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Artificial Intelligence in Human Resource Management: Recent Trends and

Research Agenda

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DOI: 10.1108/S1569-37592023000111B003

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Chapter 3
Artificial Intelligence
in Human Resource
Management: Recent Trends
and Research Agenda
Akansha Mer
Department of Commerce & Management, Banasthali Vidyapith, Tonk, Rajasthan, India

Abstract
The COVID-19 pandemic ushered in multiple challenges for employees, which
led to employee turnover, disengagement at work, employees’mental health
issues, etc. The study tries to elucidate how artificial intelligence (AI) herald
great promise in human resource management in decreasing cost, attrition
level and enhancing productivity. Considering the dearth of studies on recent
trends in human resource management (HRM) in the context of AI, the study
elucidates the role of AI in facilitating seamless onboarding, diversity and
inclusion (D&I), work engagement, emotional intelligence and employees’
mental health. Thus, a conceptual model of recent trends in HRM in the con-
text of AI and its organisational outcomes is proposed. A systematic review
and meta-synthesis method are undertaken. A systematic literature review
assisted in critically analysing, synthesising, and mapping the extant litera-
ture by identifying the broad themes. The findings of the study suggest that
using natural language processing (NLP) and robots has eased the onboard-
ing process. D&I is promoted using data analytics, big data, machine learn-
ing, predictive analysis and NLP. Furthermore, NLP and data analytics have
proved to be highly effective in engaging employees. Emotional Intelligence

Digital Transformation, Strategic Resilience, Cyber Security and Risk Management

Contemporary Studies in Economic and Financial Analysis, Volume 111B, 31–55
Copyright © 2023 by Akansha Mer
Published under exclusive licence by Emerald Publishing Limited
ISSN: 1569-3759/doi:10.1108/S1569-37592023000111B003
31
32 Akansha Mer

is applied through AI simulation and intelligent robots. On the other hand,

chatbots, employee pulse surveys, wearable technology, and intelligent robots
have paved way for employees’ mental health. The study also reveals that using
AI in HRM leads to enhanced organisational performance, reduced cost and
decreased intention to quit the organisation. Thus, AI in HRM provides a com-
petitive edge to organisations by enhancing the performance of the employees.
Keywords: Artificial intelligence; human resource management; HRM;
onboarding; diversity and inclusion; work engagement; emotional
intelligence; mental health; robots; machine learning; COVID-19

1. Introduction
Human resource management (HRM) is a robust enabler of an organization’s
ability to thrive amidst volatility, uncertainty, complexity and ambiguity. HRM
has been a significant victim of the COVID-19 pandemic (Oseghale et al., 2022).
Several workplace-related changes occurred due to the pandemic, such as a shift
toward remote work or a hybrid working mode. The pandemic ushered in mul-
tiple challenges for employees. Working from home leads to feeling isolated and
high anxiety among employees (Kelley, 2021). The pandemic led to a health crisis
by adversely impacting mental health, and the ripple effect was prominent. This
adversely impacted the well-being of the employees on the physical and emo-
tional front. Both employee well-being and performance were at stake.
The pandemic also engendered employee turnover and disengagement at work
(Lund et al., 2020). Studies show that organisations have struggled in the remote
work setting because many employees cannot handle work-life conflicts, and new
technology is required for remote work settings to function without reporting
well-being problems (Venkatesh et al., 2021). The pandemic led to stress, psycho-
logical challenges and work–life imbalance. A healthy and happy workforce is an
engaged and motivated workforce. Employees disengaged at work are likely to
quit the organisation (Mer & Srivastava, 2023). Furthermore, if the organisations
will mishandle the transition from on-site to remote work, then it will lead to
social inequalities and will adversely impact the diversity, equity and inclusion in
the organizations (Williams et al., 2021). Also, many employees lack the technical
competencies to perform their jobs in work-from-home (WFH) settings (Dirani
et al., 2020).
A survey conducted by Mckinsey & Company elucidated the issue of employee
attrition, wherein it was found that employee attrition is on the rise and the
employees are likely to quit the job in future. It was found that employees are
willing to leave their job even if they do not have any jobs. Fig. 1 depicts that
employers on being asked whether they are experiencing more significant volun-
tary turnover, such as quitting and resignation, 53% of the workforce revealed
that they are experiencing more significant turnover. Most expect the problem to
continue or worsen over the next six months, and 47% of the workforce revealed
otherwise (Smet, Dowling, Mugayar-Baldocchi, & Schaninger, 2021).
AI in HRM 33

Share of employers, %
Question: Are you experiencing greater voluntary turnover
(eg. quit, resignation) in your workforce this year than in
years prior? (n=250)
54% 53%
52%

50%

48% 47%
46%

44%

Yes No

Fig. 1. Share of Employers Experiencing More Significant Voluntary Turnover.

Source: Author’s compilation. Adapted from Mckinsey & Company (2021).

Most employers are experiencing higher turnover, and most expect the prob-
lem to continue or worsen over the next six months (Fig. 2). Similarly, the sur-
vey conducted by Mckinsey & Company (2021) on the employers who indicated
that they are experiencing more significant turnover, on being asked ‘how do you
expect the rate of turnover to change over the next 6 months’, 64% expected that
voluntary turnover would remain elevated or to increase.

Share of employers, %
Follow-up question for respondents who answered 'yes' in figure 1.1: how do
you expect the rate of turnover to change over the next 6 months? (n=132)

70%
59%
60%
50%
40% 36%

30%
20%
10% 5%
0%
Increase No change Decrease

Fig. 2. Employers’ Expectation on Turnover Over the Next Six Months.

