The International Journal of Human Resource
Management
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Artificial intelligence – challenges and
opportunities for international HRM: a review and
research agenda
Pawan Budhwar, Ashish Malik, M. T. Thedushika De Silva & Praveena
Thevisuthan
To cite this article: Pawan Budhwar, Ashish Malik, M. T. Thedushika De Silva & Praveena
Thevisuthan (2022) Artificial intelligence – challenges and opportunities for international HRM: a
review and research agenda, The International Journal of Human Resource Management, 33:6,
1065-1097, DOI: 10.1080/09585192.2022.2035161
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Published online: 06 Mar 2022.
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The International Journal of Human Resource Management
2022, VOL. 33, NO. 6, 1065–1097
https://doi.org/10.1080/09585192.2022.2035161
EDITORIAL
Artificial intelligence – challenges and
opportunities for international HRM: a review and
research agenda
Pawan Budhwara, Ashish Malik b, M. T. Thedushika De Silvac and
Praveena Thevisuthanc
a
Aston Business School, Aston University, Birmingham, UK; bUoN Central Coast Business School,
University of Newcastle Australia, Ourimbah, NSW, Australia; cNewcastle Business School, University
of Newcastle, NSW, Australia
ABSTRACT KEYWORDS
Artificial intelligence (AI) and other AI-based applications are Artificial intelligence;
being integrated into firms’ human resource management international human
(HRM) approaches for managing people in domestic and resource management;
employee outcomes;
international organisations. The last decade has seen a organisational outcomes;
growth in AI-based applications proliferating the HRM func- systematic review
tion, triggering an exciting new stream of research on topics
such as the social presence of AI and robotics, effects of AI
adoption on individual and business level outcomes, and
evaluating AI-enabled HRM practices. Adopting these tech-
nologies has resulted in how work is organised in local and
international firms, noting opportunities for employees and
firms’ resource utilisation, decision-making, and
problem-solving. However, despite a growing interest in
scholarship, research on AI-based technologies for HRM is
limited and fragmented. Further research is needed that
analyses the role of AI-assisted applications in HRM functions
and human-AI interactions in large multinational enterprises
diffusing such innovations. In response to these combined
issues—the fragmented nature of research and limited
extant literature, we present a systematic review on the
theme of this special issue and offer a nuanced understating
of what is known, yet to be known, and future research
directions to frame a future research agenda for international
HRM. We develop a conceptual framework that integrates
research on AI applications in HRM and offers a cohesive
base for future research endeavours. We also develop a set
of testable propositions that serve as directions for future
research.
CONTACT Ashish Malik [email protected] UoN Central Coast Business School, University
of Newcastle Australia, BO 1.16 Business Offices, 10 Chittaway Road, Ourimbah, NSW 2258, Australia.
This article has been republished with minor changes. These changes do not impact the academic content
of the article.
© 2022 Informa UK Limited, trading as Taylor & Francis Group
1066 P. BUDHWAR ET AL.
Introduction
The Fourth Industrial Revolution (4IR) marks an increased use of emerg-
ing technologies, such as artificial intelligence (AI), big data, machine
learning, mobile technology, the Internet of Things, geo-tagging, virtual
reality, speech recognition, and biometrics (Azadeh et al., 2018; Shank
et al., 2019). The application of these advanced technologies transforms
the way business is conducted locally or globally and has had a con-
siderable impact on the way work is designed, workers are engaged,
and workplace processes changed (Abraham et al., 2019; Agrawal et al.,
2017; Duggan et al., 2020; Malik et al., 2020a; 2022; McColl & Michelotti,
2019). Indeed, serious concerns and reservations have been voiced
regarding the role of AI in causing job destruction and humanity’s very
basis and essence (Agar, 2019, 2020; Charlwood & Guenole, 2021; Malik
et al., 2020b). Nevertheless, AI and other related intelligence-based
applications bring opportunities for organisations to achieve optimal
strategic business outcomes, such as enhancing service quality, produc-
tivity, cost-effective service excellence (CESE) (Wirtz, 2019), return on
investment (Torres & Mejia, 2017), operational efficiency, customer
engagement and loyalty (Prentice & Nguyen, 2020), employees’ service
quality (Nguyen & Malik, 2022) and reducing considerable operational
and capital cost (Wirtz, 2019). Moreover, such research also delivers
positive individual-level outcomes, such as employee and talent experi-
ences, intention to quit and job satisfaction (Malik et al., 2020c; 2021,
Nguyen & Malik, 2022).
AI refers to a broad class of technologies that allows a computer to
perform tasks that generally require human cognition, including adaptive
decision-making (Tambe et al., 2019, p. 16). A growing debate in aca-
demic research examines different types of AI digital tools and tech-
niques and whether firms can benefit from such business solutions
(Aouadni & Rebai, 2017; Castellacci & Viñas-Bardolet, 2019). In this
regard, the recent calls for academic scholarship on AI in HRM have
received considerable attention in premier HRM journals, including
other related disciplinary areas such as international management, infor-
mation technology, and general management (see Budhwar & Malik,
2020; Buxmann et al., 2019; Jain et al., 2018; Kaplan & Haenlein, 2020;
Meijerink et al., 2018). Thus, research at the interface of AI and HRM
assumes an increasingly multidisciplinary character (Connelly et al.,
2020). However, there is still limited understanding in the AI-HRM
literature about how AI and related technologies can offer solutions for
effective HRM and sub-functional areas and how AI-enabled HRM
functions link to other operational tasks to deliver better results out-
comes for their organisations (Agrawal et al., 2017).
The International Journal of Human Resource Management 1067
Despite the limited knowledge on AI-HRM scholarship, a growing
body of knowledge asserts that contemporary developments in automa-
tion technologies offer remarkable benefits for HRM (Bersin &
Chamorro-Premuzic, 2019; Maedche et al., 2019; Prikshat et al., 2021).
Further, organisations from local and multinational enterprises (MNEs)
have understood the benefits of AI-based tools and techniques to
enhanced employee satisfaction, commitment and job engagement
(Castellacci & Viñas-Bardolet, 2019), productivity (Wirtz, 2019), job
performance, HR cost-effectiveness (Azadeh & Zarrin, 2016); employee
retention (Malik et al., 2020c, 2021; Nura & Osman, 2013), effective
decision-making (Azadeh et al., 2018), while reducing HR-related and
other operational costs (Torres & Mejia, 2017). The growing interest in
examining AI and its impact on sub-functional areas of HRM is rising.
For example, scholars argue that emerging AI-based HRM technologies
can support talent acquisition, development, assessment, and retention
in large technology MNEs (Bersin & Chamorro-Premuzic, 2019; de
Kervenoael et al., 2020; Malik et al., 2021). It can also assist from
recruitment to selection, assessing, and interviewing the most suitable
candidates (Torres & Mejia, 2017; van Esch et al., 2019), including
Industry 4.0 advertisements to take out new job profiles (Pejic-Bach
et al., 2020) and assess employees’ training effectiveness (Sitzmann &
Weinhardt, 2019). The above has implications for IHRM as contextual
influences, such as linguistic, cultural, institutional differences across
borders will need sufficiently diverse databases for AI applications to
minimise any inherent biases in narrow databases and single country
contexts.
Although the extant literature on AI-enabled HRM reports optimistic
outcomes, others argue for examining the negative consequences of these
advanced technologies for both organisations and employees (Huang
et al., 2019). Not attending to adverse aspects may lead to unintended
consequences, such as high employee turnover, decreasing job satisfac-
tion, loss of customer satisfaction, incurring high costs, and eventually
affecting organisations’ overall business performance and goodwill (Li
et al., 2019). Furthermore, scholars point out that limitations usually
happen when adapting AI in HRM due to the complex nature of HR
phenomena, constraints of the small data sets, accountability questions
associated with fairness and other ethical and legal issues, and possible
adverse employee reactions to management decisions via data-based
algorithms (Tambe et al., 2019).
