A STUDY ON THE IMPACT OF ARTIFICIAL INTELLIGENCE ON

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A STUDY ON THE IMPACT OF ARTIFICIAL

INTELLIGENCE ON HUMAN RESOURCE

MANAGEMENT

Report submitted in partial fulfilment of the award of the PGDM

Jharna Soni

Prof. Roshan Raju

Assistant Professor, Operations

ABSTRACT:

This competitive world demands for the human resources as a mandatory asset in order to improve the

organizational performance. The organizations have to strive for adopting the innovative HR practices to

improve their performance and be different among its competitors. In near future, HRM is moving from the

traditional way of HR practices to more advanced progress like automation, augmented intelligence, robotics

and AI.

AI has been proved as life – changing for us. From automation of mundane and time-consuming tasks, to the

augmentation and amplification of human capabilities, AI has the potential to drastically transform the way

we live and work. For HR, this is not just an opportunity but also an urgency to adapt and adopt. The HR

professionals today are more towards optimizing the combination of human and automated work to gain a

simple and intuitive work environment. It provides them enough time to deliver the enhanced employee

performance.

To compete with AI and advanced machines, the real challenge now lies within the respective HR department

that how will they train and re-transform their workforce in understanding the AI and collaborating and

working with AI and robotics.

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CHAPTER 1

INTRODUCTION

1.1 Introduction

1.1.1 What is Artificial Intelligence?

Tecuci (2012) mentions that Artificial Intelligence (AI) is a rapidly evolving technology, made possible by

the Internet, that will soon have major impacts on our daily lives. The name of Artificial Intelligence was

verified in 1956 (Stuart & Norvig, 2016). AI traditionally refers to an artificial creation of human-like

intelligence that can learn, reason, plan, perceive, or process natural language. Such traits allow AI to bring

immense socioeconomic opportunities, and socio-economic challenges.

As AI is an Internet enabled technology, the Internet Society recognizes that understanding the opportunities

and challenges associated with AI is critical to developing an Internet that people can trust.

As machine learning is used more often in products and services, there are some significant considerations

when it comes to users’ trust in the Internet. Several issues must be considered when addressing AI, including,

socio-economic impacts; issues of transparency, bias, and accountability; new uses for data, considerations of

security and safety, ethical issues; and, how AI facilitates the creation of new ecosystems.

At the same time, in this complex field, there are specific challenges facing AI, which include: a lack of

transparency and interpretability in decision-making; issues of data quality and potential bias; safety and

security implications; considerations regarding accountability; and, its potentially disruptive impacts on social

and economic structures.

In evaluating the different considerations and understanding the various challenges, the Internet Society has

developed a set of principles and recommendations in reference to what we believe are the core “abilities” that

underpin the value the Internet provides.

Artificial intelligence (AI) has received increased attention in recent years. Innovation, made possible through

the Internet, has brought AI closer to our everyday lives. These advances, alongside interest in the

technology’s potential socio-economic and ethical impacts, brings AI to the forefront of many contemporary

debates. Industry investments in AI are rapidly increasing, and governments are trying to understand what the

technology could mean for their citizens.

1.1.2 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

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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.

(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.

In any enterprise all managerial functions are performed by individuals. No enterprise can function and

achieve its objectives in the absence of efficient and competent employees. Committed, honest, determined

and loyal employees are required not only for the growth but also for the survival of organization. Therefore,

human resource is considered as the most valuable resource of an enterprise.

After deciding what is to be done and how it is to be done through planning and deciding the organization

structure, the human requirement of the organization is assessed. Staffing function starts with the process of

need assessment and goes on to recruit and select people as per the requirement of organization.

Staffing is also considered as a distinct functional area of management just as marketing management and

financial management. Further, success of employees depends upon the quality and stability of the jobs for

which they are appointed. Ensuring same is an important role played by the human resource department.

Therefore, staffing is referred to as both viz “a line as well as a staff activity” i.e. an essential function of the

management as well as a distinct functional area of management.

1.1.3 Artificial Intelligence in Human Resource Management:

AI technologies offer significant opportunities to improve HR functions, such as self-service transactions,

recruiting and talent acquisition, payroll, reporting, access policies and procedures. We are living in an era in

which AI capabilities are reaching new heights and have a major impact on how we operate our business.

