Project Report on Contemporary Issues

ON

Challenges and Opportunities for HR Department in an Era

of Artificial Intelligence

Submitted to:
M.S PATEL INSTITUTE OF MANAGEMENT STUDIES

In partial fulfillment of the requirement of

MASTER OF BUSINESS

ADMINISTRATION (MBA)

BY

NIHAR SHAH (ROLL NO: 52)

(MBA - HR) (2017-2019)

M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES

Faculty of Management Studies
The Maharaja Sayajirao University of Baroda
 Declaration
I, Nihar Shah, hereby declare that this report is prepared on the basis of my research topic on
challenges and opportunities for HR department in an era of Artificial Intelligence as part of
Contemporary Issue subject. I ensure about the authentication of the material and give
assurance that there will not be any misuse of the data. Data used will only be taken for
academic purpose and will not be used for commercial or any other purpose. Views mentioned
in the report are my own and are based on my observation and it may or may not be accepted
by anyone.

Date: Nihar Shah

 Acknowledgement

I sincerely thank Prof. (Dr.) Jayrajsinh D. Jadeja (Dean, Faculty of Management Studies, M.S.
University, Baroda) for giving me this wonderful opportunity of doing research as a part of my
curriculum.

I would like to thank my subject professor Dr. Sunita Sharma (Asst. Professor, Faculty of
Management Studies, M.S.U, Baroda) who gave me guidance and prepared a base and
understanding for the topics. I thank her for their extended support which she showed in
clearing up all my doubts and in giving me a clear vision.

I am thankful to and fortunate enough to get constant encouragement, support and guidance
from my classmates who helped me in successfully completing my project work.
 Index
Sr. No. Particular Page No
1 Introduction 1

2 Literature Review 3

3 Research Methodology 6
Challenges and opportunities for HR
4 7
department in an era of Artificial Intelligence

Finding, Conclusion, Limitation and Future

5 15
Scope of Study

Reference
 Abstract
The aim of this paper is to examine the challenges and opportunities that HR department is
going to face with implementation of Artificial Intelligence (AI) in its operations. AI is a reality
today. Nowadays, organizations are operating in highly competitive environment. Some giants
in their respected fields like Wipro, Infosys, TCS have started automatization of HR. But many
HR people are still fearing losing their job with implementation of AI. Where majority of the
sections have adopted technology with open arms, automation in HR is the need of the hour.
One thing should be noted that in any organizational process human intervention and decision
making is always needed. Technology is there to transform HR and not to make it redundant.
After all AI is just an extension of that technology. Further research articles, conceptual studies,
review papers and other relevant content on the topic were accessed and reviewed through web
sources to achieve the objectives of the study. This study contributes to existing literature by
elaborating the effects of implementing AI in HR’s daily operations. How beneficial it would
be and what changes it will bring to HR’s conventional work. There always come challenges
with something too beneficial. This study also discusses few of the consequences that HR will
have to face in order to use AI effectively. Limitations and future scope of the study is also
discussed.

Keywords: Artificial Intelligence, Machine Learning, Technology, HR Functions

1. Introduction
“Digital is not the cherry on the cake. It is the new cake.” (Agon, J.P)
Artificial intelligence (AI) is the simulation of human intelligence processes by machines,
especially computer systems. These processes embody learning (the acquisition of knowledge
and rules for using the information), reasoning (using rules to reach approximate or definite
conclusions) and self-correction. Particular applications of AI include expert systems, speech
recognition and machine vision. (Rouse, Margaret, 2017)
The concept arose in 1950, and soon became popular among the forward looking techies,
whose purpose was to build an intelligent machine which in future can learn and imitate the
human intelligence and replicate its most of the activities. Later it was gradually applied in the
fields of movies, space travelling and especially in automobile. While large number of
industries, now have started depending on AI for its several operations, HR has been slow to
adapt, as most of the activities in HR were felt to need human intervention. But with the
introduction of various robots and programs, many repetitive and monotonous HR functions
also got mechanized.
Human Resources, as a function has undergone significant transformation over the past few
years. The technology keeps on updating the way Human Resource functions operate but the
fundamental remains the same. The changing dynamics of success stories moving from
initiatives to sustenance of the tacit knowledge of human resource has been missed and from
time to time the technology advancement is taking place and there lies the future challenge.
But use of new technology and sensitive approach has the ability to bring in the change in some
of the tedious and difficult work of HR and this is where AI is playing major role in the industry
especially in recruitment.
Let’s make one thing clear that with the use of technology, people are not going to lose their
jobs. Technology is there to transform HR and not to make HR redundant, same as computers.
Computers are there to ease up the tedious work and not to work on behalf of any one. After
all AI will just be an extension of technology which many of HR already use in their houses be
it Cortana, Alexa or any other. It’s a small wonder that majority of them see AI as the
technology that has the potential to revolutionize key HR responsibilities, such as recruitment,
performance evaluation and education.
So, as rapidly it is getting adopted by the other industries, use of AI in HR functions is
inevitable. Many organizations who are giants in their respective fields have started to
introduce technology to their HR functions and some are still reluctant. Therefore the growth

