Proceeding International Conference on Economic Business

Management, and Accounting (ICOEMA)-2023

Program Studi Doktor Ilmu Ekonomi
Universitas 17 Agustus 1945 Surabaya-2023

Artificial Intelligence in Human Resources Management

Johan Paing
Faculty of Economic and Business, Universitas 17 Agustus 1945 Surabaya,
Indonesia

Received: June, 2023; Accepted: June, 2023; Published: August, 2023

Abstract

Artificial Intelligence (AI) began to emerge in the mid-20th century. However,

there has been a lack of consistency in views regarding AI within the scope of
Human Resource Management (HRM). Initially, AI and HRM were two
separate streams of research. Currently, AI and HRM have been analyzed
together to gather knowledge and identify common patterns of interaction
between the two. The research method employed in this study is a systematic
literature review of 65 scientific articles published in international journals,
with primary sources from Scopus Elsevier, Web of Science (WOB), and
Google Scholar. This paper outlines the analysis of how HRM influenced by
AI and describe a concept of AI within HRM. Furthermore, many application
of AI within HRM are also analyzed. Subsequently, the development of AI-
based robotics technology and its impacts are discussed. Finally, a literature
review framework for future research will be presented.

Keywords: AI, HRM, robotika.

INTRODUCTION
The article on Artificial Intelligence (AI) and Human Resource
Management (HRM) was initially published by Lawler & Elliot (1996), presenting
the findings of an experimental study on an expert system. Initially, AI and HRM
were two distinct research streams. Currently, four disciplines, namely Information
Management (IM), HRM, General Management (GM), and International Business
(IB), have begun to merge. Despite being initiated 27 years ago, there is still a lack
of consensus regarding the integration of AI into HRM, as noted by Tufahha &
Perello-Marin (2021).
The lack of consensus regarding the definition of AI in HRM can be found
in the publication by Wang (2018), who states that AI in HRM refers to machines
that can mimic human thinking, reasoning, and learning abilities. On the other hand,
Bharwadj, Singh & Kumar (2020) explain AI as the interaction between humans
and computers that helps improve organizational functional procedures.
In the era of HRM, AI has truly transformed and redefined work processes
and governance within organizations (Derous & Fruiyt, 2016; Black & Feroli,
2019). Administratively, HRM has been disrupted and advanced due to the
influence of AI, automation, and robotics (Wang & Lin, 2018; Matsa & Gullamajji,
2019). AI appears significantly different from its predecessor technologies. AI have

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Management, and Accounting (ICOEMA)-2023
Program Studi Doktor Ilmu Ekonomi
Universitas 17 Agustus 1945 Surabaya-2023

a great potential to change the scope of work, society management and HRM
(Baylei & Jelai, 2019). The digital HRM era holds great promise when the direction
of development focuses on maximazing the colaboration between automation and
manual work (Brewster & Chung, 2016). This will be a great opportunities for top
management to build AI application that is more personalized, humanistic, and
intuitive (Meister, 2019). On the other hand, there has been a significant increase
of application of AI within HRM, but without strategy of adoption (Abdeldayem &
Aldulaimi, 2020). Hence, re-exploring the concept of AI in HRM that has not been
agreed upon is of utmost importance. Similarly, the exploration of recent AI
applications developments, along with strategies of adoption, must not be
neglected.
This systematic literature review in this paper will explore the concepts,
applications, adoption strategies, and advancements in robotics technology within
HRM, along with the accompanying impacts.

METHOD
In this paper, the author utilizes the recommendations of Thomé&Scavarda
(2016) and Fisch&Blok (2018), to conduct a systematic literature review, which
highlights the most relevant issues to consider: (1) focusing on the research topic
and questions; (2) finding and identifying relevant article; (3) reaching a proper
balance between depth and breadth when selecting criteria for pertinent
descriptions; (4) making work breakdown structure from totally activity to several
little parts; (5) describing conclusions and summary.
Poin 1 (one) has described in introduction. The objectives of the research are
presented and questions have been stated. In selecting articles, the review conducted
by Hewet et al. (2018) was utilized. First, the main databases were selected. In this
paper, three primary database sources were chosen: Scopus Elsevier, Web of
Science (WOS), and Google Scholar. To obtain a comprehensive and in-depth
understanding of the topic while ensuring relevance and up-to-date information, a
publication time limit was set after the year 2017.
To find relevant articles, a suitable keyword formula was developed. Operators
of Boolean (“AND” & “OR”) used to creat simple combination of search algorithm
(Pisani,2017). Spesific keywords were choosen for identification purposes, that is
to identify qualifying publication (Balaid,Rozan,Memon&Hikmi,2016). Örtenblad
(2010) combining keywords (AI and HRM) to increase flexibility to get relevant
publication.
The initial sample of potentially relevant studies for this research consisted of
11,000 articles. After applying the publication year limitation to articles published
after 2017, a total of 174 articles remained. The review of titles further narrowed
down the selection to 81 articles. Finally, after reviewing the abstracts, 65 articles
were chosen for the systematic literature review. However, due to page limitations,
only 30 articles were included in the reference list.
All the articles that relevant with this research were downloaded. Then,
carefully screened to extract relevant information (Andresen & Bergdolt, 2017).
This step to minimize technical error and for the sake of replication