Analysing the use of automation technologies in HRM suggests there
is still limited knowledge of how AI-enabled HRM functions affect
workers, their work outcomes, and overall organisational outcomes
(Castellacci & Viñas-Bardolet, 2019). Furthermore, there is a need to
1068 P. BUDHWAR ET AL.
show how these HR-focused AI applications improve positive outcomes
while reducing negative consequences. Thus, we argue that the influence
of the social-technological context, such as flexible organisational struc-
ture, proper training, dealing with fear and change management, and
upskilling employees, can further strengthen to achieve favourable out-
comes. We also argue that it is also vital to consider personal employee
factors, such as personality and emotional intelligence, as they can
influence business outcomes (Huang et al., 2019).
There is also an ongoing argument in the AI-HRM literature about
identifying the attributes of employees when adapting AI and
intelligence-based technologies in organisations to deploy these technol-
ogies effectively. However, despite the considerable opportunities pro-
vided by advanced technologies in HRM, employees are better able to
perform several tasks that machines cannot do (Agrawal et al., 2017;
Maedche et al., 2019). Thus, scholars argue that augmenting humans
with AI applications rather than replacing them leads to optimised
organisational benefits, as both AI and humans can collectively excel
and perform well (Wilson et al., 2017). We argue that AI-enabled HRM
produces favourable outcomes through Human-AI configuration mech-
anisms. The research base on AI applications from an IHRM perspective
is relatively small, though there are some emerging signs of empirical
evidence from single-country contexts (Nguyen & Malik, 2021, 2022;
Pan et al., 2021; Suseno et al., 2021) or subsidiaries of large technology
multinationals (Del Giudice et al., 2021; Jaiswal et al., 2021; Malik et al.,
2020c, 2021).
Considering the above calls and limitations, a systematic review of
the literature can provide some pathways for researchers. Taking a global
view of the use of AI and advanced technologies in the field of HRM,
we believe this systematic review provides a rigorous assessment of the
extant literature for answering the following research questions:
1. What is the current knowledge of AI and intelligence-based tech-
nologies in the global business context in the field of HRM?
2. How do AI-enabled intelligence technologies affect employee and
organisational outcomes in the global business context?
3. What are the main directions for consideration for future research?
This review aims to answer the above questions focusing on adopting
AI applications in HRM functions in a global context. Second, this
review contributes to AI literature on how automation and AI-based
technologies affect HRM functions by studying outcomes at both
employee and organisational levels, and considering the positive and
negative consequences evident in the extant literature, thus proposing
The International Journal of Human Resource Management 1069
future research directions. Third, this review presents how key
social-technical and personal factors influence positive outcomes at the
workplace. Fourth, we highlight how Human-AI configurations play a
vital role in strengthening positive individual and business unit outcomes.
Fifth, by focusing on the themes of AI and its impact on HRM, we
propose future research propositions to guide theory-building efforts.
By focusing on the how and why of AI adoption, business and HR
leaders must learn to effectively manage the opportunities and challenges
posed by AI applications through appropriate social-technical and per-
sonal interventions and configurations. Sixth, we build a framework that
shows the linkages between AI and intelligence technologies, HRM
functions and their consequences on employee and organisational out-
comes, and how some of these outcomes could be achieved through
social-technical and personal factors by augmenting social-technical and
personal factors.
Methodology
Employing a systematic literature review approach as our guiding research
methodology (Snyder, 2019), this review aims to provide a thorough
assessment of the extant literature on AI and advanced technologies in
the field of HRM, which has implications for the management of HRs
globally. Systematic reviews involve a process of collecting and critically
analysing the literature and the themes emanating from the chosen
studies that are within the scope of the research questions posed and
to constitute a concrete foundation for advancing the knowledge and
theory development on a given topic (Paul & Criado, 2020; Snyder,
2019). Furthermore, such an approach allows a repeatable and trans-
parent process for synthesising findings that ensure overall reliability
(Tranfield, Denyer & Smart, 2003). Therefore, guided by the suggestions
of Tranfield et al. (2003) and Snyder (2019) for undertaking a systematic
literature review in business and management research, we decided on
a systematic approach as the appropriate method for this review to
provide comprehensive coverage of the literature and to locate emerging
themes while ensuring its repeatability.
Selection of articles and qualitative assessment
Driven by our abovementioned research questions for this review, we
included studies that have focused on the use of AI or advanced technol-
ogies in the field of HRM across the international boundaries and a tem-
poral boundary of the last decade as this is a relatively new phenomenon
that has gained prominence since 2010 (2010–2020). A ten-year time frame
1070 P. BUDHWAR ET AL.
was also decided to capture the recent development of studies that explored
AI-advanced technologies and HRM as the field of AI, and intelligence-based
technologies have significantly developed in recent years. Based on the
focus, a range of specific keywords relating to AI, robotics and other
intelligence-based technologies and the HRM discipline were included and
combined in the search string using the Boolean operators, ‘OR’ and ‘AND’.
The keyword search algorithm applied for this review is as follows:
(“Artificial Intelligence” OR “AI” OR “robotics” OR “bots”) AND
(“human resource management” OR “HRM” OR Human resource man-
agement functions” OR “HRM functions” OR “HRM cost efficiency”
OR employee-level outcomes OR “individual outcomes” OR “organisa-
tional outcomes” OR “firm level outcomes” OR “human-collaboration”
OR “employee-experience”).
The next critical decision was to decide which relevant electronic data-
bases to use as search engines. Given that the scope of the review is in
the context of management discipline and technology-related fields, we
selected three well-known search engines that are widely used by man-
agement and business scholars, such as ABI/ProQuest, SCOPUS and Web
of Science. Having decided on the three databases, we applied the search
algorithm on each search engine and filtered the initial research results
for full-text, peer-reviewed articles in the English language and keeping
the time frame of 2010–2020. Then, an initial screening based on the
relevance was performed for the titles, keywords or abstracts to identify
the papers and subsequently screened using inclusion and exclusion criteria
decided for the review. Following other comprehensive systematic reviews
conducted in management (e.g., Christofi et al., 2021), we excluded
non-peer-reviewed journal articles, papers not in English (due to language
limitations), books, book chapters, editorials, commentaries, executive
summaries and (peer reviewed) conference papers. In addition, we only
included papers from the top journals listed in the Australian Business
Deans Council (ABDC – A* and A) rankings as a proxy and signalling
frame for selecting high-quality peer-reviewed articles we included papers
published in journals which are ranked high in a combination of leading
journal ranking lists such as the Australia’s ABDC and the UK’s CABS list.
Like with any research design, researchers have managed the trade-offs
of time, effort and quality in terms of the number of data points (out-
puts) to include in the analysis. We believe the rigour of reviewing in
top-tier journals is much more robust and demanding than other cat-
egories of outputs. This is particularly true for an emerging field which
faces challenges in being accepted in the mainstream premier outlets.
Thus, in our bid to focus more on high-quality outputs, we may have
lost some excellent papers published in the lesser ranked journals and
other outputs identified above as well as some additional themes.
The International Journal of Human Resource Management 1071
Nevertheless, we performed a manual cross-check to screen the papers
for the inclusion criteria further. Moreover, due to different approaches
and perspectives contributed to this emerging field of AI and advanced
technologies and limited papers in the literature, we decided to include
all three types—empirical, conceptual and review papers for the review.
