Will AI Replace 'Human' In Human Resource Management?

Artificial intelligence (AI) is fast spreading arms to disrupt the existing business models. It isn’t only changing the work place but the way work is done as well. Human resource management is the new area which is fast switching to this technology for proper assessment of employees.

According to the Deloitte report titled ‘Global Human Capital Trends’ 2016, 74 per cent of executives identified digital HR as a top priority, 42 per cent of companies are adapting their existing HR systems for mobile, device delivered, just-in-time learning; 59 percent are developing mobile apps that integrate back office systems for ease of use by employees; and 51 percent are leveraging external social networks in their own internal apps for recruitment and employee profile management.

Babu Vittal, Head HR at Shopclues told BW Businessworld, “If we look at HR trends closely, 60 per cent time goes in organising and managing things. It leaves very less time for strategizing. AI is proving to be a big help in this regard. The way we work need to change and AI is making that change possible. It facilitates communication, processing and background work. It helps us get the digital footprint of every employee which we use for verification of that individual.”

Today, companies such as SAP and Reliance Jio monitor real-time metrics on engagement, recruiting, turnover, and other measures to help business leaders make decisions more quickly. IBM has begun to use AI tools to give leaders regular pulses on the performance of their teams, helping them see patterns that can get in the way of performance or retention and prompt them to proactively address them through coaching, recognition, or community building.

Another example in this regard would be software vendor Unitive, which uses AI to write job descriptions and can identify gender, race, or generational bias through algorithms to minimise unconscious bias in the recruitment process. AI, an ability of computers to accomplish responsibilities that normally demands human intelligence.

If the trend continues to go stronger (which is likely), then the HR department team will keep on getting smaller. “The penetration of AI is rapidly increasing. Earlier limited to only big firms, now the technology is also being leveraged by MSMEs. This technology might engulf a few jobs in HR, the HR team might reduce in number but this technology won’t replace the ‘human’ in human resource management,” added Babu.

The new technology can lead to job losses in big firms but at the same time, can also prove beneficial for smaller firms by reducing their expenditure on wages.