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Human resources executives have faith that merging AI into HR administration functions will benefit and

improve the overall employee experience. This will provide more capacity, more time and budget, and more

accurate information for decisive people management. According to Nilsson (2005) machines should be able

to do most of the jobs that human intelligence demands, which he calls for human-level AI.

Humans and learning machines are working together to produce an ever-increasing amount of HR data in the

cloud, and the use of artificial intelligence analyses offer better insight into how to execute and operate. The

success of any organization depends on how effectively it combines people, process and technology

intelligently to deliver transformational value at optimized cost. AI will help to efficiently automate many

back-office functions for reliable HR transactions and service delivery. This document is focused on

conversational AI capabilities for HR transactions and provides insight about intelligent automation via the

technology-agnostic chatbot. The adoption of AI in HRM and in recruiting can be called as ’the new age of

HR’, since AI changes the recruitment industry by replacing routine tasks that have been conducted by human

recruiters (Upadhyay & Khandelwal, 2018)..

What are the barriers to adopting AI technologies? What is causing the slow adoption of AI in this field?

Financial barriers can be blamed for the lack of wider tool implementation to assist in HR administrative

tasks. Other key barriers to AI adoption include:

• Talent gap: it can be expensive and hard to find properly educated or skilled people.

• Concern over privacy: confidential HR data must be accessed securely and available only to the authorized

person.

• Ongoing maintenance: as with other innovative technologies, AI requires deep learning and regular review

and updates.

• Integration capabilities: data availability is limited, due to the HR trend toward SAAS (Software as a

Service).

• Limited proven applications: many products and services are feasible based on proof of concept only.

However, the cost of using AI can be justified for the following human resource functions:

• Reducing the amount of time HR professionals spend on administrative tasks

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• Reducing the burden of shared service centers and help desks by performing HR transactions and providing

answers for routine queries

• Recruiting and retention

• Measuring return on investments

• Reducing bias in HR decision-making

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If organizations wish to remain competitive in today’s global economy, they will need to look at ways to

incorporate conversational AI for HR transactions in their decision-making process. Organizations should rely

on AI to perform administrative duties so that HR departments may become more efficient. HR professionals

will be able to focus more on strategic planning on an organizational level. AI processes data more quickly

than the average human. It is also able to cast a wider net, bringing attention to people who employers might

not have considered or who may not even be looking for work. Having more qualified candidates from the

beginning shortens the process, enabling managers to dedicate more time to analyzing HR data and improving

strategic planning.

1.2 Purpose of 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.

HR is one of the core functions of any organization. Adopting AI in technology in HR might give both short

term as well as long term gains. Some have been witnessed already while others are expected to be witnessed

in the near future.

There are many ways in which AI can play an important role in HR which are as follows:

1. Recruitment

Gusdorf, Myrna (2008) explained that the use of AI technology in recruitment function of HR helps the team

to analyze the resumes received and comparing it with the job description as well as the existing employee with

the same job role and then select the best suitable candidate. This eliminates the human intervention and bias

completely. Thus, AI helps in speeding up of the recruitment process.

2. Talent Management

Every organization has the need of human capital. Talent management refers to the planning done by the

organization to meet the employee’s needs. For this, the HR department undertakes the activities such as talent

management, succession management etc.

Implementing AI in this will benefit the organization in many ways. For example – AI would observe minute

details such as whether an employee submitted their work sample through LinkedIn or Glassdoor. It maintains

scorecards

for all the employees based on its own analysis with zero intervention. This helps the interviewers sort through

the applications ahead of time.

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3. Scheduling

There are many AI based tools like Amy Ingram and zoom.ai which learns from observing employees’

preferences overtime and then manages it in an automated manner for them. It even allows employees to

automate regular tasks like looking for a file and scheduling meetings. By doing so, employees of the

organization can focus on more important and strategic tasks. It ultimately helps in improving the employee

productivity and providing the best result.