1
rate is slow. But it is a myth that introduction of AI will cause some people their job.
Technology is there to help human and not to unemploy them. Use of AI will help to ease up
the job of HR people. HR functions like talent acquisition, performance evaluation etc. will be
performed more effectively and efficiently.

2
2. Literature Review
 Agarwal, Narendra (2003) in his research paper stated that human resources since its
inception has grown at some serious pace. Today it operate in a knowledge intense
industry, where knowledge workers hold the key to their future and therefore HRM
philosophy and systems they use decides its survival and growth. Indian Software industry
is still growing and according to the software experts, HR department is more inclined
towards maintenance then development. To sustain in globalised economy, its important
to adopt globalized approach and that means to adopt technology in HR functions.
 One of the article in ‘People Matters’ magazine concluded that the advent of AI in HR
operations have always scared HR people of losing their job. But one thing should be noted
that in any organization process, human interventions and decision making is always
needed. AI offers great benefits, like capacity to assimilate and analyse large amount of
data, reduces the human input and chances of error. Those HR teams who already have
applied AI to its operations reporting impressive results. Volume recruiters are using it to
assess the responses to screening questions. Reduction in time is greatest competitive
advantage especially when you are dealing with limited resources.
 Bhasin, Suparna (2015) found in her article that you can’t live with it or without
automation. Wipro, Infosys and TCS have lost around 100,000 employees in past one year.
Businesses are hugely investing in technology. Financially successful firms are now
allocating more resources to technology without any plans of slowing down in future. It is
true that technology increases productivity, capabilities, and makes a competitive
difference, it is a major reason for attrition. Either employees are laid off or they leave due
to lack of new technical skills required. It is seen that number of employment opportunities
have also decreased and lower end jobs are getting automated. The entire focus has been
shifted to domain specific knowledge, soft skills and then technical knowledge. But the
impact of technology is different on different sectors. Budget of each business also a
determining factor whether the jobs will be replaced by technology is not. Experimentation
with different techniques and business models requires flexibly, which is the prime
advantage of having a human workers.
 Arora, Vikas (2018) stated that Artificial Intelligence is a reality today. And use of it in
routine work is changing the overall workplace experience. With the invention of 3D
printing, Internet of Things (IoT), Virtual Assistant, smart algorithms, use of intelligent
software, HR field and its functions also haven’t been left behind. It is also posing a

3
 challenge for the traditional way of carrying out business. There is change in way of
operations with introduction AI in different sectors, which has made it errorless and more
dynamic. The role played by HR is not going to be redundant soon in the coming times
but it certainly will have to mould itself to fit in with the latest technology.
 Tripathi, Roma (2017) concluded that in current scenario, transformation is needed, not
only in policies or structure, but the way it operates as well. HR department has elementary
role in personnel recruiting, orientation, performance evaluation, compensation and so on.
Performance measure is one of the major feature in any organization’s success. That’s why
every organization needs to innovate their HR practices. Social media plays important part
in retaining as well as recruiting new talent. Digitization has started organizing task
differently. In a nutshell every organization is strongly committed to put the technology
forward.
 Singh, Dilpreet (2017) found that HR functions in last few years have changed drastically.
With globalization, many a foreign companies have entered the Indian market and also
have brought some technological advancements in HR. New models have come into
existence. These changes are posing new challenges to HR professionals as well as HR
functions. An organization’s competitiveness will depend on talent readiness, skill sets and
thought diversity. How skills can be applied dynamically within the organization has
become more important. Skill will become new currency and skill based wage
dissemination will increase.
 Long, Yu (2009) has stated in his research paper that technology plays an important role
in major HR strategic tasks. It is changing the traditional way of managing HR functions
and enabling and empowering HR to carry out its operations and management activities at
any level without further hindrance, the top management, employees etc. Apart from
dealing with Information transaction, other strategic HR activities such as workplace
learning, career management, Business processing engineering etc. are better developed
and maintained by technology, that adds more value to the HR functions and help HR to
reach on a more valuable position.
 Mishra, Alok (2010) concluded that as consequences of advancement of technology, all
the e-HRM organizations have reduced their costs of providing services and has
increased the productivity. That way they have become more competitive. Modern
business and industries are taking suitable steps to accommodate technology in major
management decisions in every existing department. Though there is no standardization