Having screened one hundred and ten (110) papers based on the
inclusion and exclusion criteria, and after removing the duplicate papers,
a qualitative approach was undertaken to further refine the articles by
reading the full text of these papers. Following a preferred guideline for
using two reviewers to select the final sample of articles (Snyder, 2019),
two authors of the research team were deployed to mutually decide on
the final sample of articles for this review, ensuring the quality and the
reliability of the search protocol. During the qualitative assessment, two
authors from the authorship team rated the 110 papers for relevance on
an individual basis after full-text reading and then compared the relevance
with each other. Any deviations in ratings was resolved at discussion
meetings with the rest of the team for including the papers in the final
sample. Out of 110 papers, forty (40) papers were eliminated during the
qualitative assessment, as these papers did not focus on the central ques-
tions posed by this literature review. The process applied for the review
is depicted in Figure 1. A final search yielded a total of seventy (70)
papers that were published in 38 journals. A list of journals and the
frequencies of articles published has been presented in Table 1.
Data coding and analysis
Relevant data from the selected articles were extracted into (Tranfield
et al., 2003) an Excel spreadsheet containing simple categorical data,
such as the article details, year of publication, author details, type of
paper, methodology, research context (industry), key findings and future
research directions that aided easy reading and forming the descriptive
analysis (Tranfield et al., 2003). Following Ererdi et al. (2021), the coding
was conducted using two authors from the authorship team inde-
pendently to ensure the inter-coder reliability and any coding discrep-
ancies were discussed at research meetings for this review. The agreement
between the two authors was 96% and the discrepancies were resolved
by mutual consensus. Once extraction and coding were completed,
in-depth thematic analysis was conducted to locate themes emerging.
As a result, we identified a few common categories of articles on
micro-foundation of AI/robotic collaboration, AI/advanced technology influ-
ence on HRM functions leading to the individual, team and organisational
level outcomes, a range of intervention factors that influence the use of
AI/robotics in the field of HRM and organisational settings. In addition,
1072 P. BUDHWAR ET AL.
Figure 1. Screening flow chart.
several articles had an international focus and included research on the
adoption of AI for HR and related activities by multinational firms (e.g.,
Dwivedi et al., 2021; Li et al., 2016; Oesterreich et al., 2019; Pejic-Bach
et al., 2020; Suen et al., 2019).
Key themes
To visualise the comprehensive picture of how AI and AI-based tech-
nologies affect HRM and human-machine configurations at work and
their influences on employee and organisational level outcomes, we
develop an overarching conceptual framework through this review. This
is presented in Figure 2 and aligns with the above-identified themes in
this review.
The International Journal of Human Resource Management 1073
Table 1. List of journals and the frequencies of articles published.
Journal rating
No Journal name ABDC/CABS No. of articles
1 Academy of Management Annals A*/4* 1
2 Annals of Operations Research A/3 1
3 Annual Review of Organizational Psychology and A*/3 1
Organizational Behavior
4 Australasian Marketing Journal A/1 1
5 Business & Information Systems Engineering A/2 1
6 California Management Review A/3 3
7 Comparative Labor Law and Policy Journal A 1
8 Computers & Industrial Engineering A/2 2
9 Computers and Operations Research A/3 1
10 Computers in Human Behavior A/2 7
11 Decision Support Systems A*/3 2
12 European Journal of Work and Organizational Psychology A/3 1
13 Harvard Business Review A/3 2
14 Human Resource Management Review A/3 4
15 Human-Computer Interaction A/1 1
16 Industrial Marketing Management A*/3 1
17 International Journal of Accounting Information Systems A/2 1
18 International Journal of Hospitality Management A*/3 1
19 International Journal of Human Resource Management A/3 1
20 International Journal of Information Management A*/2 5
21 International Journal of Production Research A/3 1
22 Journal of Business Research A/3 3
23 Journal of Computer Information Systems A/2 1
24 Journal of Hospitality Marketing and Management A/1 2
25 Journal of Information Technology A*/4 1
26 Journal of Retailing and Consumer Services A/2 1
27 Journal of Service Management A/2 2
28 Journal of Service Research A*/4 3
29 Journal of Service Theory and Practice A/1 1
30 Journal of Strategic Information Systems A*/4 1
31 MIT Sloan Management Review A/3 7
32 Organizational Dynamics A/3 1
33 Public Management Review A/3 1
34 Public Relations Review A 1
35 Safety Science A 1
36 Technological Forecasting and Social Change A/3 2
37 The Leadership Quarterly A*/4 1
38 Tourism Management A*/4 2
Total 70
Theme 1: AI and intelligent technologies in HRM functions
A key emphasis has been on how AI and other related intelligence-based
tools and techniques could impact the HRM function as a whole and
its sub-functional domains. Analysing the literature enabled us to focus
on AI-enabled HRM functions by concentrating on sub-functional
domains, such as human resource (HR) planning, recruitment and selec-
tion, training and development, compensation and benefit and perfor-
mance management, and analyse how these AI-enabled digitalised
functions provided novel opportunities for firms and employees.
HR planning and recruitment and selection. Assigning the right person
for the right job is the major challenge for HR planning. However, AI and
other automation technologies make this task even easier in organisations.
1074 P. BUDHWAR ET AL.
Figure 2. An integrated conceptual framework of the influence of AI-based applications
technologies on employee and organisational level outcomes. Note. Items in italics and
asterisks are indicative of areas which need to be tested in future research.
Mainly, AI assists in HR planning by determining future employee needs
and making effective recruitment decisions (Karatop et al., 2015). It is also
evident that AI-enabled recruitment and selection play a crucial role in
attracting and selecting the most talented work pool to the organisations,
as these advanced technologies can access data and make decisions at a
speedy pace and can handle large volumes of information in a time that far
exceeds human capacity (Torres & Mejia, 2017). As a result, AI algorithms
can improve job candidate identification, that is who is most interested and
suited for the job and provide better communication of the job opening.
Influencing job seekers’ technology increases their participation in AI-
enabled recruiting (van Esch et al., 2020). AI also assists in making the
job interview process more effective, so that the interview process is now
changed from face-to-face to internet-based interviews, such as asynchronous
video interviews (AVIs) (Torres & Mejia, 2017). Moreover, Pessach et al.
(2020) found in their studies that using a hybrid decision-support tool
helped HR professionals in the recruitment and placement processes and
increased the impact of recruiters and maximised organisational return on
investment. AI Algorithms allowed HR professionals to identify suitable
profiles for job vacancies, eliminating cognitive biases of race, gender and
sexual orientation that mar human judgement in recruiting activities.
Training and development. The literature highlights that AI supports the
training and development of employees more effectively. Most importantly,
systems could save each current employee’s electronic resumes that provide
The International Journal of Human Resource Management 1075
the organisation with an electronic inventory of its employees. This can help
to track shortages in skills or to develop suitable training programmes. It
can also help organisations to search for an appropriate candidate within
the organisation. Moreover, employees could use these systems in order to
manage their prospective careers. If employees lack any skills, these AI systems
help them identify their training needs and complete the required courses.
Further, online or virtual training provides a couple of benefits for both
the organisation and employees. AI assists HR managers to assess training
effectiveness and making decisions on employee competency, including
emotional and intellectual capabilities and experiences level, in order to assign
the right employee with the corresponding talents to the correct positions
(Karatop et al., 2015; Sitzmann & Weinhardt, 2019).