4. On boarding Process

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HR can automate many tasks of onboarding that would take hours otherwise. Tools like zoom.ai come here to

rescue as it can collect relevant data from new employees as well as generate their offer, send out the documents

and answer the queries. It saves time and energy of HR department such that HR team can focus on integrating

the employee into mainstream of the organization.

Thus, the purpose of AI adoption in HR is to improve the productivity and efficiency of HR so that it can meet

its core objectives. Hence, it should be kept in mind that the impact of AI technology in HR is to facilitate

employee experience at every level.

1.3 Research Questions

1. Do the software used for hiring process in your organization is based on application of AI or latest

technologies?

2. Are AI - based software helping to find the best talent for the job?

3. Is AI - based software future of HR practices?

4. Is AI easing HR operations?

5. Implementing AI in HR practices will lead to the loss of Human Jobs?

6. Are organizations interested in seeing AI-based software for HR practices?

1.4 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

 To identify the role of AI based software in hiring the best talent from industry

 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

1.5 Limitations of the Study

In order to conduct this study, the following research limitations have been recognized by the researcher:

The main limitation of this research was that a low number of recruitment professional participated in the

survey/questionnaire. Of the 150 Google forms sent out to professionals, only 19 replies were received.

However, response rate of 20% is acceptable if the information collected is of good quality. In order to collect

and analyze

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the data from the respondents, the research requires a high amount of time. However, this study has a particular

deadline, which increased limitation in data analysis.

Secondly, respondent error is another limitation which can occur. Participants may make mistakes when

filling information in the questionnaires. In order to combat this, the questions provided in the questionnaires,

were easy to understand and left little room for confusion.

There are chances that the employees might have misinterpreted the questionnaire also. (Source – ideal.com,

2019)

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1.6 Statement of the Problem

To study the Impact of Artificial Intelligence on Human Resource Management.

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CHAPTER 2

LITERATURE REVIEW

2.1 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

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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 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. 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.

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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. Some of the start-up's that have integrated its business with AI in India are:ARYA.ai,

BOXX.ai, cuddle.ai, Imbibe, Edge networks, and Haptic to name a few.

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2.2 Research Gap

There is a particular gap regarding the recruitment and selection processes in the industry. The studies

available shows the general HR practices related to job satisfactions, organizational performance and

productivity rather than hiring methods and technologies used for hiring. Most of the previous researches are

based on how IT is transforming HR process, which is very broad area. Though AI is an application of IT, but

is relevantly different.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Design

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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:

1. Descriptive research is used to describe characteristics of a population or phenomenon being studied.

It does not answer questions about how/when/why the characteristics occurred. Rather it addresses the

"what" question (what are the characteristics of the population or situation being studied?). The

characteristics used to describe the situation or population are usually some kind of categorical scheme

also known as descriptive categories.

In our topic there is need for data collection which will include population. So, we would be selecting this

design for research.

2. Correlational design research: This seeks to discover if two variables are associated or related in

some way, using statistical analysis, while observing the variable.

3. Experimental design research: This is a method used to establish a cause and effect relationship

between two variables or among a group of variables. The independent variable is manipulated to

observe the effect on the dependent variable. For example, a certain group is exposed to a variable and

then compared with the group not exposed to the variable.

Qualitative Research - A qualitative research design is used to explore the meaning and understanding of

complex social environments, like the nature of people’s experience, using case studies. Qualitative research

design, on the other hand, is exploratory in nature as it tries to explore not to predict the outcome.

Research Methodology: Research methodology is that the specific procedures or techniques used to identify,

select, process, and analyze information a few topics. In a research paper, the methodology section allows the

reader to critically evaluate a study’s overall validity and reliability. Sociologists draw on a spread of both

qualitative and quantitative research methods, including experiments, survey research, participant

observation, and secondary data. Quantitative methods aim to classify features, count them, and make

statistical models to check hypotheses and explain observations. Qualitative methods aim for an entire,

detailed description of observations, including the context of events and circumstances.

Questionnaires: Questionnaires are an honest thanks to obtain information from an outsized number of

individuals and/or people that might not have the time to attend an interview or participate in experiments.

They enable people to require their time, believe it and are available back to the questionnaire later.