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Management, and Accounting (ICOEMA)-2023
Program Studi Doktor Ilmu Ekonomi
Universitas 17 Agustus 1945 Surabaya-2023

(Tranfield,2003). The aim of this systematic review is mapping and classification

those were conducted into several categories, namely the definitions, effects of AI
in HRM and directions for next research.

RESULTS AND DISCUSSION

AI Concept in HRM
AI has a great potential in HRM. But, this prospect has not been yet
understanding by practitioner and academic. This situation become main reasons
why there is no same conception about AI in HRM (Kaplan & Haenlein,2019; Arco,
Presti, Resciniti&Marino,2019;). Furthermore, Researchers using different
approaches to analyse AI. Some refer to studies that define AI from general
perspective, focusing on technical aspects. Different researchers concentrate on the
high level of conception. One definition states that AI is a powerfull system, which
able to interpret data accurately, learning and utilizing to finish tasks and get the
target with high level flexibility(Kaplan & Haenlein, 2019). Another definition
describes AI as a knowledge and technique with fully intelligent behavior,
mimicking process of thinking, and reaction (Gherghina,2015). Furthermore, AI
viewed as an engineering to process information that imitates human capability
(Popkova & Sergi, 2020).
There are two support system for AI, that are Deep & Machine Learning
(DL & ML) (Lee & Shin, 2020). The DL & ML functions will be the core of
transformation that driven by the latest advancements of AI. New methodologies
and transformation in management of data indicate fresh approach to defining and
understanding AI (García-Arroyo & Segovia, 2019).
Based on the analysis of existing literature, the definition of AI in HRM is
a technology comprising DL & ML that is capable of mimicking human capabilities
This definition can be upheld in the current situation by examining the path in which
AI is integrated into decision-making processes in HRM.
AI Aplication in HRM
One of the challenges impacting AI in HRM is the sheer number of
applications. Researchers argue that AI technology brings about several radical
changes in HRM practices that affect business operations (Nawaz, 2019; Ojha &
Chitranshi, 2017). AI is already shaping workforce patterns and the way companies
handle employee recruitment, performance management, and employee
development (Michailidis, 2018). AI is completely transforming HRM practices by
providing easier recruitment methods and innovative solutions to a multitude of
problems (Bafna, Pramod & Shirwaikar,2019; Chakraborty, Biswas, Aich & Giri,
2020).
Chung&Chen (2019) explain text mining’s function to analyze main
capability of professional by processing data from institution and advertisements.
Shanmugam&Garg (2015) states that AI as a tool to minimize assessment
deviation. Furthermore, AI can support management and employees to understand
every employee’s performance progress. Padmashini, Parameswaran&Manjusha
(2018) underline the use of vision-based concept to utilize deep learning in
managing human resources.

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Management, and Accounting (ICOEMA)-2023
Program Studi Doktor Ilmu Ekonomi
Universitas 17 Agustus 1945 Surabaya-2023