4
in the integration of software into main HR activity. In general, organizations don’t have
portals exclusively for HR functions and use different computer software for similar
HRM functions. HR department should concentrate more on educating and training their
employees in the HRM department in the area of technology.

5
3. Research Methodology
Objectives of the study
Objectives of the study are :
1. To explore role of HR department in an era of AI
2. To explicate opportunities HR department has by implementing AI in their routine
functions?
3. To find challenges HR department will face by having AI in their day to day
activities?
Problem of the Study
Human Resources, since its inception has grown at some serious pace. Today it operate in a
knowledge intense industry, where knowledge workers hold the key to their future. We
currently are living in technological era. Artificial Intelligence (AI) is a reality today. You
can’t live with or without automation. Use of it in routine work is changing the overall
workplace experience. It is true that technology increases productivity, capabilities, and
makes a competitive difference, it is a major reason for attrition. Giants in their respective
fields have lost bulk of their employees due to it. Advent of AI in HR operations have always
scared HR people of losing their job. But technology plays an important role in major HR
strategic tasks. It is changing the traditional way of managing HR functions and enabling and
empowering HR to carry out its operations and management activities at any level without
further hindrance, the top management, employees etc. AI has been introduced to HR and
being at its initial level it is necessary to know what is the future of HR with AI? What are
different challenges and opportunities that HR department will face/is facing in an era of AI?
Rationale
In current scenario, transformation is needed, not only in policies or structure, but the way it
HR operates as well. Other departments of the organization have adopted technology and
they are getting positive results as well. HR department has elementary role in personnel
recruiting, orientation, performance evaluation, compensation and so on. That’s why every
organization needs to innovate their HR practices. And to innovate, organization should have
knowledge about the challenges and opportunities it pose.
Data Source
Secondary data is used for this study. The data is obtained from research articles, conceptual
studies, review papers and other relevant content on the topic from the web also.
Research Design: The study considering its objectives & data source kept as conceptual one.

6
4. Challenges and Opportunities of HR in an era of Artificial
Intelligence
The future is of AI but unfortunately, according to many reports and researches done on HR
and AI, HR is ill-equipped to make that happen in an organization.
Some of the companies like IBM, PWC and Deloitte have conducted surveys in past 18 months
and the conclusion is rather same and clear: Organizations want AI, but they lack talent,
leadership and confidence to make that happen in their Human Resource team.
IBM predicts that for companies to sustain or regain their competitive advantage, they will
have to reskill around 120 million workers of world’s 10 largest economies to survive future
AI driven marketplace and that too will be needed to be done soon. Its report “Unplug from the
past” suggest that only 28 percent of CHROs expect that their workforce is capable to adapt
changing demographics with new updated strategies.
For the obvious reasons companies are now gearing up for reskilling their workforce, but
almost half of their Human Resource think they are not good enough to pull that off. A study
conducted by Harris Insights in collaboration with IBM stated that around 80 percent of
workforce in UK and US think that AI skills can be proven a competitive advantage and 42
percent of them think that their HR department can’t execute that.
“2018 Global Human Trends” a report by Deloitte, stated a similar lack of confidence where
72 percent of the respondents agreed that AI is essential now for business while only 31 percent
of them shown readiness to tackle all the hardships which will come with the changing trend.
Research of pwc shows that 63 percent of the companies are rethinking the role of their HR
department having knowledge of impact of AI on their business in future.
A major reason to this crisis is historic lack of experience with data and analytics, said David
Mallon, chief analyst for Bersin by Deloitte. He said, “Every other part of the organization is
accustomed to using data to support decisions, but not HR. They lack data fluency”.

