Artificial intelligence is a branch of science and technology that has been used effectively over the decades in various fields, and now it has become an indispensable part of organizational practices as it is one of the leading technologies in the current era, and now there is an emerging trend of applying AI technologies within the businesses. The central necessity of human resource management is also majorly based on technological approaches as it became a potential need for any human resources department to perform its role in the development of the whole organization. Technologies based on AI are and will be the smart system of the future and it's also changing the processes of human resource management by making it more dependent on advanced technologies. Through the chapter, the researcher will get to know the artificial technologies being practiced in HR practices and explore the probable and potential of technicality of AI in HRM and also the challenges associated with AI in HRM and its future possibilities.
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The concept of Artificial Intelligence (AI) has existed for a century but it is highlighted more effectively after the 1950s (Prasanna Matsa, 2019). Human laborers started replacing machines in the 1970s when computers and the internet started becoming a part of working life (Yawalkar, 2019). 2012 came with a new wave of AI and the investments have been tripled from millions to billions between 2012 to 2016 (Lorenzo Milani, 2017). HR professionals also witnessed the electronic-Human resource (e-HR), where the internet has emerged with human resources (HR) and the concept of the Human Resource Information System (HRIS) came to attention when electronic means are increasing. The HR leader started taking interest in the Human Resource Information System (HRIS) because of its competitive advantages (B. Hmoud, 2020). Now till the present one can notice that AI has come with major advancements and implications in many sectors, a research done by Microsoft showed that AI-based speech recognition application performance was matching human performance (Resse, 2016). Especially during covid-19, AI technology-based programs and applications gave a developmental push to organizations. It became necessary for them to adopt this technology to continue their businesses. Nowadays businesses transforming their practices through many technologies, and Artificial Intelligence is one of the leading technologies that promoting organizations towards productivity.
Artificial intelligence is perfectly efficient to work as the brain of humans and able to give fruitful outputs from different inputs. The data set managed by human resources is quite small in comparison to data science. It became easier to deal with large data with data science. As in any domain of any organization the right techniques are required, the same is applicable to human resource management (HRM) and artificial intelligence (AI) is one of the leading directions to be applied potentially to human resource practices in the present era. With the transformation of time, we have seen the changes in the disposition of jobs that have already grown labor-based to skill-based, and now the skills set requirements are changing into the skill demands that can handle automation technologies. Automated technologies making tasks easier and give efficient and effective results with proper utilization of innovation.
Employees are an important and necessary asset for the organization as their skills and knowledge play a big part in the overall performance and production of the organization. Artificial intelligence (AI) is a technological tool that gives outputs after combining technology and human intelligence. AI tools help save time and energy for employees by self-regulation processes, and this is how AI is affecting the traditional working style of human resources. HR professionals realized that they have to work and prepare the best organizational strategies with AI tools for HR practices like hiring, performance management, etc (Ruby Merlin,2018).
Selvaraj (2019) described briefly about the last four industrial revolution in his article where he mentioned that first industrial revolution i.e; Industry 1.0, was began in 1700s with initiation and launching of engine powered machines by water, coal and steam. Industrialization advanced with the new energy resource such as electricity, gas and oil in 1870s in Industry 2.0. After that the use of electronics and computers has begun and came into Industry 3.0 during 1970s where the use of information technology, microprocessors and robots has been started. Industry 4.0 came with the concept of digitalization, advanced connected devices and technologies. The next two decades is headed towards the Industry 5.0.