Artificial Intelligence: Shifting the Landscape of the Human Resource Ecosystem

Introduction

Since its inception as personnel management the landscapes of human resource management are constantly evolving. The evolution of retaining personnel records on paper to digitizing them, and then the use of algorithms in HRM endeavours can be used to gauge the evolution of the HR-eco system over time. Additionally, the maturity of HR analytics from descriptive to predictive and now to prescriptive features substantiates the AI scope in organizational settings (Margherita, 2020). At present, the HRM is undergoing the process of strengthening its functions of recruiting, developing, controlling, managing and retaining talents through the integration of artificial intelligence. Artificial intelligence can be referred to as a “computer system able to imitate human intelligence” (Varma et al., 2023). Rising demand for transformations at workplace require active participation of leadership to shape the attitude of individuals at workplace to accept these changes (Thakur et al., 2020). Since AI is at its nascent stage, there are paradoxes regarding its implications for the well-being of employees. Extent literature in a particular domain entails conceptual exploration, experimental research designs and case studies to understand the underpinnings of existing theories to this new dynamic, future scope of its implications and employees’ perceptions regarding AI adoption in organizational settings. (Pereira et al., 2021) in their review of demystifying themes within the framework of the antecedents, phenomenon and outcome stated that the deployment and implications of AI vary across the different functions of HRM. Following (Kaushal et al., 2023), the efficacy of HR analytics, HRIS, Big Data, and AI in HRM are the predictors of employee retention, organizational performance, improved decision-making, differentiation in competition, psychological outcomes, and organizational effectiveness. Illuminating the strengths of Robotics, AI and other advanced technologies extant literature suggests the advancement of HR functions and strategies to influence individual and organizational performance in organizational settings (Vrontis et al., 2021).

According to (Prikshat et al., 2023)the assistive role of AI in HRM enhances the experience and job satisfaction of the employees. Furthermore, the validation of AI implications in HRM, (Pan & Froese, 2023), reflected on the challenges and potential applications of AI in HRM, and advised future researchers to concentrate on methodological rigour and theoretical advancement. A good opportunity to conceptually examine and enhance the existing theories in the direction of the “future of work” is now, when there is little literature in the specific field and practitioners are looking forward to reforming HR policies to the successful application of AI. In the same line of interest, we aim to explore interdisciplinary literature and map the dynamics of existing theories in HRM to pave the way for practitioners and future researchers. The objective of the present research is to demystify the disruptions posed by the advent of AI and opportunities for the members of organizations to enhance their status in terms of job roles. Employing the theoretical lens of resource-based view theory this article contributes to the existing body of knowledge by developing a theoretical framework depicting the integration of AI capabilities with human resources and activating the intangible assets of human and automatic intelligence to realize the competitive advantage and organizational performance. The structure of the paper is followed as 1) evolution to the HR eco-system 2) AI as a disruptive tool to workplace system 3) Supportive role of AI in HRM 4) conceptual framework 5) Discussion/Limitations/Implications 6) Conclusion