AI: Peeking through an HRM Lens

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 1. Introduction
• There is insufficient exploration of the likely impact of artificial
intelligence, robotics and machine learning technologies on human
resource effectiveness through particular human resource
management (HRM) programs and processes despite its importance.
• This presentation and subsequent research therefore makes a
contribution to this important field of inquiry , through a literature
review and interviews with a sample of Australian human resource
professionals.
 
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2. Some simple definitions of artificial intelligence, robotics
and machine learning… 
‘the collection of technologies that…excel at specific tasks that
could previously only be performed by humans’ (Guszcza, 2018: 44)
  
‘intelligence exhibited by machines that, with cognitive functions
that are associated with humans…aspects of perceiving, reasoning,
learning and problem-solving’ (Bughin & Michelmen, 2018: 7)

•  
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3. Scope of AI, robotics & machine learning
• Nearly 600 discrete uses for AI…so far
• More than 85% larger US organisations have ‘middle or late stage deployments
of such technologies’ – especially, retail/consumer products,
telecommunications, banking and finance, oil and gas, high-tech manufacturing,
media and entertainment, healthcare and life sciences sectors (Infosys, 2018)
• Ninety seven percent of Fortune 500 companies use AI technologies
(NewVantage Partners, 2018)
• Sixty six percent of executives rates addressing automation skills gaps in their
Top 10 priorities; thirty percent in the Top 5 (Illanes, Mourshed, Rutherford &
Tyreman, 2018)
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4. Growth & productivity predictions
• AI has the potential to double annual economic growth rates and increase
labour productivity up to 40% by 2035 (Purdy & Daughtery, 2016).
• AI could increase productivity by between 0.8% and 1.4% of global GDP
annually.
• AI in factories can reduce operating costs by 20% (Kupper et al, 2018).

BUT
Only 21% Australian organisations have a plan to deploy AI, in contrast to
China where all surveyed organisations have a plan (Kupper et al, 2018). 

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5. AI & HRM: Some key issues Will AI disrupt your industry?

1.Disconnect between views of HR professionals and managers –

55% HR professionals reported that AI will have an impact on their 90

workforce in five years’ time and 10% were not expecting any 80

serious impacts for more than ten years; only 15% thought that ‘it 70
is happening now’ (Harvey Nash, 2017)
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*{Our research broadly indicates that complacency is not wise as
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HR deals with people’s jobs. livelihoods, and subsequent well
being}. 40

2. Limited discussion or research on implications of AI for HRM 30

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3. Lack of understanding of effects of AI on the workforce and 10

all HRM programs, processes and functions – accordingly, a

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lack of national, organisational and HRM policies & plans Executives HR Managers HR fully prepared to support
changes
(especially in Australia compared with China, Singapore,
Malaysia, Taiwan, India & Indonesia)
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6. Implications for HRM programs, processes & functions
I. Human Resource Planning
Need to research actual technologies likely to be adopted by their
organisations; project the workforce (particular jobs, skills,
workplaces) positive and adverse effects; develop plans for
implementation and resolution of projected difficulties including
the impact on staff rce
t o n wor k fo
n g s kil ls a nd impac
i lls , brid g i
AI s k
Consider
https://www.youtube.com/watch?v=7Xz80sVqwKQ

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6. Implications for HRM programs, processes & functions (Contd.)
II. Talent Attraction & Selection
(i) New attractors: Key AI talent wants employee growth and skills development
opportunities; work-life balance; smart teams and smart colleagues; interesting
problems to solve; flexible employment conditions; individualised rewards and
recognition programs – 30% company executives ‘not clear’ how these
technologies will affect skills requirements – predicting the future is never easy
(ii) New selection criteria: skills rather than qualifications; hard and soft skills;
teamwork; change-management capabilities; zest for ongoing learning; lateral
cognitive problem solving; and potential new leadership capabilities – ‘those
with backgrounds in design, data science and logic might be better prepared than
programmers who tend to think in more structured approaches’ (Panetta, 2017)
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6. Implications for HRM programs, processes & functions (Contd.)
II. Talent Attraction & Selection (Contd.)
(iii) New attraction & selection techniques for AI talent: closer integration
between industry and higher/vocational education systems; tapping into the gig
economy; more in-house development and employee referrals; more paid
tertiary internships integrated with study to remain abreast of perennial
change as a residual aspect of this 4IR.
- ‘global hot spots’ (focused labour markets) – e.g. Quid; chatbots (SAP Resume
Match, Entelo and Jobaline);
- virtual competitions and game-based selection techniques (hackathons); and
networking events.
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6. Implications for HRM programs, processes & functions (Contd.)