Source: Author’s compilation. Adapted from Mckinsey & Company (2021).
34 Akansha Mer

Thus, things have drastically changed in the new normal in an organisa-

tional setting. The employee turnover is on rise. With so many challenges
organisations face on the HRM front, the human resource function needs to
deploy agile HRM practices or support organisations and their employees in
the new normal (Aitken-fox, Coffey, Dayaram, McKenna, & Tian, 2021). This
will be across various domains of HRM such as hiring, performance appraisal,
employee relation, training in the context of technology and mental health
(Aitken et al., 2021), as ample attention has been given to these domains
during the outbreak of COVID-19 (Hamouche, 2021). Therefore, manag-
ing human resources efficiently and effectively is essential in the new normal.
Technological disruption has a great deal of effect on the way people are man-
aged (Cascio, 2019).
AI is one such technological disruption (Khan & Mer, 2023). The role of AI in
HRM has increased manifold with the onset of COVID-19. COVID-19 ushered
in new digital ways of human interaction for HRM (Carnevale & Hatak, 2020).
A survey conducted for Deloitte’s ‘State of AI in the Enterprise’ (2022) on 2,620
business leaders across the globe from six industries areas and many sectors high-
lighted the following findings:
Ninety-four percent of business leaders surveyed agree that AI is critical to success over next
five years; Seventy-nine percent of leaders say they have fully deployed three or more AI appli-
cations, compared to 62% last year.

AI endows employee benefits such as reduced employee turnover and enhanced

productivity.
With the vital role of AI in enhancing HRM performance (Faliagka et al.,
2014), academicians have a burgeoning interest in the role of AI in HRM (Pan
et al., 2022). Deloitte Global Human Capital Trends Survey 2020 revealed the
importance of AI for organisations. As shown in Fig. 3, the survey revealed that
58% of the respondents believed that AI helps in improving consistency and
quality, 28% of the respondents believed that AI helps in improving productiv-
ity, and 16% of the respondents believed that AI helps in improving the insights
of the employees in the organisations. Thus, AI is a potent tool in the hands of
the employees to enhance the overall productivity of the organisation (Schwartz
et al., 2020).
In this light, the current study focuses on the role of AI in five significant
aspects of HRM: onboarding, D&I, work engagement, emotional intelligence
and employees’ mental health and their impact on the organisation. Furthermore,
although previous studies on the role of AI in HRM have been conducted
(Tambe et al., 2019), they are descriptive and did not tap into the theoretical
contributions (Tambe et al., 2019). Thus, the current study makes novel con-
tributions to the existing literature. First, the study focuses on the role of AI in
promoting diversity and inclusion, as there is a dearth of studies on this topic
(Rathore et al., 2022). Second, the study’s novelty also stems from studying the
role of AI in promoting work engagement. Third, there is a dearth of studies
AI in HRM 35

Fig. 3. Percentage of Respondents Who Ranked Each Activity as the Most

Prevalent of the Three. Source: Author’s compilation. Adapted from Deloitte
Global Human Capital Trends Survey, 2020.

on work engagement in the AI context (Mer & Srivastava, 2023), and remote
work has impacted engagement at work. Fourth, the study also taps the role
of AI in promoting employees’ mental health. Fifth, the study also elucidates
the organisational outcome of using AI in HRM (onboarding, D&I and work
engagement).
Thus, the objectives of the study are:

i) To investigate the role of AI in HRM with special reference to onboard-

ing, D&I, work engagement, emotional Intelligence and employees’ mental
health.
ii) To investigate the outcomes of AI in HRM on the organisations.

2. Research Methodology
The study is exploratory. Exploratory study aims to gain insight into a prob-
lem for more accurate investigation and study (Kothari, 2019). It emphasises the
discovery of new ideas and insights. The study has employed a systematic lit-
erature review approach by identifying the major themes, critically examining,
synthesising, and mapping the existing research. The type of systematic literature
employed is meta-synthesis. Meta-synthesis is a non-statistical literature review
technique that combines, assesses, and explains the findings of various qualitative
research studies. It is an inductive approach.
The researchers followed the steps referred in Fig. 4 to conduct the literature
review.
36 Akansha Mer

Studies identified through

Studies identified through
selected articles' reference lists
title and abstract (n=383)
(n=152)

Total articles retrieved

through the title, abstract and
reference list (n=535)

Duplicate articles removed

(n=230)

Full-text articles assessed

for eligibility (n=305)
Articles removed (n=274); Reason:
not related to onboarding, D&I, work
engagement, emotional intelligence and
employee mental health
Studies included in the
systematic review
Final sample (n=31)

Fig. 4. Process of selecting articles. Source: Author’s compilation.

2.1 Strategy for Searching

First, research papers published in major HRM and AI journals were included.
Second, to supplement Hewett, Shantz, Mundy, and Alfes’ systematic review
(2018), the two databases: Business Source Ultimate (EBSCO) and science
direct, were utilised. Since most research on technological breakthroughs and
HRM is published in EBSCO and Science Direct, the researcher used these
databases. Also, various combinations of keywords pertinent to the current
study were used.

2.2 Inclusion and Exclusion Criteria

The study was confined to full-length, peer-reviewed academic papers published
in English (Sheehan et al., 2010) after selecting the publishing sources and in
accordance with the current cutting-edge systematic reviews (Sheehan et al.,
2010). All articles published until October 2022 were referred for systematic
review papers. Articles that dealt with the role of AI in HRM with special ref-
erence to onboarding, work plengagement, D&I, emotional intelligence and
employees’ mental health were considered for the current study.
AI in HRM 37

2.3 Selection of Keywords

The researcher identified relevant articles through a rigorous process. Refer to
Fig. 1. First, the researcher identified articles through titles and abstracts using
relevant keyword formulas. For this, an initial scoping search of pertinent articles
to identify various trends in keyword usage was conducted. This led to the iden-
tification of various keywords with respect to AI. Furthermore, using standard
Boolean operators facilitated the creation of a single search algorithm (Pisani
et al., 2017). Therefore, these keywords were combined with the Boolean operator
‘OR’ to find pertinent articles in top-notch HRM journals. The keyword search
algorithm related to AI is ‘artificial intelligence’ OR ‘AI’ OR ‘machine learning’,
‘chatbots’ OR ‘big data’ OR ‘neural network’ OR ‘robot’. Whereas keyword
search algorithms related to HRM included ‘human resource management’ OR
‘HRM’ OR ‘onboarding’ OR ‘work engagement’ OR ‘diversity and inclusion’ OR
‘emotional intelligence’ OR ‘employees’ mental health’. The research was limited
to full-length articles (Sheehan et al., 2010). The researcher then combined key-
words of AI and HRM with the Boolean operator ‘AND’. Thus, the full stings
used are (‘artificial intelligence’ OR ‘AI’ OR ‘machine learning’, ‘chatbots’, ‘natu-
ral language processing’ OR ‘big data’ OR ‘neural network’ OR ‘robot’) AND
(‘human resource management’ OR ‘HRM’ OR ‘onboarding’ OR ‘work engage-
ment’ OR ‘diversity and inclusion’ OR ‘emotional intelligence’ OR ‘employees’
mental health’). This led to the identification of 383 articles. Furthermore, studies
were also identified through selected articles’ reference lists. One hundred fifty-
two articles were identified through this process. This led to a total of 535 articles.