Participants can state their views or feelings privately without fear about the possible reaction of the

researcher. Unfortunately, some people may still be inclined to try to give socially acceptable answers. People

should be encouraged to answer the questions as honestly as possible so on avoid the researchers drawing

false conclusions from their study.

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Questionnaires typically contain multiple choice questions, attitude scales, closed questions and open-ended

questions. The drawback for researchers is that they typically have a reasonably low response rate and other

people don't always answer all the questions and/or don't answer them correctly. Questionnaires can be

administered in a number of different ways (e.g. sent by post or as email attachments, posted on websites,

handed out personally or administered to captive audience (such as people attending conferences).

Researchers may even plan to administer the questionnaire face to face which has the advantage of including

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people that have difficulties reading and writing. In this case, the participant may feel that s/he is participating

in an interview instead of completing a questionnaire because the researcher is going to be noting down the

responses on his/her behalf. We are going to use the Questionnaires method for the study. As it can get data

from large number of people and it can help us getting the honest opinions of the people.

Theories and literatures have been searched to support the research. Next, the problem and the research

question has been developed and research method has been elected. The next step is to collect data with using

the methods planned. After the data is collected, the researcher has analyzed the data with selected theories.

At last, the conclusion is drawn.

The research methodology adopted for this paper is a mixture of both qualitative as well quantitative research

methods.

The data for the research have been collected through the primary source of data by creating a questionnaire

and conducting a survey among the respondents. The data has also been collected from secondary sources of

data which includes the previous publishes papers as well as the articles and blogs of well-known authors.

The qualitative research methodology has been used in the sense that the record keeping method in has been

used by taking reference from the past published related papers and the articles.

3.2 Data Collection

This study utilized both primary and secondary data. The primary data was gathered with the help of a

structured questionnaire. The questionnaire was distributed to 150 respondents. After considering the

reliability and the plausibility of the data, 19 completely filled questionnaires were used for data analysis. The

secondary data was collected from articles, journals and PDF’s. Primary and secondary data was interpreted

and analyzed to arrive at logical conclusion.

3.3 Data Analysis Tool

SPSS tools was used for data analysis. Cronbach’s alpha was used to determine the reliability and internal

consistency of the questionnaire. Then the data was analyzed using multiple linear regression. This analysis

was conducted to determine the effectiveness of the research model in assessing the impact of Artificial

Intelligence on HRM and HR practices and also to find out if the impact was significant.

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3.4 Research Model

Figure below represents the research model used in this project. The independent variables in this research

model are Artificial Intelligence technologies and software. The dependent variable used in this study is HRM

and HR Practices.

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Figure 1: The Figure above shows the Research Model adopted for the study

3.5 Research Hypothesis

H0 (Null): AI does not have a significant impact on HRM

H1 (Alternative): AI has a significant impact on HRM

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CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 Respondent’s characteristics analysis:

This section includes the analysis and interpretation of the data collected from the questionnaires. The

questionnaire was distributed to 150 respondents.

HR Based Practices:

 HR Operations

 Recruitment

 Hiring

 Shortlisting

AI Based Software,

tools and

Technology

Eases HR Operations

Future of HR

Finding the best talent

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After ensuring the integrity and the reliability of the data, 19 responses were received and analyzed. The first

part is the age, occupation and organization analysis of the respondents.

Out of 19 respondents, 15 respondents (78.9%) ie majority of the respondents belong to the age group of 20

– 30 years followed by the age groups of 31 – 40 years and 51 years & above. This is shown in figure 1 given

below.

Figure 1: Age analysis of the respondents

From the figure 2 below, the occupation of the respondents can be analyzed. Majority of the respondents are

corporate employees (31.6%) followed by other category (31.6%) and the business category (26.3%). The

least number of the respondents belong to the working professional category.

78.90%

10.50%

0.00%

10.50%

Age Analysis

20 - 30 years

31 - 40 years

41 - 50 years

51 years & above

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Figure 2: Occupation analysis of the respondents

From the figure 3 given below, the occupation of the respondents can be analysed. Majority of the respondents

(57.8%) do not lie in the mentioned categories and lie in the other sector that includes Education sector,

Pharmaceutical Sector, Journalism, Engineering sector, etc. This is followed by the Manufacturing sector

(15.8), Retail Sector (10.5%), IT, Automobile and Consulting Sector occupying 5% each.