HR’s Evolving Role

Things need to be changed from HR side. If they want to be relevant to their organization’s
operations, they need to think strategically about their roles. They need to think more about
data driven decisions and they need to convert their roles into a human teachers for the machine.
That should be begun with change in culture, where data is used to take decision about people,
like finance department take decisions based on data, and production department uses data to
manage supply chain.

7
But here HR department’s problem is not only to use data but also to skill people for that. It
also need to think about how the data can be used.
It is important to now that employees don’t want to be given the whole book type of syllabus
to learn a new skill instead they need a crisp summary type of content that saves their time and
they learn a new thing as well. AI can be used in that. Apart from that by analysing the dataset
provided, AI can conclude the skill gap employee has, and also stated how to customize a
learning and development path.
The transition is not going to be easy. It will require HR personnel to upgrade their skillset too
with upskilling their workforce. It may sound overwhelming, but it need not be. The thing here
is to get started. Starting little can enable unit of time to either fail quick or prove the
advantages of AI — and their own ability to leverage it — which can facilitate them win
over stakeholders and bolster the workforce’s confidence in their ability to navigate this digital
transformation.

AI in Recruitment
Since the Application Tracking System (ATS) has arrived, Recruiters especially have
leveraged technology to make their work easier, better and faster. Use of AI in recruitment
aims at reducing or even removing time consuming activities like screening of resumes
manually.
Screening of resumes is still the most cumbersome task and biggest challenge in talent
acquisition process. According to the research, 52 percent of talent acquisition leaders says that
finding the right talent from large pool of candidate is the most difficult part in talent
acquisition.
Here is the text that indicates how HR professionals can use AI to automate the workflow, to
engage, screen and assess candidates more swiftly and effectively.

What is AI for Recruiting?

AI for recruiting is the application of artificial intelligence, problem solving and learning that
a computer can offer, to the function of recruitment.
The new technology is designed to automate some of the repetitive or redundant and high
volume task of recruitment.
For example, software that apply machine learning or AI to the resumes to auto screen
appropriate talent from vast pool of candidate or software that conducts behavioural analysis
on job descriptions to find potential candidate.

8
“Any area of recruiting where distinct inputs and outputs occur – like screening, sourcing and
assessments – will largely become automated.” – Katrina Kibben, Randstan

Opportunities of using AI in Talent Acquisition

Saving recruiters’ time by automating redundant and high-volume: Talent acquisition experts
have said that recruitment will increase the next year but the size of the recruiting team is going
to remain same or may be less. That means recruiters are expected to become more efficient.
Manually screening resumes is the most cumbersome and time-consuming process of
recruiting. Finding the right talent from a bunch of application is tough, especially when 75 to
88 percent resumes received, don’t even qualify the criteria. Screening and shortlisting
candidates for the interview approx. takes 23 hours of one recruiter for a single hire.
Automation has emerged as a boon for theses recruiters. AI successfully minimizes these time
consuming, redundant tasks. The best AI-powered technology will be designed in a way that
not only will automate a single part of the process but will integrate seamlessly with your
current task that it doesn’t disrupt the workflow.
In addition, it will also reduce the time of recruiters for one hire, which will enable team not to
lose best talent in this competitive world.

Improving quality of hire through standardized job matching: Quality of hiring has remained a
recruiting KPI black box, because of lack of data of what happen to the candidates after they
get hired. But as collecting, analysing and accessing HR data has become relatively easy over
the last few years. So, hiring quality has become one of the main KPI of recruiters.
Improvement in hiring quality is because of AI’s ability of using data of standardize the
matching between candidates’ experience, knowledge and skills and the requirements of the
job. This improvement in job matching leads to happier employees which are less likely to
turnover.
Early results are very promising. Companies which have used AI-powered software in
recruiting, reported reduction in cost per screen by 75 percent, and increase in revenue per
employee by 4 percent. Their turnover decrease by 35 percent.