2.4 Articles Eligible for the Study

Out of 535 articles, 230 duplicate articles were removed. This led to a total of
305 screened articles. In another round of screening, the researcher removed
274 articles unrelated to onboarding, work engagement, D&I. Therefore, the
final number of articles eligible for the systematic literature review is 31. Refer to
Fig. 4 for the process of selecting the articles.

3. Role of AI in HRM
3.1 Onboarding
Once the candidates are recruited, AI enhances their experience by helping them
comply with all the formalities electronically, thereby reducing the paperwork.
Furthermore, the organisations conduct orientation programs for new joiners
to familiarise them with the organisation’s culture, employee benefits, rules and
regulations, etc. COVID-19 has also brought sea changes in the traditional way of
onboarding due to the shift to a remote and hybrid working mode. Studies show
that AI has enhanced the onboarding experience.
Westberg (2019) elucidated that chatbots have eased the onboarding process
through required communication. Especially new remote joiners can connect and
38 Akansha Mer

feel a part of the team through collaborative connections. Through chatbots, they
can be involved in several chats to fit into the company’s frame. In line with the
above studies, Rehmani and Kamberaj (2021) also divulged that AI-enabled chat-
bots augment employees’ onboarding experience.
Similarly, Jonsson et al. (2020) indicated that AI decreases the time taken in
onboarding. Garg et al. (2021) revealed that NLP is ‘machines’ ability to com-
municate with humans in their native language, as well as their ability to grasp
speech and texts and develop suitable replies to the stimuli they get from humans’,
which helps in onboarding.
Mer and Virdi (2021) indicated that new joiners sometimes miss pertinent
information during orientation programs. Chatbots help overcome this issue by
addressing various queries of the new joiners that might be skipped during the
orientation program, that is, the frequently asked questions by the new joiners
are addressed promptly through AI-enabled chatbots. Chatbots help new join-
ers by providing them with relevant information about the manager they have
to report to, the work assigned to them, team members, etc. Similarly, Sharma
(2021) divulged that AI chatbots could enhance employees’ experience through
chatbots. The new joiners can enter their queries and get a list of responses based
on the history of questions. Thus, the onboarding process, which was initially
time-consuming without AI-backed tools, now helps complete many onboarding
steps in less time through chatbots.
He (2018) elucidated that AI has eased the onboarding process. Chatbots help
new joiners by providing all sets of itineraries and a personalised list of training
designed especially for the role, personality, background and career development
path. The author highlighted that each subsequent class is automatically added
to your calendar, which you can view from any connected and authorized device,
and over time, since AI learns and adapts, it will sense your preferences and rec-
ommend other useful courses. Furthermore, you will also be given a calendar of
meetings to get to know colleagues across the organization in your first few weeks.
These meetings have been automatically selected for you based on who your most
likely internal stakeholders will be, as well as those who may potentially serve as
mentors, collaborators and key stakeholders.
Chatbots can address new hires’ frequently asked questions, ranging from
finding a new Information Technology support person and which employee ben-
efits package to subscribe to.
Pathak and Solanki (2021) in their study revealed that new hires could connect with
other employees, develop relatedness, and get information about the organisation. The
department head can welcome the newly hired employees through his mobile.
Studies also reveal that robots help in onboarding. Guenole and Feinzig
revealed that onboarding experience can be enhanced through AI, as it helps in
resolving new employees’ queries, such as giving training recommendations, pro-
viding names, contact details and location information that new joiners seek on
their first day on the job.
Thus, as shown in Fig. 5, the role of AI in onboarding includes documen-
tation, connection, addressing frequently asked questions and familiarising new
joinees regarding the organisation culture.
AI in HRM 39

Fig. 5. Role of AI in Onboarding. Source: Author’s compilation.

3.2 Diversity and Inclusion

Diversity refers to
all aspects of human difference, social identities, and social group characteristics, including but
not limited to race, ethnicity, creed, color, sex, gender, gender identity, sexual identity, socio-
economic status, language, culture, national origin, religion/spirituality, age, and (dis)ability as
well as military/veteran status, political perspective, and associational preferences. (Chauhan &
Kshetri, 2022)

On other hand, inclusion refers to

bringing together and harnessing these diverse forces and resources, in a way that is beneficial.
Inclusion puts the concept and practice of diversity into action by creating an environment of
involvement, respect and connection – where the richness of ideas, backgrounds, and perspec-
tives are harnessed to create business value. (Jordan, 2011)

Studies reveal that several biases can occur (conscious and unconscious) on the
part of humans that may adversely impact D&I. Several biases occur regarding
racial discrimination while hiring (Quillian et al., 2017) and during performance
appraisal based on age (Waldman & Avolio, 1986). It is also found that entry-level
women confront discrimination while receiving compensation and promotion. AI
can promote D&I by overcoming biases. Hiring a diverse workforce is a gateway
to inclusive work culture. AI helps in offering employees the chance to interact and
communicate by using advanced technology, thereby facilitating collaboration and
coordination.
AI and data-based algorithms can provide visibility into whether the organization is truly
diverse. By analyzing the profile of the workforce, AI can assess diversity (race, gender, ethnic-
ity, etc.) and monitor it in real-time across functions, career levels, and other criteria. (Mahto
et al., 2022)
40 Akansha Mer