Compensation and benefits. Our analysis presents that automation in payroll
systems supports HR professionals in efficiently handling all HR payroll
and related value-added activities. This is because AI technologies can track
all types of employee data, including employee personal details, changes
in personal information such as dependants, or marriage and beneficiary
changes (Bussler & Davis, 2002). Moreover, the skill supply and demand gap
obtained from the databases helps determine an organisation’s compensation
and benefits plans (Pessach et al., 2020). AI systems also assist managers
and experts in collecting the most pertinent information about required
employees’ compensation and benefits systems. Specifically, these systems help
to calculate and determine the salary parameters of employees concerning
their jobs (Mehrabad & Brojeny, 2007)
Performance management. AI-enabled performance management tools and
techniques also provide multiple opportunities for both employees and
organisations. For instance, a fuzzy multi-attribute decision-making tool
leads to a fair evaluation of employees. Notably, this tool helps identify
employees who need further improvements in some factors and the magnitude
of improvements needed (Manoharan et al., 2011). Moreover, digital
performance tools assist managers to assess employee performance or to
recommend any required improvements and take corrective actions for
an employee based on expert opinion such as providing training, talent
enhancement and further qualification wherever required (Azadeh et al.,
2018; Manoharan et al., 2011) .
Implementation challenges. Although many studies highlight the need to adopt
AI and automation intelligence technologies in HRM to obtain optimised
benefits, how these systems are running is still a bottleneck in AI research.
Most importantly, how organisations make decisions on employees based
1076 P. BUDHWAR ET AL.
on the outputs provided by AI-based systems is not primarily transparent
to employees (Connelly et al., 2020). There is an argument how employees
like gig workers and workers, who work distantly from customers and
organisations, monitor through AI-based technologies (Connelly et al.,
2020). Scholars further claim that when employees do not understand how
decisions have been made using AI-based systems or cannot accept these
decisions, it leads them to adversarial behaviours in organisations (Tambe
et al., 2019). However, only limited research is noted on examining how
to diminish negative consequences due to the technology adaptions in
HRM functions.
Ethical and legal issues. Employees need to know what data is collected
about them and determine whether they are provided with the opportunity to
verify their collected information produced by the relevant systems. Employees
also need to know how these AI-based decisions affect their outcomes,
including their attitudes and behaviours (Connelly et al., 2020). In this regard,
employees need open and transparent communication to ensure the AI
systems are working promptly, securely and reliably (Wilson et al., 2017).
On the other hand, the literature points out that organisations communicate
to employees what technologies are being used and how expert systems
make employee-related decisions (Connelly et al., 2020). Furthermore,
ethical issues from China and Global South-East Asian countries point
to intensifying surveillance and ‘getting in workers’ heads’ (Houser, 2018;
Kshetri, 2021; Wong & Liu, 2019), and there are several racist and sexist
biases prevalent in some AI applications (Moosajee, 2019).
Way forward. Some studies emphasise that AI-enabled HRM functions,
particularly e-based performance management and training and development,
become more effective when improving communication (Bharadwaj &
Shipley, 2020; Bititci et al., 2016). For instance, IBM uses clear dialogues
between managers and employees on all valuable insights that have been
obtained from analytics and AI capabilities, and they are readily available
to both the HR division and employees (Kiron & Spindel, 2019). It is
also argued that a feedback loop is needed for learning and innovation in
organisations (Grønsund & Aanestad, 2020). Furthermore, Castellacci and
Viñas-Bardolet (2019) argue there is a need for developing automation-based
communication technologies in organisations as these advanced algorithms
facilitate communications and informal networks, enrich the information
flow between employees and organisational managers and create new bonds
with external agents. Thus, future research needs to focus on the how, why,
and questions concerning the nature of feedback flow between organisations
and employees related to AI-enabled HRM applications to minimise the
The International Journal of Human Resource Management 1077
impact of any unfavourable consequences at the workplace. Accordingly, we
propose several propositions. For this theme we propose that:
Proposition 1. A two-way, open and timely feedback incorporating inter-
cultural and contextual knowledge in local and global organisations in the
design and implementation of AI-enabled HRM applications can minimise
the negative consequences of AI applications.
Theme 2: impact of AI-enabled HRM applications on business and
employee outcomes
Positive individual outcomes. We found from the extant literature that AI-
enabled HRM affects both employees and organisations. Most importantly,
these AI-focused HRM create favourable employee outcomes such as job
satisfaction, commitment, employee engagement, and participation, thereby
increasing their performance (Aouadni & Rebai, 2017; Azadeh et al., 2018;
Castellacci & Viñas-Bardolet, 2019). Employees can also use the internet
to create realistic expectations and perceptions of their working conditions
and to foster their competencies and training (Castellacci & Viñas-Bardolet,
2019). Moreover, AI applications can free up humans and their time for
several predictable and routine tasks (Maedche et al., 2019). On the other
hand, the literature also points out how these automated technologies can
negatively affect employees. For instance, job insecurity, high employee
turnover intentions, increased stress and negative attitudes and behaviours
towards new technologies implemented are negative employee consequences
that an organisation must confront. Moreover, employees’ interaction
with internet use raises issues of employees’ well-being at the workplace
(Castellacci & Viñas-Bardolet, 2019).
Positive business-level outcomes. Automation technologies in HRM impact not
only employee-level outcomes but also influences business-level outcomes. The
literature on AI-enabled HRM adoption suggests that it leads to productivity
gains, cost reduction and operational efficiencies (e.g. flexibility, scalability,
safety and reliability), customer engagement and loyalty (Botha, 2019; Lu
et al., 2020; Prentice & Nguyen, 2020; Ransbotham et al., 2017; Tarafdar
et al., 2019). AI can also yield greater returns on investment by providing
cost-effectiveness to the organisation (Torres & Mejia, 2017). The other
business-productivity outcome of the AI technology is cost-effective service
excellence (CESE), which refers to organisations simultaneously among the
best performers in their competitive market regarding customer satisfaction
and productivity. For example, Amazon, a world-leading online retailer, and
Singapore Airlines have achieved the CESE milestones. Emerging technologies
such as AI, big data, machine learning, mobile technology, the Internet
of Things, geo-tagging, virtual reality, speech recognition, and biometrics
1078 P. BUDHWAR ET AL.
bring enormous opportunities for extensive service innovations that have the
potential to enhance the customer experience, service quality and productivity
richly, all simultaneously (Wirtz, 2019). Service robots and AI are the other
examples that are also likely to provide exceptional economics of scale and
scope, as they only incur bulk costs at their development stages. However,
robots used at information counters incur a low cost, whereas entirely virtual
robots (such as voice-based chatbots in an app or on a website) incur close
to zero incremental costs. Robots can collect data from various sources: the
internet, cameras, microphones, sensors, and organisational knowledgebase
and CRM systems. The robot can identify a customer using biometrics
(facial and voice recognition systems) and can provide highly customised
and personalised service on a scale at a small marginal cost (Wirtz, 2019).
Negative individual outcomes. Although the positive consequences of advanced
technologies are emphasised in the literature, several negative issues have also
been identified. For instance, improper use of such technologies in HRM may
lead to high employee turnover. Although service robots significantly contribute
at the market level, employees are considered the most critical assets in people-
intensive services. Moreover, service robots can only perform cognitive and
analytical tasks that require low levels of emotional or social complexity.
On the other hand, services connected with high emotional or social
complexity require emotional authenticity, which typically humans are
more adept at displaying. Moreover, tasks that are highly complex and
need high emotional-social skills need to be performed by humans.
However, such tasks may be augmented by robots and AI. Therefore,
service robots may not be a key source of competitive advantage beyond
the short-to-medium term (Wirtz, 2019).
