Impact of Artificial Intelligence on Human Resource Management Functions: A Literature Review

Abstract

Artificial Intelligence (AI) is increasingly influencing how organizations manage their human Resource Management (HRM) functions. For example, organizations use AI to shortlist the candidates as per the job description, recommend customised training and development opportunities to the employees, assess employee performance and also support workforce planning. This paper aims to review existing literature on HRM applications and examines both the  benefits and challenges of using AI in HRM. The studies reviewed suggest that AI can increase the speed, help in taking more informed decisions and provide more personalized HR services. However, its adoption also raises important concerns, particularly regarding algorithmic bias, employee data privacy, accountability, organisational readiness, and the replacement of human with the AI tools. Few gaps are also identified after the review. Much of the research has focused on specific applications,  rather than considering all HRM functions collectively. In addition, there is limited empirical research done on analysing the overall efficiency of Human Resource Management functions.