Challenges of applying AI in recruiting

AI requires a lot of data: AI, in general require a lot of data to accurately mimic human
intelligence.
For example, software that uses AI to screen resumes may need hundreds or thousands of
resumes for accurate results for one job role.

9
AI can learn human biases: One of the reasons to use AI in recruiting process is that it ignore
the biases as well like age, gender, race etc. But AI is also trained to find patterns in previous
behaviour. Which means if there is any human bias already present in the recruiting process, if
its unconscious, It may be learnt by AI as well.
Skepticism of new technology: HR professionals are generally bombarded with the latest and
greatest trends that disappears as just quickly. Understandably, recruitment and talent
acquisition leaders are skeptical in any new technology that promises to make their work easier.
How AI will change the recruiters’ role
Industry experts believe the future of AI for recruiting is Augmented Intelligence.
Augmented Intelligence means, you can’t fully replace human capabilities with technology,
instead it indicate that we should look technology to enhance human capabilities and efficiency.

AI in Training and Development

AI is improving training and development area in the organizations. AI intervention has
improved the way of teaching and as a result, trainees are now able to learn more efficiently.
AI is providing a chance to personalize learning.
Companies have always tried to improve their training methods and that’s why training and
development portion has evolved continuously. With AI to be considered as future,
organizations have now implemented technology to training and AI has made data interpreting
and customer learning so easy that many companies have now started to apply AI in more or
less manner.
There are several ways, AI is improving training part. One of which is that it allows the
employees to design the training process according to their will and need, which is directly
connected to employee engagement and they are seen as unique individuals. AI also learns the
trainees’ learning style and adjust the whole scenario reflecting to that. It also provides more
detailed reports of effectiveness and ROI.
The aim of training programmes are obviously to get more return and to know the learning
ability of an individual and how the skill of that employee has improved for future work. AI
measures the level of engagement employee has with the training program and also designs
quizzes and assignments after completion of the training and to check how effective the training
was. This increases enjoyment of the employee and program’s capacity to teach.

Future of Training and Development

AI is adding context, relevance and personalization in corporate training. It is also improving
feedback training program provide to employers and creating immense opportunities for

10
employee development. Future AI will also add the 3D aspect in training. Also, the cost of
virtual reality is going down. Employers in the future will be able to provide hands-on
experience to any scenario. AI will also be used as virtual mentors. When workers are
additional targeted throughout the training experience, they retain the information they’ve
learned better.
AI in E-Learning Systems
AI is making its impact on online schooling for children to online training for adults. AI is
allowing the person to learn at his desired pace, and also it enables teaching software to analyse
user and improve content for the future user and also improve the testing methods as well.
AI is more comprehensive than typical classroom curriculum. It can create immersive exercises
related to respected topic to help user learn better. These variety of real life incidents or
examples helps to understand the concept better than just the materials and theories.
The future of company learning is up with AI and also the use of AI in coaching. Artificial
intelligence in learning and development is permitting individuals to retain and perceive
information in additional comprehensive ways.

AI in Performance Evaluation
It is a common knowledge that, most of the employees fear the year end performance review
and feedback, but very little known that organizations also are not happy and satisfied with
their current prevailing performance review management. According to a study conducted by
Forbes, only 6% of the companies think that their current performance evaluation system is
worthwhile. They are also aware of the fact that, the whole process is impaired with the
subjectivity of the evaluator and possible biases that they can have while reviewing the
performance and that’s the core reason why employees don’t generally get satisfied with the
result they get after the evaluation process get done. As a result organization goals also are not
met.
BetterWorks is an AI solution to such problems like performance review and goal setting. It
accurately provides 360 degree feedback and performance measurement. It relies on hard data
and it processes way more variables then a human HR can process. Chances of biases creeping
in are negligible. One good thing about using AI here is that it provides performance
measurement real time. So, if any employee is doing really good and achieving his goals, then
he can be rewarded instantly and it will be considered as positive reinforcement. And in case
where an employee is not getting near to his set goals, additional support can be provided in
real time that it doesn’t get too late before the problem goes out of control. Apart from that

11
many employees feel motivate also to see how their work is helping organization to progress
towards achieving its goals. With use AI, employees are able to mark their minutest of actions
affecting the bottom line of the organization.
Implementing AI will increase satisfaction level in employees as they know that, the system
will now be working purely on enough amount of data and it will be a continuous feedback
process. More importantly it won’t come as a shock at the end of the year for employees.
Argument against using AI in performance management system is that whether it will be
appropriate to export such valuable and sensitive data about employees into the software of
Artificial Intelligence? Only risk of using AI here the privacy of the data which need to be
safeguarded. Because of so many data is collected, it becomes necessary that it is only used for
the purpose it was intended to and must be kept confidential at all times.