Adverse business-level outcomes. While the 4IR transforms the way of
doing significant activities in organisations, it is still a debatable topic how
effectively it impacts the organisation’s people, process, system, and structure
it is still a debatable topic. More studies discuss the severe effects of adapting
automation-based technologies in the workplace. For instance, Dwivedi et al.
(2021) claim that, by 2030, 70 per cent of business operations will have
adopted some form of AI technology within their business or manufacturing
processes. Scholars further predict that Smart Technology could replace 57%
of existing jobs within the OECD, by AI, Robotics, and Algorithms, and
most organisations are under pressure to make any progress on building
AI data analytics capabilities (Brougham & Haar, 2020).
System-level challenges. Brougham and Haar (2020) also found in their study
that threat of technological disruptions leads to employee job insecurity and
The International Journal of Human Resource Management 1079
thereby increased turnover intentions. They also argue that employees feel
fewer technological disruptions when they have fewer job mobility options.
This study further asserts that, although employees leave organisations, turnover
leads to adverse effects, including low employee job satisfaction. Thus, many
studies assert that technological advancements in organisations increase fear
among employees for their tasks and jobs, which may be adversely affected
due to these advanced technologies. Moreover, employees’ negative attitudes
towards technological evolutions are another significant barrier to successfully
adopting and implementing advanced technologies in the workplace (Brougham
& Haar, 2020). Thus, there is a need to answer how to alleviate fear among
employees for the implementation of new technologies in HRM functions.
In this regard, researchers argue that proper and meaningful training
is highly valued for reducing employees’ negative feelings towards new
technological adaptions (Brougham & Haar, 2020). Furthermore, Tambe
et al. (2019) argue that organisational change practitioners need to accom-
modate change perspectives required to carry out technology innovation
in organisations. Training also enables employees of organisations to learn
routines, memorise relevant information and understand how to use IT
systems (Wirtz, 2019). Thus, creating a new culture and organisational
redesign helps overcome the technological obstacles at the workplace.
Also, scholars claim that appropriate organisational culture is required
for the successful long-term implementation of automation technologies
(Bititci et al., 2016). However, reducing fear among employees is not
studied well in the literature. This needs further investigation. Therefore,
we formulate the following proposition:
Proposition 2. Lack of effective fear and change management training can
rouse employees’ fear of AI-enabled HRM functions, thus increasing their
intentions to leave their organisations or negatively impact their performance.
Theme 3: configurations of human-AI-enabled technologies interplay at the
workplace
Use of digitalized co-workers. It is not uncommon to see different forms
of AI-driven technologies deployed in organisational contexts, for example,
involving logical decision-making and enhanced cognition, previously
performed by humans (Grønsund & Aanestad, 2020). The extant literature
provides limited evidence of such applications as the field is still evolving.
However, there has been a noticeable surge in studies concerning human-
AI collaboration in the last 5 years (2015–2020). Nevertheless, this is not
steady and consistent, leaving more room for conceptual and empirical
studies within AI/BOT applications and human interactions. Recent research
on service employees, in particular studies on customer service frontline
employees, offers evidence of utilisation of intelligent bots and automation
1080 P. BUDHWAR ET AL.
(e.g. voice recognition assistants, chatbots and other service automation
systems) to streamline processes and improve task efficiency (e.g. Henkel
et al., 2020; Li et al., 2019; Prentice et al., 2020b).
Gradual job-replacement thesis. Firstly, in our observations of extant
literature, scholars have acknowledged the role of AI and intelligent
technologies in accelerating specific tasks and processes while noting that
AI deployment resonates a risk of ‘human replacement’ (Li et al., 2019).
In their theory of job replacement through AI, Huang and Rust (2018)
significantly contributed to the literature concerning this double-edged
effect of AI in services as to conceptualise how AI reshapes service and
how AI may replace service workers entirely, thus suggesting employees
to develop specific skills—intuitive and empathetic skills that AI is not
yet capable of holding to it. Furthermore, their theory asserts that while
service employees focus on developing their intuitive and empathetic
skills, AI may help take care of analytical tasks that save human time
and resources.
Apart from this theory, only a handful of studies have theoretically
or empirically investigated the effects of human-AI configurations, what
tasks can be best performed by AI and intelligent technologies, and
what skills and competencies employees need to develop in AI-driven
organisational settings. A significant number of scholars have recently
acknowledged more ethical and justice to consider the human worker
in the loop where most of the studies encouraged augmenting employees,
rather than a replacement as the technology itself in organisational
contexts (e.g. Dwivedi et al., 2021; Glikson & Woolley, 2020; Grønsund
& Aanestad, 2020; Maedche et al., 2019; Metcalf et al., 2019). These
studies have alluded to different roles or acts or skills that employees
should play and develop at work to remain in the loop and cope with
their roles being augmented from AI/intelligent technologies for better
organisational results. Several scholars agree that employees must acquire
new skills—to work with AI or expand their existing skills focused on
emotions, judgement, innovation, personal relationships and soft skills
(e.g. Agrawal et al., 2017; Huang et al., 2019; Huang & Rust, 2020;
Larivière et al., 2017; Rampersad, 2020; Ransbotham et al., 2017; Wilson
& Daugherty, 2018). Doing so will help utilise their knowledge and
skills in heterogeneous tasks organisational value addition activities. The
role of AI and AI-enabled technologies can play a complementary rather
than competing a competing role with humans, as it helps interact with
customers or co-workers/team members and amplifies human capability
by dealing with high volume analytical and routine tasks or offering
efficient, personalised services on a scale (e.g. Agrawal et al., 2017;
Huang & Rust, 2020; Wirtz et al., 2018). Building on different
The International Journal of Human Resource Management 1081
capabilities that human workers and AI/intelligent technologies can offer,
we can develop a better human-AI configuration, and thus, the following
propositions are offered:
Proposition 3a. AI/intelligent technologies can augment human capacity by
delivering routine (homogeneous) high volume analytical tasks while leaving
the non-routine (heterogeneous), judgment-based low volume and non-
analytical tasks to be performed by humans.
Proposition 3b. With the increased augmentation of humans, HR managers
can leverage AI/intelligent technologies to deliver transformative and innovative
solutions for acquiring, developing and retaining talent, thus enhancing
employee experience and engagement propositions.
Re-inventing and re-imaging self for better alignment. In further reaction
to the above proposition, we assert our argument on employees’ particular
skills to better fit human-AI configurations? The extant literature notes the
importance of re-skilling, job redesign and training workers to use intelligent
agents or AI technologies (e.g. Aleksander, 2017; Grønsund & Aanestad, 2020;
Larivière et al., 2017; Ransbotham et al., 2017). Nevertheless, this stream
of research tends to be less conclusive on which specific skills a worker
should adopt or develop to work together with AI depending on the nature
of AI technology(ies) being used at work. Wilson and Daugherty (2018)
introduced the term ‘fusion skills’—to define the skills that employees need
to develop that enable them to work effectively in the human-AI interplays
at work. They assert that organisations and the management teams should
use the full potential machine and human intelligence through effective
collaboration to transform their operations into the next level of business
competition to capitalise on market opportunities. Malik et al. (2021) found
the presence of talent supply chain bots for acquiring, developing and
retaining talent and enhancing their employee experience (EX) through
hyper-personalisation of the talents’ EX. To this end, literacy on using
algorithm-based systems and intelligent agents, we would call ‘AI literacy’,
help human workers better collaborate with the systems and ensure the
work is getting through AI/intelligent technologies. The underline notion
that the positive effect of AI/intelligent technologies can be enhanced when
employees have better fusion skills and literacy to work with AI/intelligent
technologies, we propose the following:
Proposition 4a. The positive effect of human-AI/intelligent technologies
configurations will be stronger when employees have fusion skills and AI literacy.
