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IMPACT OF ARTIFICIAL INTELLIGENCE (AI) ON HUMAN RESOURCES

MANAGEMENT (HRM): CHALLENGES AND OPPORTUNITIES

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ARTIFICIAL INTELLIGENCE IN
BUSINESS MANAGEMENT

Sruthi.S
Biswadip Basu Mallik
Subrata Das
Dr .I. Mohana Krishna
E. Fantin Irudaya Raj

India.
ARCHERS & ELEVATORS PUBLISHING HOUSE

No.54, MM Layout,

Hesaragatta Main Road,

Bangalore -560090

Mob: + 91 9164362263
E-mail: [email protected]
Website: www.aeph.in

Artificial Intelligence in Business Management

Archers and Elevators Publishing House

First Edition 2021

ISBN: 978-93-90996-50-6

Price: Rs.850/-
All rights reserved. This book or parts therefore, may not be reproduced in any form or
by any means, electronic or mechanical, including photocopying, recording or an
information storage and retrieved system now known or to be invented, without written
permission from copyright owners.

PRINTED IN INDIA
A & E printers, Bangalore-90.
 CONTENTS
S.NO TITLE OF THE PAPER PAGE
NO
1 ARTIFICIAL INTELLIGENCE AND EDUCATION 1
(CREATIVE CRITICAL THINKING CAPACITY AND
CREATIVITY)
Anchal Saxena, Ms Pushpalata Bagati

2 ARTIFICIAL INTELLIGENCE IN MARKETING 10

Biswadip Basu Mallik

3 ARTIFICIAL INTELLIGENCE AND ITS APPLICATION IN 16

FINANCE
Biswadip Basu Mallik

4 AUTOMATED DETECTION OF EMOTIONS FROM 20

TEXTUAL COMMENTS AND FEEDBACK
Dr D David Winster Praveenraj, Mr A Prasanth

5 A STUDY ON PROFITABILITY ANALYSIS OF HDFC LIFE 28

INSURANCE AND ICICI PRU LIFE INDUSRNCE
Dr.HimanshuMathur

6 INFLUENCE OF ARTIFICIAL INTELLIGENCE IN 33

POWERING HRM
Dr. A. Shameem

7 USE OF ARTIFICIAL INTELLIGENCE IN INNOVATIONS 41

BY ENTREPRENEURS
Dr. Chintamani Avinash Ramesh

8 A STUDY ON DISEASE AND HEALTH PROBLEMS OF 50

SMALL RUMINANTS IN TAMILNADU
Dr. R.L.Poonguzhal

9 COMPUTER VISION FOR ARTIFICIAL INTELLIGENCE 58

(AI) AND MIND
Dr.A.Velayudham , Pavithra M , Ashwini R

10 ROLE OF SMALL SCALE INDUSTRIES IN INDIA 72

Dr.R.L.Poonguzhali

11 DATA MINING APPROACHES AND ITS APPLICATIONS 81

IN CUSTOMER RELATIONSHIP MANAGEMENT
E. Fantin Irudaya Raj

12 SIGNIFICANT REVIEW, FRAMEWORK AND RESEARCH 96

AGENDA ON ARTIFICIAL MANAGEMENT AND
INNOVATION MANAGEMENT
Jayadatta S, Gangadhar Sheeri
13 IMPACT OF ARTIFICIAL INTELLIGENCE (AI) ON 107
HUMAN RESOURCES MANAGEMENT (HRM):
CHALLENGES AND OPPORTUNITIES
Mahanish Panda

14 ROLE OF AI IN SUPPLY CHAIN MANAGEMENT 114

Ramshankar Varma

15 AI IN LOGISTIC 123
Reetu Singh

16 ARTIFICIAL INTELLIGENCE IN BUSINESS 130

MANAGEMENT
Rekha Naidu

17 CHANGING ANALYTICS AND BUSINESS INTELLIGENCE 133

Sajna.M

18 SUSTAINABLE DEVELOPMENT AND INCLUSIVE USAGE 142

OF ARTIFICIAL INTELLIGENCE IN HIGHER
EDUCATION
Sindhu Poudyal

19 CHANGING ROLE OF QUALITY EDUCATION IN 148

PRESENT SCENARIO TO FULFILL THE NEEDS OF
SOCIETY ACCORDING TO GLOBAL TRENDS
Ms. Sunita Devi
 978-93-90996-50-6 Artificial Intelligence in Business Management