Strohmeier&Piazza (2015) assumpting there are six scenario to classify AI

applications in HRM: 1) using search engine with knowledge-based; 2) extract
information to resume data; 3) using voice to response and support interactive
systems; 4) using text mining to analysis sentiment of HRM; 5) using generic
algorithm to rotate position of staff; and 6) using artificial neural networks to predict
turnover of employee. poin 1 until 4 are directly focus on recruitment and
development, while the rest focus on employee’s performance.
In terms of candidate search, it can be noted that search engines with
knowledge-based are the main support system of AI (Chakraborty, Biswas, Aich &
Giri,2020; Lochner & Preuß, 2018). This process also involves the digitization of
assessment methods and recruitment (e-recruitment). Geetha and Bhanu Sree
Reddy (2018) state five key aspect to summarized the benefits of AI in recruitment
phase: 1) AI reduce time by minimizing records to avoid repetitive incidents; 2) AI
helps HRM to hire the best candidate needed by institution (Daramola,
Musa&Oladipupo,2010); 3) reducing costs are from minimize recruitment agency
fees and hire the best talent (Kundhavai,Ahamed&Sumathi,2020); 4) Applications
of AI rely on analysing of Big Data that starting from good screening, during the
process of recruitment (Wang,Zhang&Liang,2018); 5) trust and loyalty between
organization and candidates are enhanced through interactive communication
among them.
Rab-Kettler&Lehnervp (2019) in resume acquisition, exploring the role of
AI by describing the ML’s function, that are capable of: a) designing descriptions
for any job positions; b) filtering resumes by choosing keywords and hiring new
employee in the appropriate job openings; c) automated welcoming activities (pre-
onboarding); d) interviewing candidates with chatbots potentially replace human
interviewers (Kundhavai,Ahamed&Sumathi,2020).
Chatbots are part of AI technology. It can simulates dialogue of human. Not
only answer employees' questions. Chatbots also serve as facilitators, career
coaches and employee personal support (Kamal,Bae,Lim&Sutrisnowati,2018).
Chatbots also help in planning of career. They can guide officer in interpreting
results of many test, track path of career based on job experience, and comparing
alternative job position. Practitioner very appreciate the convenience. Even though,
personalized respon is not given by a human. It increase demand the availability of
chatbots.
Interactive voice response in the form of a virtual assistant is a part of AI
applications that can answer user queries and engage in extended conversations
with them (Pradana, Nyanyikan, & Kumar, 2017), enhancing e-communication
effectiveness and interaction between them (Biswal, Ganesh, & Madhavan, 2020).
With this application, interaction between computers and human through voice,
can be served as a channel. Implementation of this channel is Employee Self-
Service (ESS) systems. ESS system very applicable in the area of HRM (Strohmeier
& Piazza,2015).
Sentiment analysis in HRM (opinion mining), aims to analyze attitude,
opinions and sentiments of employees in various aspect such as organizational
product and services (Khan, Qamar&Bashir, 2016). Identification differences in

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opinions about entity (event, decision, service and product) enables stabilization,
withdrawal, improvement and revision of the entity to maintain recipient
satisfaction (Murali&Lava,2019). Sentiments’ description of stakeholder,
applicants, manager and employees about HRM practices such as leadership style,
management, training quality, prospect of career and compensation ratios can give
meaningful insights into SWOT analysis of human resources division (Patel & Jha,
2015). Nowadays, sentiment and opinions about employee and workplace are
increasingly expressed and easily can be found in web-based documents and social
media networks (Strohmeier&Piazza,2015).
Van Esch, Harder, Franklin & Stewart Black (2020) combined genetic
algorithms and biometrics with AI technology. This combination to analyse data
that generated from voice & facial recognition and fingerprints (Kamal,
Bae,Lim&Sutrisnowati,2018; Dong,Zheng,Chen&Wei,2020;), as well as system
that capable to create biometric profile. Suen,Lin&Hung (2020) implemented
decision making system based on AI with biometrics, enabling the development of
automated interview platforms.
The next AI application is Artificial Neural Networks (ANN). This is based
on knowledge categories and provide task solving, clustering, classification and
prediction (Biswal,Madhavan&Ganesh, 2020). ANN helps officer predicting
employee turnover and uncover unknown factors (Strohmeier&Piazza, 2015). This
feature will be leveraged by officer to determine rates of turnover. To improve
satisfaction through identifying these factors will provide a competitive advantage.
ANN also generate several list of complaints and provide appropriate solutions
(Dickson&Nusair,2010).
AI Adoption Strategy in HRM
In the context of adoption strategy, there is very big uncertainty regarding
solution to be take(Strohmeier&Piazza,2015). Several practitioner have identified
factor-factor for implementing AI successfully. Successful in implementation
should include commitment of management (Kim,2019), corporate strategy,
infrastructure system, organizational, human resource aspects and end-user support.
Huang&Rusty (2018) states AI theory job substitution based on 4 (four)
intelligences aspect : emphatic, intuitive, mechanical and analytical. From all article
that have been analyzed, only two articles giving recommendations about strategy
of adopting AI.
Clear strategies for adopting, primarily focused in recruitment phase. Van
Esch&Black(2020) identified several suggestion for implementing recruitment
tools: 1) focus on specific job positions. Managers will identify best talent candidate
and use supported feature to make limitation; 2) Beware of bias. If there has been
unintentional bias in the last period, it is worth to neutralize it promptly, then let the
system fixed it; 3) Integrated grand design. Institutions offer better solutions, when
recruitment process focus on comprehensive solutions that still inefficient and
ineffective; 4) Be transparent and open. AI-supported recruitment systems have
fewer biases and have more option to choose. Hiring and adopting AI in recruitment
will increase company branding seen as advance in technology; 5) last impression