Proposition 4b. The positive effect of AI-assisted talent applications is likely to
provide a positive employee experience for talents through hyper-personalised
1082 P. BUDHWAR ET AL.
talent development opportunities.
AI-mediated social exchanges. Thirdly, we note that studies on employee-level
outcomes as a result of human-AI interplay at work show positive empirical
effects or conceptual viewpoints regarding the benefits through such exchanges
(e.g. Hohenstein & Jung, 2020; Metcalf et al., 2019; Wilson & Daugherty,
2018), adverse effects (e.g. Brougham & Haar, 2020; Li et al., 2019) or
mixed-effects (e.g. Henkel et al., 2020; Prentice et al., 2020a, Prentice et al.,
2020b). The studies selected for this review examine employee outcomes
such as perceived trust, performance, job satisfaction, affective well-being,
turnover intention/retention, and job insecurity.
Research on frontline services can be found in a dominant context
concerning human-social robot/intelligent machines that found a range
of employee level outcomes, including customers’ perspective of service
performances. For example, Henkel et al. (2020) found mixed outcomes
of service employees in two centralised call centres in the Netherlands,
augmenting service employees with AI emotion recognition tool improved
the effectiveness of controlling customer emotions and subsequently ele-
vated their affective well-being. Nevertheless, it causes a higher level of
stress at the initial phase of the technology. Further evidence suggests
that despite employees integrating with AI and related technologies, a
range of social support and inducement is needed to cope well with the
nature and extent of changes in organisational workplaces. Li et al. (2019)
provide evidence that though the relationship between AI and robotic
awareness and employee turnover intention is related, the strength of the
relationships may moderate from the perceived organisational support
and competitive psychological climate from a sample of hospitality employ-
ees of China. Investigating the extant literature, we build on a collective
term - social-technical interventions, wherein scholars have noted the
presence of flexible organisational structures, supportive leadership, oppor-
tunities for upskilling, job redesign, change management training and
overcoming their fear and anxieties (e.g. Aleksander, 2017; Dwivedi et al.,
2021; Li et al., 2019; Lu et al., 2020; Robert et al., 2020). Further, the
high quality of AI-mediated exchanges can lead to high levels of EX,
which can trigger the norm of reciprocity, such that positive EX of employ-
ees of such applications can result in greater employee commitment and
job satisfaction (Malik et al., 2021; Nguyen & Malik, 2021). This approach
can potentially elevate positive employee outcomes when using AI/intel-
ligent technologies at work. Accordingly, we propose the following:
Proposition 5a. The positive effect of AI and intelligent technologies on
employee outcomes will be strengthened in the presence of supportive social-
technical interventions at work.
The International Journal of Human Resource Management 1083
Proposition 5b. The quality of AI applications can positively affect EX, thus
triggering a norm of reciprocity by employees in the form of high levels of
employee commitment and job satisfaction.
Some AI scholars assert that employees are considered the most
critical assets and can react better than machines (Agrawal et al.,
2017; Wirtz, 2019). Moreover, researchers argue that personal factors,
such as employees’ personality traits, affect people’s cognitive, affective,
and behavioural outcomes (Abubakar et al., 2019). This is because
most employment actions affect the socio-psychological status of
employees, such as personal status and perceived fairness (Tambe
et al., 2019). Moreover, some scholars argue that employees must
emphasise their work’s empathetic and emotional dimensions (Huang
et al., 2019).
Although service robots can perform cognitive and analytical tasks
which require low emotional or social complexity, services connected
with high emotional or social complexity require emotional authenticity,
which a human can only display. Moreover, tasks that are highly complex
and need high emotional-social skills need to be performed by humans
and augmented by robots and AI. Henkel et al. (2020) argue that when
service employees augment with an AI emotion recognition tool lead
to regulating emotions in customers and enhancing customer relation-
ships. However, augmentation with AI technology leads to extra stress
and requires roles changes.
Agrawal et al. (2017) emphasise that demand for employees increases
in the workplace, as they can engage well with customers using emo-
tional intelligence and creating new opportunities. Thus, we put forward
the following proposition: developing emotional intelligence and sup-
porting specific employee personality types can lead to effective and
productive customer interactions.
Proposition 6. Developing emotional intelligence and identifying and
supporting certain personality traits of employees can lead to effective
perceptions of AI-enabled HRM functions and leads to positive and
productive engagement of customers.
Many new relationships need to explore what contextual factors
cause employee outcomes to turn into a positive or negative state,
what boundary conditions would change the attitudinal and behavioural
outcomes in human-AI interplays, and what perceptions are evolving
in the use of human-AI collaborations in different industry settings.
Future research could explore these emerging issues to expand the
depth of extant literature.
1084 P. BUDHWAR ET AL.
Theme 4: ethical and legal challenges in using AI and intelligent
technologies in an international HRM context
Ethical and moral issues. Beyond the increasing popularity of adopting AI-
enabled intelligent applications and technologies in organisations worldwide,
a central theme in the extant literature is to address the vital aspect
concerning ethics, accountability, trust, fairness and legal implications of using
AI-driven technologies and autonomous systems at workplaces. The issue of
equity, diversity and inclusion (EDI) is also vital, as early applications of
AI by large technology corporates such as Amazon revealed biases against
women in hiring. In other tech firms, biases against people of colour in the
promotion and career advancement decisions are also noted. A lot more
work is needed to reduce biases by making high-quality AI applications.
Recent research by Nguyen and Malik (2021, 2022) points to the
importance of AI service quality and knowledge sharing in organisations
to improve the experience of employees’ service quality and customer
satisfaction. However, very few review studies have identified the above
topics, such as reviews by Dwivedi et al. (2021) and others (De Stefano,
2019; Glikson & Woolley, 2020; Robert et al., 2020; Tambe et al., 2019).
Firstly, the responsibility of decisions made by AI/intelligent technologies
and the gravity of such decisions against human value judgement remains
a challenge, as discussed by Dwivedi et al. (2021). Secondly, there are
instances where moral values come into consideration that could be
missing in the radar of AI-driven decision making. To further explain,
Tambe et al. (2019) discussed two associated challenges on accountability
concerns and possible adverse employee outcomes in reaction to man-
agement decisions by algorithms. In particular, employee resistance to
AI-driven decisions may be caused when the decision could be biased
to certain groups of organisations based on data patterns and frequencies
that AI captures may raise concerns in a diverse employee base in a
multi-cultural organisation setting. However, AI/intelligent technologies
perform better than human judgements in repetitive situations rather
than heterogeneous case-based scenarios (Tambe et al., 2019). Thus, a
careful delegation of work on what decisions algorithms may be respon-
sible for should be determined to gain a mutual advantage of having
accurate and effective decisions without confronting ethical and account-
ability concerns.
Trust in AI. Researchers have raised the concern of trust as it has
been commonly recognised that lack of trust and ethical dimensions of
AI/intelligent technologies in data exchange and sharing. Featuring
human trust in AI, Glikson and Woolley (2020) proposed a framework
that has elements in shaping users’ cognitive trust (rational thinking)
and emotional trust (affect-based). According to authors, in building
The International Journal of Human Resource Management 1085
human’s cognitive trust in AI, role of tangibility (physical presence of
robots), transparency (underlying rules of operation and rationale of
the technology), reliability (technology trustworthiness for expected
behaviour), task characteristics (functional abilities of robots) and imme-
diacy behaviours (extent of physical/psychological closeness – social
robots) are said to be important antecedents. For an emotional trust,
the role of anthropomorphism (human-like features) and immediacy
behaviours (responsiveness) have been identified, in addition to the role
of tangibility (Glikson & Woolley, 2020). However, we should note a
lack of empirical research on trust issues of adopting AI and autono-
mous related systems, as it is not investigated how trust could be engen-
dered in different organisational settings (e.g. healthcare, finance,
telecommunication and transportation).