Figure 3: Occupation analysis of the respondents (sector wise)

26.30%

31.60%

10.50%

31.60%

Occupation Analysis

Business

Corporate

Employee

Working

Professional

Other

5.30%

15.80%

5.30%

10.50%

57.80%

Occupation Analysis

Manufacturing

Consulting

Automobile

Retail

Other

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4.2 Reliability analysis of the survey instrument:

The survey instrument used for this study was a structured questionnaire. The questionnaire was drafted by

using Likert scale. These questions were drafted to gauge the usage of Artificial Intelligence technologies in

HR Practices in organizations and their impact on the Human Resource Management.

Cronbach’s alpha was utilized to measure of the reliability and internal consistency of the survey instrument.

This method also helps to understand if the items in the questionnaire have shared covariance. According to

the output table 1, it can be seen that the Cronbach’s alpha is 0.754. This value is greater than the standard

value of 0.7 which shows that the questionnaire is reliable and have an internal consistency among the

questions. This test showed that all the questions have a shared covariance which proves that they all help to

understand and measure the same concept of sustainable HR practices.

Table 1: Cronbach’s Reliability Test Output

Cronbach's Alpha

Cronbach's Alpha Based on

Standardized Items

N of Items

.754

.688

4.3 Analysis of the impact of AI on HRM

After checking the reliability and the consistency of the questionnaire, the impact and significance of Artificial

Intelligence on HRM and HR Practices was analyzed. Multiple regression analysis was used to understand

the effect of the. For this study, Artificial Intelligence technologies and AI based software were taken as the

independent variables and HRM & HR Practices like HR Operations is taken as the dependent variable. Table

2 shows the R square value of the model and this value helps to understand if the research model undertaken

is a good fit for the research data and it also explains how much variability of the dependent variable is

explained by the independent variable. From table 2, it can be seen that the R square value is 0.622. This

means that 62.2% of the variability of Human Resource Management can be explained by Artificial

Intelligence.

Table 2: Model Summary

Model

R Square

Adjusted R Square

Std. Error of the

Estimate

.789

.622

.506

.99387

Table 3 shows the ANOVA test output which helps in understanding if the independent variables used in this

model is effective in predicting the dependent variable. From table 3 it can be seen that the sig value is 0.009

which is less than the standard p value 0.05. So it proves that the independent variables chosen for this model

(Artificial Intelligence technologies and software) are helpful in determining the dependent variable which is

HRM & HR Practices.

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Table3: ANOVA

Model

Sum of

Squares

Mean

Square

Sig.

Regres

sion

21.159

5.290

5.35

.009

Residu

12.841

.988

Total

34.000

Table 4 shows the regression test output. This helps to determine the significance and the effect of Artificial

Intelligence on Human Resource Management and HR Practices. It also shows the relationship between AI

and HRM. From table 4, it can be seen that the sig value for all the independent variables (familiarity with AI

introduction – 0.005(, and (agreement of AI software helping in finding the best talent for the job – 0.011) is

lesser that the standard significance value of 0.05 which proves that these factors are significant and have a

significant effect on HRM. But the other two factors have the value greater than 0.05, which shows that

currently their organizations do not use AI based software for HR Practices. From table 4, it can also be seen

that the beta values for the factors except the usage of in-house software or third party software are positive.

This implies that these factors are positively related to HRM and HR Practices.

So, on the basis of the analysis performed, the hypothesis H1 stating that AI has a positive and significant

impact on HRM can be accepted.

Thus, the H1(Alternate) hypothesis is accepted and H0(Null) hypothesis is rejected which means that

Artificial Intelligence has a significant impact on Human Resource Management.

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Table 4: Multiple Regression Output

Model

Unstandardized Coefficients

Standardized

Coefficients

Sig.

Std. Error

Beta

(Constant)

3.571

1.380

.023

Do you have in-house

HRM software or you rely

on third party software

systems for hiring?