AI in Employee Engagement
In this brutally competitive talent ecosystem, when an employee leave an organization early or
within six months or a year of his joining, It becomes a headache for the HR managers, how to
improve this situation especially after spending handsome time and amount for that one hire.
HR experts from AI, not just are expecting a good recruiting but also expect to change the
whole lifecycle of employee experience. i.e from job application to exit interview.

Rate of job hopping has increased. Average time a worker stays in an organization is less then
two years now, and the stakes are higher than ever.

Engaging your team

Part of the reason for employee dissatisfaction at workplace is that almost all the organizations
are going through periodic turbulence mainly because of advancement in technology. Jobs are
being created and then getting vanished. It is very hard to find an organization which is stable
from more than three or four years.
One positive side if seen that AI is an part of the technological advancement as well. ‘Vibe’ is
an algorithm that watches and analyses all the keywords and emojis that employees send to
each other to gauge that whether the team is happy, stressed, irritated or disappointed. ‘Keen’
is also another AI or an algorithm that sees the emails sent by the employees, identifies the
word patterns and analyses the mood or emotions based on that.
Some other algorithms are ‘ADP Compass, Kanjoya, Humu etc. which gives the manager data
about employees’ moral and also suggests the ways of how it can be boosted.

12
AI in Onboarding
Needless to say that Onboarding process plays an important part in employee retention.
Onboarding is the process where the new joined get to know about the organization, its values,
culture, compliances etc.
There are many best onboarding activities prevailing among organizations. Buddy system is
one them. Where the new joined is assigned a co-worker whom he can ask about anything and
that co-worker from his end too tries to make the new joined well-informed as well.
AI’s role in onboarding is quite similar. It is the single point access for company information.
And it can be in any form, from a chat agent to a web browser. AI stores the information and
deliver it to the employee when asked about. It also gives information about all relevant
subjects that the new joined might be concerned with.
Apart from that AI can be useful in HR related things like generating the offer, sending out the
paperwork, answering company-wide policies like vacation days and pay. In IT related things
like setting up the printer, setting up the password etc. and relationship-building things like
finding a list of people you should speak to, setting up coffee dates with team members etc.
AI can help the HR department to improve a new employee’s transition into the organization.

AI in Employee Retention
Better Work-Life Balance Through Customized Scheduling: Providing employee satisfaction
is the foremost thing to retain any employee in your organization. Work-Life balance is the
most important factor for employee satisfaction. Employees want more say over their usual
work, and AI can help to give the employees that autonomy and still ensures, goals of the
organization are met.
In scheduling arena, it is made sure that whatever schedule is designed is balanced, fair and
equitable that meets employees’ as well as company’s requirements. Generally scheduling has
been done by the manages but that doesn’t mean that employees will always get the schedule
what managers want or which is best for them.
AI lets companies design a more flexible schedule. It also designs multiple schedules out which
employees have the privilege to select the one that best suits them. For non-shift workers also,
AI streamlines the time-off requests made. As a result managers don’t need to spend several
hours per week to review the request and to take days or even weeks to get back to employees.
AI and machine learning handles that smartly. Real time time-off handling allows employees
to have more control on their time-offs and managers also can spend the remaining time
company target accomplishment activities.

13
Identifying Opportunities For Growth : One of the biggest motivation for employees is to
achieve goals and having access to challenging work. AI can be used to gauge employee
engagement and work performance. AI by analysis of the same can give timely reminders to
managers when employee is ready for a new challenge or they have outgrown aspects of their
role.
This AI assistance can help HR people to retain talent potentially at risk for turnover.