In organisations, AI can facilitate blind hiring

by stripping away identifiable attributes from resumes that are typically not related to can-
didates’ skills, expertise, or experience. By removing attributes such as name, age, headshot,
gender, race, or ethnicity from resumes before they reach hiring managers, AI can reduce
human biases and help drive a more equitable recruitment process. (Mahto et al., 2022)

Chauhan and Kshetri (2022) indicated that data analytics tools, if devel-
oped judiciously, can help remove conscious and unconscious biases. D&I can
be promoted through data analytics by improving recruitment, compensations,
promotion and employee retention decisions. AI overcomes biases by making
decisions based on the skills and competencies of employees without knowing
the applicants. A study by Mer & Virdi (2022) divulged that using AI while
recruiting can generate a diverse pool of applicants based on the job skill match
without biasness. AI-based tools assist in scheduling and rescheduling inter-
views based on prioritisation and balancing despite the various status of the
applicants. Such interviews garner candidates’ responses by using text, audio
and video. They also indicated that organisations like Tesla, Google and IBM
use big data, machine learning and predictive analysis to monitor the perfor-
mance of employees, thereby remunerating them fairly. Similarly, Geetha and
Bhanu (2018) revealed that NLP is used to evaluate the interview process. This
facilitates D&I as this process is solely based on applicants’ responses and not on
name, gender, race, etc., offering a fair opportunity to the candidates (Rathore
et al., 2022).
Van Esch et al. (2019) indicated that AI when used while recruiting, can
extrapolate possible behaviours in the context of job fit and performance with-
out being biased and far more objective than human beings. This facilitates
D&I. Similarly, Sajjadiani et al. (2019) indicated that machine learning could
help in the selection process by eliminating the chances of biasness from the
recruiters’ end.
A report by IBM unleashed that AI helps in mitigating biases. The study
highlighted that machines are free from inherent biases and do not inhibit D&I
Ahmed (2018). Machines are subject to choices of algorithmic features chosen by
those who build them. If developed appropriately, AI can remove the ‘attributes
that lead to biases and can learn how to detect potential biases, particularly those
unconscious biases that are unintentional and hard to uncover in decision-mak-
ing processes’ (Zhang, Feinzig, Raisbeck, & McCombe, 2018). If AI detects any
such biases, it can potentially alert the HR Managers regarding the same. Thus, a
carefully designed AI can also help detect and overcome biases. Thus, AI ensures
that qualified candidates have equal access to job opportunities and in helping
human resource managers in taking fair employment decisions. AI-enabled job
posting review technology can detect bias in draft advertisements before they
appear in front of potential candidates. The AI technology can highlight gender,
age and ethnicity biased language to enable re-wording for a job posting that will
appeal to as broad a spectrum of qualified candidates as possible. AI can also
improve job postings through guidance on tone, voice, and length to reduce biases
(Zhang et al., 2018).
AI in HRM 41

Artificial intelligence technology has the potential to

improve diversity and inclusion
70% 65%
60%
50%
Percentage

40%
30% 25%
20%
10%
10%
0%
Diasagree to strongly disagree Neutral Agree to strongly agree

Fig. 6. Role of AI in Promoting D&I. Source: Authors’ compilation. Adapted from

2018 IBM and UNLEASH HR professional survey (n = 182).

As shown in Fig. 6, a study conducted by IBM revealed that 65% of the

employees were in the category of agree to strongly agree regarding AI’s poten-
tial to improve D&I. Twenty-five percent were neutral to the statement that AI
has the potential to improve D&I. Only 10% were in the category of disagree to
strongly disagree regarding AI’s potential to improve D&I in the organisations.

3.3 Work Engagement

Work engagement is ‘a positive, fulfilling, work-related state of mind that is char-
acterized by vigour, dedication, and absorption’ (Schaufeli et al., 2002). Studies
show that providing feedback to employees (Albrecht & Marty, 2020) and facili-
tating communication in organisations foster employee engagement (Kataria,
2019). Furthermore, training and development positively affect work engagement
(Patil, 2018). Also, giving fair compensation to employees has a positive effect on
work engagement (Kanten & Sahdulla, 2012).
SivaSubramanian (2022) revealed that employee engagement trends are chang-
ing as the generations change in the workforce. As a result, the tools required
to engage and retain employees are also changing. Dell Technologies has shown
that Gen Z looks forward to how technology can revolutionise how employees
work and engage. When Gen Z is equipped with advanced technological tools,
they exhibit high engagement and involvement in their jobs. Likewise, unlike the
annual performance review platform, conducting
regular pulse surveys using AL and AI technology makes them feel valued, recognized, and
emotionally invested in the organization. Organizations are now deploying these tools to cre-
ate customized feedback forms to assess employee engagement levels as per their requirement.

With technological advancement, traditional employee engagement practices

like two-way communication, employee recognition programs, and learning
42 Akansha Mer

and development are being replaced by new employee engagement tools such as
machine learning and AI. These tools have a futuristic approach. Organisations
like Microsoft, Apple, Walmart, Amazon and Barclays use machine learning and
AI to enhance and measure employee engagement.

3.3.1 Communication and Work Engagement

Before the outbreak of COVID-19, communication took place through in-person
interactions with the managers (Harter & Adkins, 2015). Post-pandemic, vir-
tual work took centre stage. Virtual work requires many meetings, which leads
to much effort − keeping the remote employees as connected as they were
before the pandemic. Therefore, communication decreased due to the increase
in remote work. AI has addressed this issue by allowing the workforce to com-
municate in real-time, eliminating distance barriers. Approaching employees’
desks to resolve the issues is impossible in WFH. Thus, chatbot integration
with different tools is being used. Frequently asked questions can be addressed
through chatbots, wherein the employees can type their queries and receive
quick automated responses. Chatbots save time and provides quality information
(Sood et al., 2022).
As a result, employees feel engaged at work (Mer & Srivastava, 2023). Thus,
AI tools such as chatbots make communication collaborative, interactive and fun.
Auto-schedules are being used to get common slots between meeting participants.
It is found that organisational communication can be facilitated through AI by
comprehending workforce needs. Sidner (2003) highlighted the role of robots in
engaging the employees through collaborative conversation encompassing ges-
tural capabilities for hosting activities. AI algorithms help analyse employee sat-
isfaction levels which in turn helps the workforce respond to a climate survey on
their experiences, analyses the inputs given by the respondents and provides valu-
able insights to the organisation for fostering employee engagement and retention
(Garg et al., 2021; Grima et al., 2021).