IMPACT OF ARTIFICIAL INTELLIGENCE (AI) ON HUMAN RESOURCES

MANAGEMENT (HRM): CHALLENGES AND OPPORTUNITIES
Mahanish Panda
MBA student, NIT HAMIRPUR
ABSTRACT
Technology has constantly been part of attaining enterprise outcomes, using
extra performance and optimization. AI is ready to alternate how people engage
with technology for the better. AI Techniques and its subset, Computational
Intelligence Techniques, are not new to Human Resource Management, and
considering that their introduction, a heterogeneous set of tips on a way to use AI
and Computational Intelligence in Human Resource Management has
accumulated. Across the globe, this idea has been followed extensively however
agencies in India were hesitant and gradual to evolve this technology and this
hesitation is ever so definitely visible within the Human Resources feature of the
business enterprise. But these days it could be visible that humans of India, in
addition to corporates, have become liberal in the direction of the usage of AI
techniques. So the large use of AI has significantly progressed production
efficiency and management efficiency. AI technology brings each possibility and
demanding situation to human aid control and the improvement of enterprises.
The purpose of our article is to offer an in-depth evaluation of present demanding
situations and possibilities in this field. The article incorporates demanding
situations like Human Involvement, Improvement in Skill Set, Accuracy &
Reliability, etc. Whereas the possibilities include expertise acquisition, fee
reduction, business enterprise planning, etc. The viable final result of this paper
is to offer an in-depth record of the more youthful era of humans.
Keywords- AI, Challenges & opportunities, HRM,
INTRODUCTION
Human Resources (HR) has developed regularly due to globalization and the huge
traits in information technology which has helped it pass over diverse boundaries
that had been confining it to be dealt with as an insignificant administrative
position in the corporation (Mellam, Rao &Mellam, 2015). Managing human
assets accommodates an extensive variety of various duties, such as staffing,
control of worker performance, improvement of worker qualifications and careers,
and repayment of worker efforts. The HR specialists nowadays are focusing to
optimize the aggregate of human and automated work to advantage a simple,
seamless, and intuitive work environment. It offers them time for creativity,
intelligence, and empathy to supply a more suitable candidate and worker
experience. Although HR appears to be sheathing in the back of the
implementation of AI-associated with different corporation enterprise functions,
along with carrier operations or advertising and sales, HR departments can
appreciably have an impact on the management of AI. Their impact on AI is
increasing to an extra quantity in human useful resource management (Dr.
Srinivas Bandi & Richa Verma 2020). Although AI and human assets might also
additionally sound like an oxymoron in the experience that humans sense its
reason is to update them, the reality is pretty different. AI alludes to the
technological innovation that permits machines to do duties that might usually
require human beings because of their intelligence (Ernst & Young, 2018).
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AI enhances human intelligence because it relieves personnel from indulging in

