job objectives are likely to yield greater success in
operational skill augmentation than generic exercise regimens that do not
target specific needs.

 Linking Fixed and Real-Time Data to Improve AI Accuracy:

The following hypothesis is related to models based on fixed, historical

data: AI models using real-time data would provide more accurate
estimations of labor shortages and skill shortages.

Rationale: Adequately fed real-time facts enable AI models to adapt to

current patterns and variances, making them more adept at dispersing
relevant and pertinent understandings.
Methodology

a) Research design
Type: Descriptive and exploratory research.

Approach: Quantitative analysis supported by qualitative insights.

Purpose :

- Primary Objective: To explore how AI can predict workforce needs and

identify skill gaps within organizations.

- Secondary Objective: To assess the effectiveness, accuracy, and impact of AI-

driven talent management tools compared to traditional methods.

b) Variables to be used

Dependent Variables

These are the outcomes that you want to predict or measure:

1. Workforce Composition

The number of employees with specific skills or competencies and

overall employee turnover rates

2. Skill Gaps

The difference between current skill levels and required skill levels for
specific roles and the number of unfilled positions due to lack of qualified
candidates

3. Employee Performance

Productivity levels and efficiency metrics across teams and quality of

work or output related to specific projects

4. Training Effectiveness
 Improvements in skills post-training and correlation between training
participation and performance metrics

Independent Variables

These are the factors that can influence or predict workforce needs and skill
gaps:

1. Employee Performance Data

Performance reviews and ratings and sales figures or project completion

rates

2. Employee Engagement and Satisfaction Scores

Survey results regarding job satisfaction, work environment, etc.

3. Training and Development Programs

Participation rates in training programs and types of skills being taught or

developed

4. Market Trends

Industry demand for specific skills (e.g., tech skills in IT) and Economic
indicators (e.g., unemployment rates, job market trends)

c) Sampling Technique

Probability Sampling: Random sampling to ensure a representative sample of

the target population.

Sample Size: Determined based on statistical requirements to achieve sufficient

power for analysis. For example, a sample size of 50-100 respondents for
surveys to ensure reliable results.

d) Tools for data collection

To collect or gather the information for a research titled "AI-Driven Talent
Management: Predicting Workforce Needs and Skills Gaps," the following
resources are important:

Surveys and Questionnaires: Surveys and questionnaires are conducted which

an employee may utilise to share their ideas on the usage of AI in talent
management.

Tools for data analysis

a) Tools for data analysis:

The collected data was analyzed on the basis of employee feedback.
References

Key sources for a study on "AI-Driven Talent Management: Predicting

Workforce Needs and Skills Gaps" are as follows:

 A. Bhatia and P. Ghosh (2021): AI in human resource management: A

review and future research plan. Strategic HRM Journal, 10 (2), 45–60.
The effects of AI on HRM are discussed in this article, with a particular
emphasis on the use of predictive analytics in workforce planning.

 Feinzig, S., and Guenole, N. (2018): The commercial case for AI in

HR: A practical approach. IBM Institute for Business Value. This tutorial
explains how top businesses use AI to predict labour shortages and
pinpoint skill gaps.

 M. H. Huang and R. T. Rust (2021): AI and the future of service:

Implications for HRM. 24(1) Journal of Service Research, 7–26. This
essay investigates AI's function in controlling skill development and
forecasting talent requirements.