14
5. Findings
 HR is ill equipped to implement AI in organization. Organizations want AI, but they lack
talent, leadership and confidence to make that happen in their Human Resource team.
 Implementing AI in recruitment reduces or even removes activities like screening,
sourcing and assessments of resumes manually and automates it. It will reduce the time of
recruiters for one hire, which will enable team not to lose best talent in this competitive
world.
 Challenges that HR will face in recruiting are, AI needs a lot of data to learn. In process,
it also can learn human biases. As AI is young, it can be proven as just a skeptic and much
hyped technology also.
 AI can bring revolution in area of training and development as it provides option of
personalize learning. Trainees now can learn more efficiently. AI is adding context,
relevance and personalization in corporate training. It is also improving feedback training
program. Future AI will also add the 3D aspect in training.
 BetterWorks is an AI solution to such problem like performance review. It accurately
provides 360 degree feedback. It processes way more variables then a human HR can
process. It provides performance measurement real time which improve feedback process.
The only risk here is privacy of data.
 ‘Vibe’ is an algorithm that analyses the employees’ data and predicts his mood. ‘Keen’ is
another example which does more or less the same. These two algorithms help HR
department in employee engagement.
 For onboarding, AI is the single point access for company information. AI stores the all
relevant information and deliver it to the employee when asked about. AI can help the HR
department to improve a new employee’s transition into the organization.
 AI betters the work-life balance of employees by customizing scheduling. It also identifies
opportunities for growth. AI assistance can help HR people to retain talent potentially at
risk for turnover.

Conclusion
From above literature it has been concluded that, transformation in HR function is the need of
the hour to sustain in this competitive world. Technology is the solution for that. This is an era
of AI and machine learning. AI can be implemented in HR functions, but it has its own
consequences. Lots of good and few bad ones as well. It saves time and cost. It gives that edge

15
to the organizations over its competitors. And also it can learn human biases as well if not used
properly. Technology is here only to ease up the human work and not to take away the jobs.
One thing should be clear that in any organization process, human interventions and decision
making is always needed.

Limitations and Future research scope

The research done here is in general form means that what impact AI will have on HR
department as a whole. Any particular industry is not focused. The framework may be
structured in other industries and real world setting by adding or removing some unrelated
dimensions based on the type of industry.

16
References
Bibliography
Agrawal, N.M., and Thite, M. (2003). Human Resource Issues, Challenges and Strategies in the Indian
Software Industry. International Journal of Human Resources Development and
Management, Vol. 3, 249–264.

Tripathi R. (2017). A Study on Innovative Practices in Digital Human Resource Management.

Long Y. (2009) The impact of information technology on the HR function transformation.

Business Administration HRM, University of Twente

Mishra, Alok & Akman, Ibrahim. (2010). Information Technology in Human Resource Management:
An Empirical Assessment. Public personnel management. 39. 271-290.

Webliography
Rouse, Margaret (2017) https://searchenterpriseai.techtarget.com/definition/AI-Artificial-
Intelligence site accessed on: 11/02/2019

Xavier, Job (2017) Artificial Intelligence and HR

https://www.researchgate.net/publication/318671979_Artificial_Intelligence_AI_and_HR site
accessed on: 11/02/2019

Anand Priyanka (2017) https://www.peoplematters.in/blog/hr-technology/introduction-of-ai-to-

new-age-human-resource-16958 site accessed on: 11/02/2019

Nunn, Jeremy (2018) https://www.forbes.com/sites/forbestechcouncil/2018/05/09/how-ai-is-

transforming-hr-departments/#2777bab21c0f site accessed on: 11/02/2019

Pwc https://www.pwc.at/de/publikationen/verschiedenes/artificial-intelligence-in-hr-a-no-
brainer.pdf site accessed on:11/02/2019

https://www.hcamag.com/features/is-ai-the-new-hr-253660.aspx site accessed on : 18/02/2019

https://www.peoplematters.in/article/strategic-hr/era-automation-
12119?utm_source=peoplematters&utm_medium=interstitial&utm_campaign=learnings-of-the-day
site accessed on 18/02/2019

https://www.analyticsindiamag.com/in-the-age-of-automation-where-does-the-future-of-hr-stand/
site accessed on 18/02/2019

Singh D. (2017) : https://www.peoplematters.in/article/employee-engagement/the-evolution-of-hr-

in-the-digital-era-17081 Site visited on : 27/02/2019