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Impact of Artificial Intelligence on Organizational Transformation


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before the implementation of new technology such as AI in the organization. Are employees ready to adopt the implementation of AI and understand their uses? The relationship between both these questions is a critical consideration for the entire management of HRs and organization as well. The only implementation is not enough. HR professionals should think about the recruitment of technical experts, who operate the AI-based machines or software.

      Note: It shows that AI is mostly used in recruiting and hiring (49%). Source: Littler (2018), https://www.raconteur.net/hr/Artificial Intelligence-hr-human.

      Human interaction is a dominant aspect for the HR profession. The participation of AI is not isolate HR professionals from their work but support them in transforming the process of recruitment, skilling, and performance assessment in reasonably radical ways. The impact of IT on HRM is in three categories: Operational, Relational, and Transformational impacts, which embrace all the areas of HRM [13]. Some of the aspects positively impacted on HRM include the following:

      1 1. Enrich the recruitment and orientation process: Acquiring talent is an area where HR professionals require specific, quick, and measurable results to reduce the time for the hiring process. Discovering talent is a crucial part of AI application in HRM. AI-enriched HRM can process and examine more numbers of resumes to recognize and rate the talent before the process of interview. AI-based technology is applicable to a cross-section in their business [14]. By using AI through automation in the recruitment process, an organization can save time, as well as rest on an accurate assessment of applicants like experience, skills, values, and performance to generate a perfect match. A very popular example of using technology in the recruitment process is the amalgamation of Linked in tools and Microsoft’s Talent 365. First, post the hiring stage and target them. Then, the AI-supported onboarding process helps the organizations to establish a perfect working relationship with new employees. The behavior of employees can also be analyzed and understand better using AI modeling during the process of hiring and onboarding stages of an HR team member. Using AI in the recruitment process, reduce behavioral and observant biases at great extent.

      2 2. Ongoing employee satisfaction and talent retention: Recently, more attention is being paid toward the retention of talent. The talent acquisition as an important activity in the organization, AI can easily remove tons of stressful and repetitive work [15]. It can also help to predict retention and beneficial training program for employees. Losing talent in terms of specific skilling and experience due to employees’ dissatisfaction adds a significant insufficiency and drain of resources.AI empowers HR departments to monitor performance, employee feedback, and work-life balance in real time. Enterprise flexibility along with AI has played a great role in employee engagement and their need to be associated with their colleagues and peers through organizational social networks that develop a sense of belongingness.

      3 3. Enriched management of performance and skilling: Rapid signs of progress in technology are placing the obligation on a current organization and its workforce, to persist competitive and relevant. AI enables the improvement of employees’ skills through exact and on- schedule training. Training and skilling have also turned from classrooms to innovative smart apps. During performance analysis, AI plays a greater role to focus on the individual employee, by empowering the precise processing of high volumes data and also helps to recognize and reward individual accomplishments that would have been overlooked by traditional models. Performance management requires the use of large and separate data sets. This data sets analyzed by AI and discard unparalleled employee’s data, by connecting dots that may have been invisible to evaluators or appraisers.

      4  4. Decreasing administrative load by introducing automation and innovations such as smart chatbots: By replacing human involvement in monotonous processes, AI can permit an HR professional to provide free time to more concentrate on value-adding talent management doings. The use of chatbots has been found to drastically boost human relationships and also increase workforce engagement. Shifting from the outdated employee portal to an employee chatbot model ensures improved communication also.

      5 5. Increased compliance and dependable practices: Compliant documentation, which helps to safeguard the rights of employees as well as empowering their optimal performance, is the ultimate facet of HR functions. The capability to deliver these consequences can often be challenging in the enormously data-dense world of HRM. AI supports an advanced order of employee-specific compliance that merges best HR practices with talent engagement.

       Artificial Intelligence for employee engagement: Using online fast games and quizzes using intranet can engage employees in better ways.Figure 4.4 Effect of AI on Human Resource management.Note: AI contributes toward increase in efficiency, reduction of workforce, better time management, and more objectivity in the functioning HR. Source: Researchers ‘Creation.

       Artificial Intelligence for exit management: It is the area where HR professionals have to take exit interviews of those employees who are leaving the organization. Employees who have previously left their exit interviews can be taken through audio and video recording with the help of AI.

       Artificial Intelligence for succession planning: It is the process where a lot of studies have to be done to finding the right candidate for the future unoccupied position. As traditional succession planning process holds out of human error. AI-based succession planning more suitable to find out the perfect fit for the future vacant position.

      4.4.1 Symbiotic Relationship Between Artificial Intelligence and Human Resource Profession

      The symbiotic relationship of human empathy and decision, collectively with the dominant analytical and advance predictive abilities of AI, is a formula for success in HRM.

      AI role in HR domain for companies is important but no one yet mentioned AI application in removing biases in performance appraisal and management of talent because biasness has been harming the organization at extreme level up to the attrition of talent [16, 17].

      There is a serious necessity that HR professionals start thinking deliberately about their roles and essentially to be more data-driven to stay applicable to future organizations. For this, there is a need to change the culture of decision-making about employees and their work.