Reinventing HR in the Era of Artificial Intelligence

Abstract

Human resource management is evolving every day and so is the artificial intelligence (AI). While human resources (HR) is moving beyond its traditional roles of hiring, firing, and payroll, AI is shifting its gears from being merely the searching tools to enabling machines and robotics. AI is the intelligence developed in a system with the help of coding and programming, all set to replace the humans from monotonous jobs. Although AI cannot be sensitive as humans, but it can effectively handle the jobs that are repetitive, require less human interface, and where application of algorithm is possible. AI can not only enhance the performance and functioning of HR activities, it can also introduce new dimensions to make HR a strategic business partner in true sense. HR department spends most of its time into five traditional, time-taking but important functions, i.e., talent acquisition, training and development, compensation management, performance management, and handling employee relations. These are cyclical tasks that go on throughout the year, and HR is bound to center their efforts and hence unable to utilize its competitiveness on focusing other organizational issues. With the introduction of AI, HR will be better able to focus on organizational operations and plan the future course of action in advance to be fierce and competitive in its actions. It will make HR more capable and more decisive in employee management by providing accurate information, thus saving time and money. The chapter will try to provide a deeper understanding of the relevant aspects of AI in improving the efficacy of human resource management functions. It will show that how people, processes, and AI can be combined to bring transformational value within the organization at optimized cost. This chapter will also present the best way to integrate innovative technologies to securely automate HR functions with the use of AI.