III. Learning & Development

Infosys (2017) focuses on five key AI skills – development, security, implementation,
training and customer facing skills i.e. not just technical AI capacity
Also – ‘culture of continual learning’ – leadership, team-building, social and
emotional competence, creativity, advanced reasoning and complex problem-solving
skills
- on-the-job coaching and counselling
- blended learning approaches
‘A data-driven culture that blends intuition and analytical insights with a focus on
practical and actionable decisions across all levels’ (Rao & Verweij, 2017: 27).
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6. Implications for HRM programs, processes & functions (Contd.)
IV. Performance Management
• Increased focus on KPIs which assess judgement, creativity and
collaboration/collegiality capabilities, attribution of recognition and
rewards, and a reduction in individual tasks
• Increased employee interdependence and cross-functional teamwork –
team/peer reviews
• Emphasis on leadership (project, team and sectional) capacities
• Widespread use of personal performance tracking devices –
confidentiality and privacy issues? (for example, EU General Data
Protection Regulation, May 2018)
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6. Implications for HRM programs, processes & functions (Contd.)

V. Rewards & Benefits

New trends
- increasing disparity between rewards for different roles and levels
- need to regularly review remuneration structures internally and externally
- individualised reward packages based on specific AI skills
- focus on team/project-based rewards
- more outsourcing to talent platforms with sophisticated monitoring of
performance and return on investment (for example, Mechanical Turk and
Topcoder)
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6. Implications for HRM programs, processes & functions (Contd.)
Mechanical Turk (Contemporary workers)
Key Features
On-Demand Workforce
MTurk provides access to a marketplace of Workers whenever your business needs them. MTurk can connect you to
a variety of skill sets and capabilities via a global workforce that can help you to complete your work whenever and
wherever you need it.
Elastic Workforce
One of the difficulties that businesses face is dealing with demand spikes for certain types of work. You may have one
million images that need to be tagged today, or 100,000 new catalog entries that need to be validated, but only have
that need once per month. MTurk allows you to get that work done easily when you need it, without the difficulty
associated with dynamically scaling your in-house workforce.
Lower Cost Structure
The overhead and fixed costs associated with hiring and managing a temporary workforce can often be significant.
By leveraging the skills of on-demand Workers from around the world, you can significantly lower costs while
achieving results that might not have been possible with just a dedicated team .
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6. Implications for HRM programs, processes & functions (Contd.)
VI. HRM Ethics
# Key issues – employment relations, privacy and employee self-worth
‘I’m not worried about AI giving computers the ability to think like humans. I’m more
concerned about people thinking like computers without values or compassion, without
concern for consequences’ (Tim Cook, CEO, Apple Computers)
Building public confidence - Explaining how decisions reached (when designers don’t
always know
Job disruption – can HR maximise employee retention by intelligent job deconstruction
and reconstruction?
Robots & Ethics
https://www.youtube.com/watch?v=pajCoSTGvas
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7. Conclusion
The underlying theme is the need to consider AI as a means of extending
human potential rather than simply replacing it. The need for HR to develop
new capabilities such as the ability to deconstruct roles into tasks and
develop systems that manage deconstructed sets of tasks is also highlighted
(Willis Towers Watson, 2018).
&
We know from our research thus far in this and our broader research team
activities that:
Many HR professionals are not fully aware of the potential of AI, nor of the
speed with which it is likely to impact organisations (Harvey Nash, 2017).

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 A Concern or Alarmist

“’Business and engineering and financial processes can now draw on huge “libraries” of intelligent functions
and these greatly boost their activities—and bit by bit render human activities obsolete’ Arthur in McKinsey
2017a, p. 34).
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References
Arthur, W. 2017. Where is technology taking the economy? McKinsey Quarterly October 2017
Bughin, J., Michelman, P. 2018, Five strategies for getting the most from AI, MIT Sloan Management Review.
Guszcza, J. 2018, Smarter Together: Why AI needs human-centred design, Deloitte Review, 22: 36-45.
Harvey Nash 2017, Harvey Nash HR Survey 2017.
Illanes, P., Lund, S., Mourshed, M., Rutherford, S & Tyreman, M. 2015, Retraining and reskilling workers in the age of automation.
Infosys Ltd. 2017, Amplifying Human Potential: Towards purposeful Artificial Intelligence, Bengalaru, India.
Infosys Ltd. 2018, Leadership in the Age of Artificial Intelligence: Adapting, investing & reskilling to work alongside AI, Bengalaru, India.
Kupper, D., Lorenz, M., Kuhlmann, K., Bouffault, O., Heng, L.H., Van Wyck, J., Schlageter, J. 2018, AI in the Factory of the Future.
NewVantage Partners 2018, Big Data Executive Survey 2018.
Panetta, K. 2017, The Disruptive Power of Artificial Intelligence – Smarter with Gartner.
Purdy, M., Daughtery, P. 2016, Why AI is the Future of Growth, Accenture.
Rao, A., Verweij, G. 2017, Sizing the Price: What’s the real value of AI for your business, and how you can capitalise?
Willis Towers Watson 2018, The Future of Work: Debunking myths and managing new realities.
 
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