3.3.2 Feedback and Work Engagement

Feedback is positively associated with work engagement. Post-pandemic, with
an increase in remote work, providing real-time feedback has become critical.
AI tools can automatically provide information during meetings and generate
Minutes of Meetings. AI detects meaningful conversations among employees. It
taps appreciation from the daily conversations of the team and provides real-time
feedback (Mer & Virdi, 2023). This helps in rectifying any issues and appreciating
the workforce’s productive work. Further, it provides auto-reminders to seniors to
offer timely feedback. Chatbots, through AI, have made feedback more produc-
tive and fulfilling.
A study by Hughes et al. (2019) revealed that employees are engaged by using
AI to give feedback. Garg et al. (2021) further highlighted that AI algorithms
help analyse employee feedback and satisfaction. This helps the employees to
respond to a climate survey on their experiences, analyses the inputs provided by
the respondents and offers valuable insights to the organisation for enhancing
AI in HRM 43

employee engagement and retention. Besides, AI tools such as NLP and machine
learning are also instrumental in bringing effective co-worker relationships and
employee engagement.

3.3.3 Training and Development and Work Engagement

Prior studies indicate that training and development is positively associated with
work engagement (Patil, 2018). Remote work demands employees to equip them-
selves with novel online office and communication skills and, therefore, to train
the employees accordingly. Studies show that organisations faced many chal-
lenges in the context of remote work, such as skills of the workforce were not
ample for the WFH pattern as the ‘office work skills of the past are no longer
sufficient to meet the company’s needs’.
Chen’s (2022) study highlighted that AI personal training assistants could
emphasise the ‘learning needs of learners, assess and diagnose problems and pro-
vide assistance during organizational training’. Also, it can automatically pro-
vide one-to-one training, execute tasks for practising skills in interactive learning
environments and evaluate trainees’ behaviour. They also indicated that AI helps
in providing personalised trainers. Several problems are encountered in face-to-
face training programs by human instructors where trainees perform poorly if
the trainer lacks expressive and organisational skills. AI can input trainer char-
acteristics and research findings to forecast the efficiency of training transfer.
Furthermore, AI helps in meeting personalised training needs. The author
indicated that AI helps recommend courses that are in consonance with their
tastes based on their learning behaviour records. Also, robotics and autono-
mous agent chatbot applications play a significant role in AI-based training. For
instance, chatbots help provide answers to employees’ queries and facilitate learn-
ing anytime and anywhere. Trainees can upload their questions to the training
system with the help of AI voice recognition and image recognition technologies,
and then analyze and integrate the questions with the central database of the
training system to obtain the answers. The robot trainers can also observe the
learning performance of the trainees through a ‘visual feedback lidar scanning
system, precisely calculate the average value of everyone’s attention, and then use
data analysis to extract the teaching events at various stimulus levels’.
In their empirical study, Xu and Xiao (2020) elucidated that AI-backed virtual
reality simulators enhance employee training. It was found that virtual reality
technology for training decreased costs and enhanced overall organisational com-
petitiveness (Xu & Xiao, 2020). Likewise, Chen (2022) also indicated that virtual
reality and augmented reality technologies can simulate realistic scenes for train-
ees, making learning more engaging for employees.
Vrontis et al. (2022) highlighted that AI could be employed by organisations
through robots. This helps in enhancing the performance of the employees at
work. Also, using machine learning during training boosts work engagement.
Similarly, Majumder and Mondal (2021) elucidated that employees in organisa-
tions feel engaged when AI-backed chatbots are used in the training modules.
This is because chatbots are interactive and engage directly with the workforce.
44 Akansha Mer

3.3.4 Fair Compensation and Work Engagement

Prior studies show that fair compensation positively relates to work engagement
(Kanten & Sadullah, 2012). Working in a hybrid setting impacts compensation
intensely. Thus, the HR managers have to bring a balance and pay fair remunera-
tion to employees. Guenole and Feinzig (2019) elucidated that AI can make pay
recommendations to managers based on training results to help the employees in
improving their skills. For example, IBM addresses pay inequalities by correlating
employee pay with skill sets.
Hughes et al. (2019) investigated the role of AI in engaging employees and
found that AI facilitates work engagement by providing fair remuneration as per
the work done. The AI tool used to provide fair compensation is AI surveillance
software, which assists in determining employees’ scores.
According to Sammer (2019), AI tool such as machine learning recommends
salary ranges. ML can offer accurate recommendations for salary ranges based on
the workforce’s overall performance.
As shown in Fig. 7, AI is crucial in promoting work engagement by ensuring
communication, feedback, training and development and fair compensation.

Fig. 7. Role of AI in Enhancing Work Engagement. Source: Author.

3.4 Emotional Intelligence

One of the aspects of emotional intelligence is the ability to identify and deci-
pher emotions in faces, voices and cultural artefacts. Also, it deals with identifying
one’s own emotions. Emotional intelligence is relevant in the contemporary era as
it helps build meaningful relationships with customers, employees, peers, etc.
According to Pietikäinen and Silven (2022), emotional intelligence is required
in the system being developed to comprehend employees’ experiences and to take
action accordingly. Emotions also impact our health. For instance, negative emo-
tions can also cause a heart attack or cerebral haemorrhage. Negative emotions
AI in HRM 45