Regulation and ethics. Finally, in terms of legal and fairness aspects of AI/
intelligent technologies, the review identifies the studies of De Stefano (2019)
and Robert and colleagues (2020). The advent of advancing technologies has
increased legal implications in setting new laws, issues related to termination/
redundancies of employment, liabilities to workers (e.g. injuries) caused by
bots and protection of personal information. De Stefano (2019, p. 3) asserts
on ‘jobs of the future’, which requires high technical skills, where regulators
should allow employees to be equipped with relevant high-tech skills to
be employed in modern roles of working and take measures to absorb
‘occupational shocks’ caused by workplace automation and intrusive business
practices which could result from ‘management by algorithms’. Thus, studies
such as Robert et al. (2020) stress designing AI/BOT systems to support
workplace fairness and ethics, ensuring such work organisation is mutually
beneficial to humanity and organisational efficiency goals. Theoretical lenses
of organisational justice (including three types of fairness: distributive,
procedural and interactional) and utilitarian theories have been applied in
the discussion of ethical and human aligned- AI/robotics work settings.
(Robert et al., 2020).
Although originally developed for the EU, the establishment of the
Global Data Protection Regulation (GDPR) as key legislation dealing with
data protection on privacy issues is gradually finding its place in different
countries, showing some evidence of harmonisation. Yet, the enforcement
is problematic in the context of MNEs and the large IT MNEs who are
developers of such AI applications and products, making the accountability
of such applications and data ownership and privacy issues a complex
problem. Taken together, the findings and conclusions of the studies
suggest that potential adverse effects, i.e. ethical concerns on biases in
algorithmic decisions, trust and reliability issues and other issues related
1086 P. BUDHWAR ET AL.
to employment arise from using AI and intelligence technologies at work,
could be minimised using context-specific, transparent guidelines on ethics
and accountability. These guidelines should address all possible concerns
in HRM functions organising work from human-human and human-machine
collaborations that will positively engender individual and organisational
level outcomes. Therefore, we propose;
Proposition 7. The presence of transparent, ethical and accountability guidelines
for using AI and AI-enabled intelligence technologies at work will positively
influence AI-enabled HRM functions, human-AI configurations, and individual
and organisational level outcomes.
Implications for theory and practice
Our review analysed the extant literature, presented opportunities and
challenges of AI and other automated technologies for HRM, exploring
how the automated HRM functions can impact employee and organi-
sational outcomes. From the extant literature, we found that AI and
other related automation technologies offer numerous opportunities for
HRM functions, particularly in attracting the star performers, enhancing
training effectiveness, identifying skill-gaps and recommending any
required training and development for employees, assisting in employee
payroll, effective decision-making on employees, while reducing the costs
and time, cognitive biases made by humans in HRM activities (Karatop
et al., 2015; Kshetri, 2021; Pessach et al., 2020; Torres & Mejia, 2017).
Thus, AI and related intelligence technologies play a crucial role in
strengthening HRM functions and activities.
Moreover, our review highlights that AI-enabled HRM functions can
impact both employees and organisations. For this reason, there is a
need to study some influential factors which may further strengthen
favourable outcomes. Thus, we argue social-technical interventions and
employee factors could influence positive consequences at the workplace.
Furthermore, literature argued that AI and advanced robot technologies
might take human jobs (Wirtz, 2019). However, some arguments of
augmentation suggest that instead of automation, it is the importance
of AI-human configurations in the effective use of AI-enabled HRM
functions that will deliver better outcomes.
Although literature points to AI as an asset, the extent to which it can
be classified is questionable and unclear, as AI and other automation
technologies always need to adhere to privacy, legal, moral and ethical
principles. Further, the service quality of AI applications, their design,
and delivery attributes are vital for the ease of use and EX. Hence, further
research is needed on developing measurements for AI service quality,
The International Journal of Human Resource Management 1087
AI attributes and AI-mediated knowledge sharing mechanisms. Though
some progress has been made in developing measures for AI-service
quality and its attributes (Nguyen & Malik, 2021), further work is needed
for a range of AI inputs, processes and outputs to advance the field fur-
ther. Thus, considering clear, transparent legal, ethical, and accountability
guidelines are necessary for prompting favourable consequences due to
the automation of HRM function at the workplace. Additionally, there is
also a need to have sound principles and guidelines on analysing how
effectively AI can augment humans and the possible impacts of these
configurations. Finally, we believe that the model presented and propo-
sitions developed in this review will provide a pathway for future research-
ers to examine how AI-focused HRM functions enhance positive outcomes
in organisations through some interventions and conditions.
In line with the opportunities provided by the intelligence technolo-
gies, this review also provides some practical implications for managers,
practitioners and policymakers in organisations. As per this review,
advanced automated technologies shape, assist and change the handling
of HRM activities in organisations. As a result, AI and related automa-
tion technologies are not only helping attract and select high calibre,
but they also help in providing prompt and effective training and devel-
opment to employees in handling massive employee data and assisting
managers to make better decisions for their employees. The supportive
role provided by the technologies in HRM function eventually leads to
cultivating favourable employee outcomes such as enhanced employee
participation and job satisfaction, commitment and job performance.
Thus, it is possible to boost organisational outcomes, such as enhanced
performance, productivity, efficiency, cost-effectiveness, and customer
satisfaction and service quality. However, on the other hand, it is the
responsibility of organisations to ensure all legal, moral, and ethical
guidelines on how to use these technologies in HRM, as they can affect
workers and the working process.
Most importantly, it is vital to understand how employees perceive
and behave in response to technological advancements. Thus, based on
this review, we suggest that developing favourable and supportive
social-technological interventions such as flexible organisational structure,
supportive leadership, ethical workplace culture, change and fear man-
agement training, upskilling employees and redesigning job roles will
lead to enhanced positive outcomes in the workplace. Moreover, we put
forward that creating favourable personal factors of employees, such as
personality and emotional intelligence, also assist in creating those pos-
itive results for organisations. Finally, our review also greatly recom-
mends the importance of AI-human configurations at the workplace to
optimise the benefits offered by technologies.
1088 P. BUDHWAR ET AL.
Despite the increasing attention among scholars on AI and intelligent
based technologies in augmenting human potential and elevating organ-
isational outcomes, detailed research concerning its effect, practices/
techniques to effectively use AI-human configurations, and other related
topics largely remain unexplored. Nevertheless, this systematic literature
review unveiled many potential research areas and developed research
propositions. For example, future studies might want to theorise what
a priori conditions organisations (e.g. cultural and strategical influences)
need to adopt for an AI-driven HRM function and then test their effects
on employee and organisational level to verify its effectiveness.
We further suggest scholars examine organisational and HRM approaches
by making choices regarding delegation of work and decision-making
between humans and AI technologies for achieving a better combination
between the human-AI interplay at work. Kshetri (2021) provides ten
case examples of AI usage in domestic, government and global multina-
tional enterprises covering different aspects of HRM’s functional practices,
such as recruitment and selection (e.g. in WeChat recruiting, DBS’s Jim,
Talkpush’s Stanley and Ajingas’s talent management tool) and other talent
management, development and utilisation tools (e.g., EY’s Goldie, Supa
Agent’s DIANE, Leena’s AI chatbot and Daeyea’s ‘brain surveillance device).