duties that may be automatic, forcing them to decorate their knowledge and
competencies in a way so as to create a greater cost to the corporation. AI in HR
within companies functioning in India additionally has now no longer visible an
identical quantity of boom and integration. In the HR domain, many specialists
are nonetheless skeptical about AI as they doubt its potential to provide first-
class consequences in regions that they accept as true which predominantly
require empathy and intuition (PWC, 2017). HR in lots of corporations in India
nonetheless believes that personnel can most effectively be handled correctly
through human intervention as many choices taken through HR in a corporation
aren't simply in simple terms pushed through data. Hence using AI in the area of
Human assets modified the form of the entire domain. In the approaching days,
we're going to see a drastic extrude because of the inflow of AI & ML in the area
of Human Resources Management. Hence it isn't always most effectively
important however additionally critical for the HR expert to have know-how
concerning AI.
OBJECTIVE
The intention of this manuscript is to recognize the prevailing research works on
the field of AI in Human Resources Management. We investigated the prevailing
published papers on the use of AI in the field of HR and tried the best to present
our views. We have also gone through the publications in different journals so as
to recognize the prospective progress of this area. We have tried to figure out the
challenges & opportunities of using AI in the field of HR.
METHODOLOGY
Our paper will present an orderly assessment of available literature on the use of
AI in the field of HR. Hart, 1998 had said in his paper that in the field of
management, reviews of existing studies are extensively critiqued due to the
practice of prejudice and favoritism, while choosing the papers.
The benchmarks, we have followed to categorize the existing studies for review
processes are:-
The paper should be published in a peer reviewed journal. We have also
considered the data from textbooks, websites, detailed reports and various
publications from diverse organizations/government, dissertation reports of
different degree students, papers which are under process and publications in
national/international conferences.
The papers which we have taken into consideration are from different
countries and those articles have already been published in well recognized
journals.
ADVANTAGES OF AI
AI technologies, deep learning and artificial neural networks are rapidly evolving;
especially methods that use huge quantities of records a whole lot quicker and
make predictions extra appropriately than humanly possible. While a
tremendous extent of records is being created on a daily basis. It is the programs
that use device studying which can take that record and quickly flip it into
actionable information. It is high priced to process the huge quantities of records
that programming requires of AI.
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Technological trends have been extensively advanced since the1990s with extra
vast development have advanced for the better. Especially,
the combination of the AI era has a high-quality connectedness in enhancing the
sports of their ordinary life. Some different benefits of AI are Error
reduction, hard exploration, Daily application, Digital assistants, No breaks,
Increase painting efficiency, lessen the fee of schooling and operation. AI is
blanketed in a whole lot of extraordinary varieties of an era. There are a few
examples given below (M.K.GANESHAN & C.VETHIRAJAN 2020).
Automation. This makes a framework or procedure work naturally. For
instance, Robotic Process Automation (RPA) may be custom designed to carry out
high-volume, repeatable undertakings that human beings normally perform. It is
incredible from data innovation computerization in that it may modify the
evolving conditions.
Machine learning. This is the method for records research that computerized
expository version shape and more over research getting a PC to be have without
programming. Profound mastering is a section of AI that, in simple terms, may be
a notion because of the mechanization of orderly research. There are three sorts
of AI calculations:

Supervised learning: Data sets are named so

examples can be distinguished and used to mark
1. new informational indexes.

Unsupervised learning: Data sets are not named

2. and are arranged by likenesses or contrasts.

Reinforcement learning: Data sets are not named

at the same time, subsequent to playing out an
3. activity or a few activities; the AI framework is
given input.

Machine vision: This is the study of allowing PCs to see. This innovation
catches and breaks down visible statistics using a camera, easy to automated
change, and advanced signal preparation. It is often contrasted with human
vision; however, device illustration isn't always certain via means of science and
maybe custom-designed to see-through dividers, for instance.
It is applied in the scope of utilizations from signature recognizable evidence to
medical image investigation. PC vision, that is the attention of device-primarily
based totally image education, is often conflated with device vision.
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Natural language process: This is the education of humans - and now no