like depression can lead to heart disease and diabetes. Emotional intelligence can
assist in monitoring our mental state. Symptoms that are visible on people’s faces,
such as fatigue, anxiety, and stress, can be detected by machine vision (Thevenot
et al., 2018). Emotions even reveal when someone is tired and frustrated. Studies
also show that ‘Emotional status analysis may be useful, for example, in job inter-
views or in preparation for such’. In today’s era, where interconnected intelligent
devices control our communication, paying attention to emotions plays a vital role
in AI, where emotion AI or affective computing comes into the picture (Picard,
1997). AI-backed technologies can capture emotions. Also, the workforce can use
their smartphones to self-reporting their mood/record their speech/make use of
their smartwatch to check their heart rate, temperature and electrodermal activity
to promote the well-being of employees (Brassey et al., 2021).
Goasduff’s (2018) study elucidated how AI captures, interprets and responds
to human moods and emotions. Emotion AI or affecting computing can create
personalised human experiences, for example, a smart fridge that can interpret
how one feels. Thus, emotion AI helps in detecting, analysing, processing and
responding to others’ moods and emotional states, such as love, happiness, fear
and shame. Virtual personal assistants use natural-language processing and
natural-language understanding for processing verbal commands and questions.
Emotional-sensing capabilities can enable virtual personal assistants to analyse
data points through facial expressions, voice intonation and behavioural patterns,
thereby enhancing user’s experience and generating natural user interactions.
Furthermore, personal assistant robots (PAR) are instrumental in developing
emotional AI. PAR can adapt to various emotional contexts and people. The
greater the interactions PAR has with people, the more it is likely to develop a
personality. IBM and startups like Emoshape are framing for adding human-like
qualities to robotic systems. ‘Qihan Technology’s Sanbot and SoftBank Robotics’
Pepper train their PARs to distinguish between, and react to, humans’ varying
emotional states’. For instance, if personal assistant robots identify disappoint-
ment during an interaction, they will respond apologetically.
Sivasubramanian (2022) highlighted that facial expressions and speech
recognition tools assist the hiring team in screening the candidates’ personal-
ity traits. Furthermore, it also assists the prospective employees in cultural fit.
Machine learning-driven automated background checks ensure that employees
get the right roles in the organisation. Likewise, AI-backed tools can monitor the
performance of employees on a real-time basis and indicate areas for improve-
ment. AI-powered tools employ sentiment analysis and NLP of text conversa-
tions to discern employees’ moods and feelings. Even the future performance of
employees can also be predicted through it based on behavioural patterns, facial
gestures and body language.
Furthermore, AI-backed tools can examine biometric data such as fingerprints
and eye scans for analysing employee experience and gauging employee engage-
ment. For instance, Google records the interactions of the workforce on AI soft-
ware and analyses the data to gain insight into their level of satisfaction. Similarly,
IBM uses AI-backed tools to comprehend employees’ verbal, written and facial
expressions to analyse their behaviour and predict their future performance.
46 Akansha Mer

In the context of emotional intelligence, AI can analyse human interactions both

during and after an event to generate ‘personalized, confidential recommendations
at an individual and organizational level to help improve human interactions at
work’ (Mahto et al., 2022). Mahto et al. (2022), in a survey of 2,620 business lead-
ers, revealed that the majority of respondents believed that their organisations have
‘either deployed or were developing AI applications for natural language process-
ing (including sentiment detection and text summarization), computer vision, text
chatbots, and voice agents’. This shows the importance of emotional intelligence,
where AI-baked tools are involved in sentiment detection and voice agents.
Mahto et al. (2022) revealed that emotional intelligence could be applied
through AI simulation, networking and personal upskilling. Emotion AI or
affecting computing, comprehends human emotions based on situations and rec-
ommendations. Thus, it applies in communication areas (Cibenko et al., 2019).
For instance, before any meeting or presentation, leaders can practice interactions
with AI avatars representing team members. Based on narrative, AI can make
possible arguments, assess persuasiveness and offer feedback to make communi-
cation effective.
AI simulations can be helpful when leaders are seeking inputs related to early-
stage thinking. In case of complex topics, leaders may first seek inputs from AI,
then review with peers and leaders at later stages when the thinking is more devel-
oped to save time.
Marcos-Pablos and García-Peñalvo (2021) conducted a study on emotional
intelligence in robotics and found that emotionally responsive machines that ‘can
simulate empathy increase the acceptance of users towards them, as the feeling
of affinity towards the machine reduces negative perceptual feedback’. They fur-
ther suggested that for endowing robots with emotional intelligence, they must
be backed with sensors that can capture the emotions of users (sense), appraise
captured emotions to regulate internal state (Compute) and do tasks in situations
where the actions are regulated by the computed, that is, ‘emotional’ state (act).
There is phenomenal growth in the current times in AI in the context of speech
recognition, computer vision and several other domains related to artificial emo-
tional recognition and behaviour.
Chen (2022) revealed that traditionally, training was given mainly to high per-
formers or those with performance issues. AI can go beyond and can facilitate
learning experiences customized to one’s emotional needs and can drive learning
experiences.
Mahto et al. (2022) divulged that AI-backed applications could connect pro-
fessionals with those who share the same interests and assist them in growing
their professional networks within and outside their organisation. Users provide
information regarding industry specialisation, interest areas, etc., to a model that
can create suitable matches.
Moore (2018) elucidated the uses of emotion AI technology. The study
divulged that AI vendors have forayed into new domains and industries and
assisted organisations in real cost saving. First, the study elucidated that with the
rising demand for employee safety solutions, emotion AI can assist in analysing
employees’ stress and anxiety levels, especially those employees with demanding
AI in HRM 47

jobs. Second, AI emotion is used in recruitment. For example, during job inter-
views, to comprehend the credibility of employees. Third, AI emotion is also used
by retailers. Retailers are using computer vision emotion AI technology to cap-
ture demographic details and visitors’ reactions and moods.

