Chapter 7: Challenges of Adopting Artificial Technology in Human Resource Management Practices

Introduction: AI technologies are transforming the industrial sectors, and the impact of AI technologies does not leave behind human resource management (HRM). From recruitment to development and payroll, AI has its own impact. In recruitment, selection, training and development, compensation, and remuneration AI play an important role.

Purpose: The main purpose of this chapter is to analyse the challenges in adopting AI in HRM. This chapter investigates the various strategies to overcome challenges encountered by companies while adopting AI in HR practices. Moreover, this chapter also examines the role of AI in HR practices.

Methodology: To achieve the purpose of this chapter, various case studies were analysed and literature studies with emphasis on what types of challenges are face in adopting AI in HR practices. The authors of various newspaper articles, books, published journals, and websites on AI analyse the various newspaper articles, books, published journals, and websites on AI in human resources (HR). Electronic databases are used as the most effective technique to begin a literature search for the current overview, specifically Science Direct, Google Scholar, and Emerald. In addition to this, the application of AI in HRM practices used by leading organisations globally is also reviewed. The analysis used four keywords: HRM, AI, challenges and adopting. This research has been conducted by searching scholarly papers and relevant studies using similar keywords.

Findings: The adoption of AI technologies is continuously increasing in HR practices. AI performs various HR functions such as recruitment, selection, training and development practices, scanning resume, etc. Organisations can be benefitted in many ways by adopting AI in HRM practices, such as better employees engagement and relations, accelerating competitive advantages and effectively utilising HR budgeting. The findings show that many companies like IBM, Deloitte, Amazon, etc., adopt AI in their HR practices.