-.836

.489

-.302

.111

Are you familiar with

introduction of AI in hiring

practices?

.915

.273

.587

.005

Do the software used for

hiring process in your

organization is based on

application of AI or latest

technologies?

.288

.299

.178

.353

To what extent do you

agree that AI-based

software are helping to

find the best talent for the

job?

.777

.263

.529

.011

CHAPTER 5

FINDINGS AND CONCLUSION

5.1 Findings

1. Majority of the organizations have adopted the AI in their Human Resource Management practices.

2. There is a positive response from the respondents that they are likely to accept the introduction of AI

at various stages of HR based functions.

3. Organizations are using the third party software, in house software, Omnidocs, Ezieka, etc as AI

software in HRM.

4. Majority of the organization is positive for the fact that AI is the future of HR.

5. Organizations which are not using AI based software would like to adopt the same in future.

5.2 Suggestions

Researchers would like to suggest that companies devise a simple and concise organizational strategy to

integrate AI into their recruitment process, based on the results of this study. Researcher would like to

recommend that recruiters should replace easy and time-consuming tasks with smart AI technology, allowing

recruiters and HR managers to concentrate more on strategic functions. Furth more, developers of smart AI

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technologies needs to develop such platforms keeping in mind the budgetary issue of small to medium

organization as well, so that they can adopt AI in their recruitment process.

5.3 Conclusion

The incorporation of HR activities for candidates based on AI undoubtedly has a greater effect in enhancing

the efficiency of the organisation. Although AI applications do not possess emotional and cognitive abilities

like humans, these powerful AI-based HR applications may be able to interpret, forecast, diagnose, and it is a

powerful tool for any kind of organization.

Yet the real concern that is overwhelming the Global workforce is how AI is demonstrating its impact in

cutting jobs across various industries around the world. But, the truth is that it's not the advanced technologies

that replace humans, but it's more about how humans can adapt and use these developments in wealth and

prosperity development.

In the true sense, the AI-based functions would affect certain percentage of workers, and it is the responsibility

of HR leaders and companies to reflect on their employee needs and future outcomes. And, eventually, based

on our research, most companies effectively incorporate AI-related methods into recruitment, but AI is

everywhere in HR in the near future: May be in recruitment, training, on boarding, performance analysis,

retention etc.,

But most companies are still lagging behind in incorporating AI into their HR activities due to their

integration-related costs. In conclude, the application of AI should be regarded as a positive opportunity,

because AI improves life, AI produces a better future if it is clearly understood and properly used.

REFERENCES:

 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%20that

%20branch%20of,the%20achievement%20of%20organizational%20goals.

 file:///C:/Users/Admin/Desktop/BI%20research%20paper/AI%20&%20HRM%20Questionnaire.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

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167

ANNEXURE

QUESTIONNAIRE:

Below is the questionnaire used for the research:

Name:

Age:

Occupation:

1. Do you work in a private recruitment agency or HR in an organization/company?

A. YES B. NO

2. In which sector does your organization operate?

a. IT

b. Manufacturing

c. Consulting

d. Automobile

e. Retail

f. Other

3. Do you use modern technologies for e.g. AI-based screening software, Database management

software, etc. in your Hiring process?

a. Yes

b. No

4. Do you have in-house Human Resource Management (HRM) software or you rely on third-party

software systems for Hiring?

a. In – house Software

b. Third Party software

5. Are you familiar with introduction of Artificial Intelligence in Hiring practices?

a. Yes

b. No

c. Maybe

6. Do the software used for Hiring process in your organization is based on application of Artificial

Intelligence or latest technologies?

a. Yes

b. No

c. Maybe

7. At how many stages of hiring process do you use such software? (You can select more than one

option)

a. Resume Shortlisting

b. Online Assessments

c. Video Assessments

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d. Entire hiring process

e. Other process

f. None of the above

8. To what extend do you agree that AI-based software are helping to find best talent for the job?

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

9. Do you think that AI-based software is future for hiring practices?

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

10. Do you think that Artificial Intelligence is easing Human Resource operations?

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

11. Do you now or in future will be interested in seeing AI-based software for hiring practices?

a. Yes

b. No