3.5 Employees’ Mental Health

Mental health is essential for employees and organisations because poor men-
tal health adversely impacts the organisations’ performance. The role of mental
health has increased after the onset of the COVID-19 pandemic. Post-COVID-19
pandemic, WFH was on the rise. Studies show that remote work makes employees
feel isolated, leading to high stress (Shen, 2021). During remote work, employees
confront conflicts between caring for their families and working, adversely affect-
ing their psychological health (Sharma et al., 2016). The psychological stress of
employees due to remote work negatively affects attaining organisational goals
(Chen, 2021). Besides, a survey on employees revealed that burnout, lack of flex-
ibility, organisational changes, discrimination, contribution and ideas not being
valued, inadequate benefits and lack of support from the organisation in con-
text of well-being are the main reasons for employees quitting their job post-
COVID-19 pandemic.
Ramasubramanian’s (2020) study indicated that the rise in digital healthcare
employed AI. After the outbreak of the COVID-19 pandemic, which brought
with it stress, organisations have employed AI for greater access to mental health
services.
Similarly, Asar (2020) highlighted that AI promotes mental health and makes
it more affordable and responsive. Similarly, Wei and Li (2022) studied manufac-
turing workers. They indicated that AI helps reduce the psychological depression
of manufacturing employees, thereby promoting mental health. Furthermore,
the study also revealed that working overtime does not mediate the relationship
between AI and mental health. However, work environment acted as a mediator
between AI and mental health.
It explains 11.509% of workers’ mental health. The impact of AI on the mental health of manu-
facturing workers varies by skill level and generation. AI improves the mental health of low-
skilled manufacturing workers by 2.342 points and that of manufacturing workers born before
the 1980’s by 2.070 points.

A survey conducted on Indian employees revealed that half of them worry

about their future. This is the primary reason for stress. A survey revealed that
28% of the workforce with WFH indicated burnout, and 48% indicated assign-
ment deadlines as a significant cause for stress. Besides, 35% of employees work-
ing from home showed concerns regarding their mental health or the mental
health of their families (Poddar, 2021). Also, AI is an effective way. Bhatt (2021)
indicated that since AI can supplement human answers, it is an effective way to
facilitate the well-being of employees.
A survey conducted by Oracle in association with Workplace Intelligence
(2020) in eleven countries divulged that AI facilitates employees’ mental health.
It was found that 75% of employees believe that AI can assist in promoting the
48 Akansha Mer

mental health of employees by offering them relevant details about their pro-
fessions (31%), automating operations (27%) and decreasing stress (27%). It
was also found that employees from India and China are more willing to talk
to robots regarding their mental health than their managers. Furthermore, 82%
of employees felt that robots could assist in promoting mental health as com-
pared to humans and 68% of respondents revealed that they would prefer talking
to robots than to their managers regarding anxiety at work (Oracle, 2020). This
shows that employees trust technology (AI) in facilitating mental health.
Along similar lines, a survey conducted by McKinsey divulged that organisations
that use digital biomarkers and wearable technology apps could assist the workforce
in promoting mental well-being. These apps collect data for analysing employees’
mental health. Ose et al. (2019) also revealed that advanced gaming tools, such as vir-
tual reality, can assist in facilitating early intervention for addressing mental issues.
Employee pulse surveys are other ways to promote employee wee-being in the
hybrid work environment. A pulse survey includes questions on employee well-
being. Employee pulse surveys promote employee well-being and build credibility
and trust. The data garnered from these surveys helps analyse employee behav-
iour over time. These surveys employ intelligent analytics to garner information
regarding employees’ moods and pain points for promoting their well-being.
Rodríguez-Hidalgo & Pantaleón (2020) found that stress and anxiety levels were
predicted by artificial neural networks and BP neural networks.

4. Organizational Outcomes of AI in HRM

4.1 Employee Retention
AI in HRM decreases employee turnover. Work engagement plays a vital role in
organisations as it decreases the intention to quit the organisations (Mer & Vijay,
2021; Mer, 2022; Mer, Virdi & Sengupta, 2022). AI in D&I also reduces employee
turnover (Rathore et al., 2022) as it helps in removing biases in recruitment and
performance appraisal, thereby leading to employee retention.
Furthermore, Prentice et al. (2020) integrated two aspects, that is, emotional
intelligence as personal intelligence and AI as machine intelligence and investigated
how emotional and AI effects employee retention of service employees in the hospi-
tality sector. The study revealed that EI is positively related to employee retention.

4.2 Decreases Cost

Studies show that AI has widely reduced organisations’ costs concerning the vari-
ous HRM domains such as hiring, orientation, onboarding, training, etc. (Mer &
Virdi, 2022). Similarly, by promoting D&I, AI decreases organisation costs and
leads to success (Rathore et al., 2022). Vrontis et al. (2022) revealed that training
leads to enhanced performance and decreases costs.
A survey conducted by Mahto et al. (2022) revealed that the majority of respondents believed
that their organisations have ‘either deployed or were developing AI applications for natural
language processing (including sentiment detection and text summarization), computer vision,
AI in HRM 49

text chatbots, and voice agents’. As per Deloittes’ report (2022), AI is being employed by
organisations to generate insights, decrease costs, optimise processes and enhance collaboration
across businesses. Studies have shown that AI in promoting mental health can expand access
and decrease costs (Kent, 2021).

4.3 Increases Productivity

Work engagement positively affects employee performance (Schaufeli, 2013). AI
has its presence in businesses and the military to monitor the workforce’s brain
activity and emotions (Chan, 2018).
Furthermore, chatbots offer employees a platform for informal conversations
to share their thoughts and feelings without being judgmental. Chatbots also pro-
vide feedback to employees, thereby enhancing their performance. AI tools such
as big data, machine learning and predictive analysis monitor employees’ perfor-
mance and remunerate them fairly (Mer & Virdi, 2022).
Prentice et al. (2020) who integrated two aspects, that is, emotional intelli-
gence as personal intelligence and AI as machine intelligence and investigated
how emotional and AI effects employee performance of service employees in the
hospitality sector revealing that EI is positively related to employee performance.
Besides, AI played a moderating role in the performance of the workforce. Thus,
HR practices that employ AI tools can deliver major benefits to organisations in
terms of enhanced workforce motivation and workplace productivity.