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back to human. For final interview, it is necessary to conduct by human. This

strategy to show the candidates real company culture and working atmosphere.
Van Esch, More, Franklin and Black Stuart (2020) describing how
management can designing, implementing and marketing AI applications in
recruitment program, namely 1) always avoid negative aspects of technology that
unsupports; 2) taking into account the digital ecosystem, social and physical
domains that represent the candidate's potential experience in the context of service
delivery; 3) trend as a critical limitation situation in recruiting process; 4) focusing
the relationships linking trends, that is social media usage and biometrics.
Robotics in HRM
Robotics is a multidisciplinary field. It consist of electronics,
nanotechnology, AI, ML and many others. Robotics is a machines man-made. It
can perform like human, even imitate behavior and movements. Discussions
focusing on advancements in robotic technology highlight the implications of
robots for jobs and the workforce. High optimism about the opportunities for
training and learning, arise from the presence of robotics in HRM.
Scope of work on robotics technology classified into collaboration robot-
human, learning opportunities and job replacement. Studies on robotics technology
predict that several jobs will be lost and replaced by robotics and automation. Skill-
based jobs are most likely to experience the greatest impact
(Chao&Kozlowski,1986). Humanoid robots, such as restaurant-serving robots and
virtual assistant robots, will replace human frontline officer (Van Doorn,2017). But,
Van Doorn (2017) also still state, this conditions characterized by a need for
empathy, the requirement for creative and original solutions, or requirement of
high-level social intelligence. These conditions are at low risk of being replaced by
robotics.
There are a need to combine robotics technology with human capabilities
to develop human-centric solutions. In this condition, educated and skilled officer
are required for this symbiosis. Collaboration between robots and humans harness
existing opportunities and mitigate potential threats (Aleksander, 2017). Jonson
(2018) underlining that human knowledge still remain a vital component, although
robotics can enhance precision and reduce human error.
Literatur Review Framework
Based on the thematic analysis that has been described, the following
framework is made:

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Management, and Accounting (ICOEMA)-2023
Program Studi Doktor Ilmu Ekonomi
Universitas 17 Agustus 1945 Surabaya-2023

Figure 1. Literatur Review Framework

Grand Theory and Theoritic Implication

The grand theory underlying the analysis of HRM in this paper is
management. Meanwhile, the middle-range theory is HRM. The grand theory
underlying AI is expert systems, with the middle-range theory being artificial
intelligence. One of its application domains is robotics. The difference in these
grand theories underscores the statement that initially AI and HRM were two
separate research streams.
Observing the HRM functions as middle-range theory and AI as a
subdivision of expert systems, it is evident that AI has deeply penetrated the HRM
functions. Out of the 11 HRM functions, namely 1) planning; 2) organizing; 3)
directing; 4) controlling; 5) staffing; 6) development; 7) compensation; 8)
integration; 9) maintenance; 10) discipline; and 11) termination, only the
development function (point 6) has not been found to be discussed in the articles.
At the applied level, AI has started to venture into the realm of customer
service, with robotics playing a significant role. Supported by the rapid
development of information technology and the availability of seemingly unlimited
data, the potential for robotics to perform HRM functions is no longer a mere dream
or impossibility.
There are several theoretical implications that need to be underlined,
namely 1) decision-making theory. AI algorithms and expert systems have
facilitated better decision-making processes. Thereby increasing the accuracy of
decision making by less competent HR managers and eliminating decision-making
time. 2) AI and advanced technology is a multifaceted theme that closely related to
various disciplines. Therefore, it is advisable to study it by adopting a
multidisciplinary approach. 3) involves moral and ethical theory. Several
researchers have analyzed ethical aspect in decision-making process and the factors
influence how employees accept AI technology. 4) involves risk management
theory. The development of AI in HRM requires a complex process and must
concider all the challenges and risk that may occur.
Grand theory tabulation and its implications can be seen below.

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Tabel 1. Grand Theory

Expert
Grand Teori Management Moral
System
Middle
AI HRM Risk Ethics
Range
Business
Applied Robotics
ethics

CONCLUSION
There are 2 (two) reasons for the absence of standardized definition of AI
in HRM, namely inadequate understanding of potential AI in HRM. There are still
several different approaches among researchers.
So many AI applications HRM has brought about radical changes in HRM
practices. AI has established a new management pattern in HRM, from start to
finish.
AI adoption strategy in HRM still faces high uncertainty. This is because
managers are still waiting for the results of research on the determinants of
successful AI implementation. Within the scope of development, no papers clearly
state with considerations about strategy of adoption for AI in HRM.
The presence of robotics in HRM has made many positive contributions.
On the other hand, it also creates new anxiety and uncertainty about the future of
HRM. It takes a creative mindset to turn robotics threats into opportunities.

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