Therefore, it is crucial to investigate how job redesign and upskilling of
employees can be utilised to facilitate changes in future organisational
work. Specific areas of HRM functions, for example, predictions of human
resource planning via AI-enabled HR analytics, personalised coaching on
employee career development, a personalised recommendation for training
and upskilling, could be vital applications for producing insights for HR
practitioners to organise well in the future world of work. Apart from
the positive effects, future studies might also look at potential conflicts
at an employee and organisational level. These include conflicts, such as
breaches between human and social robots’ psychological contract, identity
struggles and cognitive dissonance of coping with non-humans and
humanoid-based systems at work.
Papers in this special issue
We highlight the current state and potential areas of future research on
the very topic from our systematic literature review in the first section that
pave the path to this section, where we introduce cutting-edge research of
challenges and opportunities of AI in the international HRM context. We
received a total of 25 manuscripts but following a rigorous editorial and
double-blind reviewing AQ1of papers by expert scholars in this emerging
field, whom we sincerely thank, we included six exciting and rigorously
executed studies relevant to research for an international HRM context.
The International Journal of Human Resource Management 1089
The contributions span 24 European countries, including data in different
papers on subsidiaries of several Canadian, French, Irish, Swiss, the US
and UK, multinational corporations (MNCs), including domestic firms and
MNCs from India and China. The contributions include quantitative, qual-
itative and conceptual papers. The focus of these papers was on AI schol-
arship in IHRM, ranging on aspects such as higher-level debates on
automation and augmentation, firm-level productivity and performance, the
impact of AI-enabled applications on HR effectiveness and individual-level
outcomes, the specific impact of AI-enabled HRM applications on individual
outcomes, and the impact of a bundle of HRM practices on skills needed
by employees and HR practitioners for managing change. A substantive
review of the field is also included in this special issue.
Presented in the order of propositions, the first paper by Del Giudice
et al. (2021) presents data from intercultural contexts (partially supports
Proposition 1), analysing data from 24 European countries using the
theoretical lens of service robot deployment model and organisational
ambidexterity to investigate the impacts of robots in the workplace on
firm productivity. Their distinctive contribution lies in analysing the
indirect impact of robots deployment on productivity by modifying
existing and creating new creative routines. Furthermore, the authors
argue the vital role of leaders in managing this transition of automation
and adoption of service robots by ensuring they maintain the balance
between exploratory and exploitative routines.
The second paper by Pan et al. (2021) explores AI use adoption in
employee recruitment practices. Employing the technology, organisation
and environment model and integrating it with transaction cost theory, the
authors analyse the enablers and barriers in adopting AI and its usage for
employee recruitment practices. The authors analysed data from 297 Chinese
firms and found that various technological, organisational and environ-
mental elements directly affect AI usage for recruitment in the surveyed
sample. The authors found positive moderation effects for the interaction
terms between transaction cost theory determinant of asset specificity in
examining the relationship between technology competence on AI usage,
indicating that the interaction was only significant for firms with high
levels of asset-specificity. Similarly, support was also found for the moder-
ation effects of uncertainty in examining the relationship between technical
competence and AI usage, such that the interaction was significant for
companies facing high uncertainty, thus partly supporting Proposition 3a.
The third paper by Malik et al. (2021) presents an in-depth qualitative
case study data of humongous global information technology consulting
MNC with its subsidiary in India, focusing on delivering innovative and
cutting-edge AI and disruptive technology solutions for several industries
worldwide. The authors analyse the adoption and diffusion of several
1090 P. BUDHWAR ET AL.
AI-enabled HRM applications by the global MNC and develop contex-
tually relevant AI applications for its subsidiary operation in India. The
case presents self-learning by different AI applications that deliver solu-
tions and respond to HR queries for an Indian context. Other AI Bots
addressed the diverse and specific needs of Indian employees for a range
of routine, non-routine and somewhat complex HR queries. These
HR-focused AI-applications’ ability to offer personalised, hyper-personalised
responses, suggestions and problem-solving helped employees to receive
individualised solutions. In addition, these bots collectively improved
the overall HR cost-effectiveness in terms of the sheer volume of routine
queries dealt with by these applications. Such an AI-mediated social
exchange helped improve the overall employee experience proposition,
leading to more significant commitment, satisfaction and a reduced
intention to quit, thus partly supporting Propositions 3a, b, 4b and 5.
The fourth paper by Jaiswal and colleagues (2021) focuses on the crucial
issue of upskilling employees to understand and utilise AI technologies,
especially in light of the increased adoption and proliferation of AI-enabled
applications and technologies at work. Employing the theoretical lens of
dynamic skill, neo-human capital, and AI job replacement theories, the
authors present qualitative data analysis of 20 experienced technical and
managerial professionals working in subsidiaries of Canadian, Danish,
French Irish, Indian, Swiss, the UK and US multinational corporations
(MNCs) operating in India. Findings from their analysis highlight five
critical core skills, including data analysis, digital, complex cognitive, deci-
sion making, and continuous learning, thus partly supporting Proposition 4a.
The fifth paper by Suseno et al. (2021) examines the change readiness
of HR managers for AI adoption. Specifically, the authors focused on HR
managers’ beliefs about AI and their AI anxiety and examined its relation-
ship with change readiness for AI adoption. Analysing data from 417 HR
managers working in China and employing social cognitive theory, the
authors found a significant negative relationship between HR managers’ AI
anxiety on change readiness for AI adoption, while a positive and significant
relationship between AI beliefs and change readiness. In addition, the
authors found the moderating role of high-performance work systems
(HPWS), such that HPWS attenuates the adverse effects of AI anxiety on
change readiness for AI adoption, thus partly supporting Proposition 4.
The final paper by Vrontis et al. (2021) presents a systematic review
of 45 articles on the literature examining the emergent themes around
intelligent automation in HRM and how it impacts firm performance
and employment conditions and areas for future research. Among several
themes, the authors found that the bulk of the intelligent automation
research is in the areas of recruitment, training and job performance.
Further, the emerging adoption has led to increasing job replacement
The International Journal of Human Resource Management 1091
thesis, human-bot interactions, and decision-making, including evidence
of HRM algorithms showing adaptive and self-learning. The above stud-
ies point to several benefits to the employees, work processes and organ-
isational effectiveness, leading to an overall more robust climate and
culture for innovation, change, as noted in a recent study on elevating
talent’s experience through AI-mediated social exchange in the presence
of a strong culture of innovation (Malik et al., 2021).
Concluding remarks
Through these contributions and supplementing this with our review of
the field and framing future research agenda based on a systematic lit-
erature review for the recent ten years, we expected to enhance the current
knowledge in this emerging field. First, we extend the knowledge base
on the drivers and consequences of the adoption of AI and AI-based
intelligent technologies in international HRM and inform the research
audience on the growing potentiality for further research. This research
area is relatively emerging yet timely needed to be further explored
through robust conceptual and empirical research keeping up with dynamic
changes of technological advancement and changing business environment.
Second, we reviewed the extant literature and derived the main focus
areas as four key themes—and the propositions that we have developed
for each theme can be explored further in future studies. Third, the the-
oretical framework we have developed from this review explicates the
association of constructs in detail and points to new constructs that can
be potentially sensible for further research to provide answers of concern
under the review’s focus. This review and the articles of this special issue
will contribute to the literature and lead business organisations and HR
professionals towards facilitating dynamic changes to introduce intelligent
technologies in gaining and securing competitive advantages.
Disclosure statement
No potential conflict of interest was reported by the authors.
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