5. Discussion
The study aims to investigate the role of AI in HRM with special reference
to onboarding, D&I, work engagement, emotional intelligence and employee
mental health. Furthermore, the study also aims to investigate the outcomes of
HRM in AI on organisations. The study’s main contribution is to investigate
the role of AI on aspects of HR that have not been explored much, for exam-
ple, onboarding, D&I, work engagement, emotional intelligence and employees’
mental health. Another contribution to the study is investigating how AI in
HRM influences organisational outcomes such as intention to quit, cost and
performance.
Regarding the first objective, the findings indicate that AI can be of immense use
in managing human resources, especially in aspects like onboarding, D&I and work
engagement. Especially after COVID-19, AI has made remote work seamless.
The conceptual framework of the study is shown in Fig. 8. The figure vividly
depicts that the onboarding process has been eased by using NLP. Chatbots have
eased the onboarding process through proper communication (Westberg, 2019)
and augmented employees’ experience of onboarding (Rehmani & Kamberaj,
2021) by decreasing the amount of time taken in onboarding (Johnson et al.,
2020). Especially in remote work, new joiners can connect and feel a part of the
team through collaborative connections.
Regarding promoting D&I through AI, data analytics helps remove biases
by improving decisions related to recruitment, compensation, promotion and
50 Akansha Mer

AI Technologies Human Resource Outcomes

Management
Natural language processing
Onboarding
Robots Cost
Diversity &
Data analytics Inclusion

Big data Work Productivity

engagement
Machine learning
Emotional
Intelligence Intention to
Predictive analytics
quit
Mental Well-
Virtual Reality
being

Fig. 8. Conceptual Framework. Source: Author.

employee retention (Chauhan & Kshetri, 2022). AI overcomes biases by making

decisions based on the skills and competencies of employees without knowing the
applicants. AI tools such as big data, machine learning and predictive analysis
monitor employees’ performance and remunerate them fairly (Mer et al., 2022).
Another AI tool for promoting D&I is NLP, which evaluates the interview pro-
cess based on applicants’ responses and not on name, gender, race, etc.
AI tools such as NLP boost work engagement by quickly disseminating rele-
vant information required to perform the jobs effectively, and automating admin-
istrative tasks, thereby decreasing the workload to prevent stress and assisting in
prioritizing the tasks. Robots help in promoting communication among remote
employees and thereby promoting social interaction. Robots engage the employ-
ees through collaborative conversation encompassing gestural capabilities for
hosting activities (Sidner, 2003).
As regards emotion AI, virtual personal assistants use NLP and natural-lan-
guage understanding for processing verbal commands and questions. Emotional-
sensing capabilities can enable virtual personal assistants to analyse data points
through facial expressions, voice intonation and behavioural patterns, thereby
enhancing user’s experience and generating natural user interactions. Furthermore,
personal assistant robots are instrumental in developing emotion AI. Personal
assistant robots (PAR) can adapt to various emotional contexts and people.
The study also indicated that digital biomarkers and wearable technology apps
can assist the workforce in promoting mental well-being. These apps collect data
for analysing employees’ mental health. Furthermore, advanced gaming tools
such as virtual reality also assist in facilitating early intervention for addressing
mental issues. Employee pulse surveys are another way of promoting employees’
well-being.
AI in HRM 51

As regards, the second objective of the study, that is, outcomes of the use of AI
in HRM for organisations, the use of AI leads to enhanced organisational perfor-
mance (Olan et al., 2022), reduced cost (Martinez-Gil, Paoletti, & Pichler, 2019;
Parry & Tyson, 2008). Thus, AI provides a competitive edge to HRM in enhancing
the performance of employees. Based on the literature review, a conceptual model
is developed.

6. Managerial Implication
Organisations, especially multinational organisations (MNCs), are knowl-
edge-intensive and depend on the interface between AI and the workforce
(Bondarouk et al., 2016). MNCs involves mechanical tasks, for example, han-
dling routine work; thinking task, for example, dealing with customer prefer-
ences and feeling task, for example, empathising with customers (Votto et al.,
2021). Since AI bestows several benefits on organisations, HR practitioners
can incorporate AI to ease the onboarding process, promoting D&I and work
engagement.
When AI was not introduced in HR, engaging the employees was time-­
consuming. So, Managers should try to use robots and NLP, etc., to engage
employees to decrease costs and enhance productivity. Also, an engaged employee
proves to be an asset for the organisation by enhancing the productivity of the
organisation and staying loyal. Therefore, AI tools such as data analytics should
be used to monitor the performance of employees to provide constructive feed-
back to engage employees in meaningful conversations by providing them with
relevant information. The managers can develop strategic plans for AI-based
training to engage employees. This will not only reduce cost but will enhance
productivity. Thus, managers should try to improve the workplace experience of
AI, which will play a major role in managing the performance of employees and
will thereby make work more fulfilling.
With the greater focus of organisations on D&I, the managers can promote
D&I by using AI tools such as data analytics, big data, machine learning and pre-
dictive analysis, and NLP for removing biasness that occurs during hiring, per-
formance appraisal, promotion, paying compensation, etc.Since the demand for
digital skills has increased with the rise of digitalisation, managers should devise
a strategy to train employees using AI-backed tools. Besides the growing impor-
tance of the mental health of employees due to its role in boosting organisational
productivity, managers should use AI tools such as virtual reality, employee pulse
survey, digital biomarkers and wearable technology apps to alleviate the stress of
the employees.
With job skills requirements due to an increase in WFH, AI for upskilling has
played a vital role. Therefore, managers should use virtual and augmented reality
in upskilling the employees post-pandemic.
Furthermore, the AI tools should also be designed in such a way that they are
user-friendly. Then only there will be greater adoption and future use of AI in
managing human resources in organisations. AI developers should try to reduce
complexity while developing AI tools.
52 Akansha Mer

7. Future Research
The research has ample scope for future work. For a holistic overview of AI in
HRM, several aspects which have not been explored much can be explored in
the context of AI. For instance, future studies can be conducted on the interface
between AI and social capital. Since workplace spirituality is gaining prominence
in organisations, AI’s role in promoting workplace spirituality can also be explored.
Future studies can also reflect on how to endow robots with empathetic capa-
bilities like humans. Studies can also be conducted on the role of AI in promoting
green HRM.

8. Conclusion
Thus, it can be inferred that AI is a powerful source of competitive advantage for
contemporary organisations. Post-COVID-19 pandemic, the role of AI in HRM
has increased manifold. AI-powered tools such as robots, NLP, data analytics,
machine learning, etc., have paved the way for managing the HRM practices
effectively (especially in context of onboarding, D&I and work engagement),
thereby leading to decreased intention to quit the organisation, enhanced organi-
sational performance and reduced cost.

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