longer a PC - language via the means of a PC program. One of the extra mounted
and maximum famous times of NLP is junk mail location, which takes a gander
at the title and the content material of an electronic mail and chooses if it is
garbage. Current approaches to address NLP depend upon AI. NLP errands
include content material interpretation, opinion examination, and discourse
acknowledgment.
Robotics: This subject of constructing facilities at the shape and assembling
of robots. Robots are often used to carry out undertakings that can be tough for
human beings to carry out or carry out reliably. They are applied in sequential
production structures for automobile advent or via the means of NASA to
transport big objects in space. Analysts are moreover using AI to assemble robots
that may talk in social settings.
Self-driving autos. This usage is a mix of PC vision, image acknowledgment,
and profound identifying a way to assemble automated capacity at guiding an
automobile whilst ultimate in a given course and retaining far from sudden
hindrances, for example, human beings on foot.
AI as service - It is the mix of equipment, programming and staffing prices.
It thoroughly can be costly, several dealers are remembering AI segments for his
or her trendy contributions or giving admission to man-made brain power as
service (AlaaS) stages. AIaaS lets in human beings and companies to attempt
various things with AI for distinct commercial enterprise functions and check
diverse degrees earlier than creating a dedication.
Opportunity of AI in the field of HRM-
As a disruptive technology with a huge influence, the uncertainty of AI's
improvement has introduced a scientific and multi-stage profound effect on the
human useful resource control of enterprises. Its advantageous effect on human
resource management specially consists of the subsequent factors:
Cost Reduction- In general, employee schooling is regularly steeply-priced
and calls for a massive quantity of training funding, at the same time as the
software of AI can appreciably lessen schooling costs. On the other hand, AI can
update repetitive mechanical work and decrease using the hard workforce, as a
consequence in a roundabout way lowering the value of personnel schooling. On
the other hand, AI can at once lessen schooling costs. At the same time, the
schooling of AI to personnel is non-stop and may be changed in keeping with the
conduct of personnel and the wishes of enterprises, so one can mobilize the
passion of personnel for studying. In phrases of schooling generation, AI makes
use of digital generation to enhance stimulation and security, which is conducive
to enhancing learning performance and lowering training time value (N.Ashwini
& Aparna Patil 2018).
Improvement in efficiency- Firstly, conventional recruitment has
restrained channels, which makes the desired employees not able to get to the
process immediately. Therefore, the recruitment time is longer, and the problem
of the resume screening will increase with the boom of the range of resumes
received, and restrained human assets are hard in screening out the excellent
process-matching in a brief duration of time.

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On the opposite hand, while a few positions want to recruit a massive range of
personnel, it's far hard to perform the interview paintings at the identical time,
the recruitment value is large, and the human useful resource manager's
personal elements will cause the shortage of cap potential in the recruitment of
center and high-stage positions. Considering the constraints and shortcomings of
conventional recruitment, AI-primarily based totally on large facts and cloud
computing can deliver complete play to its advantages. AI can cowl a massive
range of expertise information. In the screening of resumes, AI can depend upon
its calculation feature to pick resumes that meet the wishes of the unit from a
massive range of process resumes, or to suit the hints primarily based totally on
process requirements. It can nicely remedy the hassle of mismatch among the
wishes of corporation capabilities and the delivery of capabilities in the market.
At the same time, AI isn't restrained through time and place. It can conduct
established interviews for exceptional applicants at the identical time, or behavior
voice interviews via voice robots, which significantly lessen the weight of HR.
Talent Acquisition- Using AI, the HR managers can cast off plenty of
annoying and monotonous paintings usually completed through HR managers
within the shape of an expertise acquisition software program that can scan,
read, and examine candidates and quickly get rid of 50% of them from the
recruiting procedure. This serves as a large gain because it lets the recruiter
spend greater time reading and comparing simplest a smaller organization of
eligible applicants. In such circumstances, HR gadgets are significantly growing
the first-rate hiring decisions. Additionally, companies also can keep plenty of
cash in this manner due to the fact need to pay the value of terrible
hiring decisions.
In Organizational Adaptation- Once the worker is taken on board; the HR
managers want to investigate diverse different factors of the worker. Adaptation
is the second step in the procedure as many potentialities can't be healthy in the
new surroundings because of a loss of on boarding methods. Namely, new
personnel call for plenty of interest and it's far regularly not possible to commit
sufficient time to everyone in all in which AI steps in it
determines custom-designed on boarding methods for each unmarried position.
This proved to be extraordinarily efficient in exercise due to the fact that new
people who went via nicely deliberate on boarding packages had a lot better
retention costs than their friends identical opportunity (Coral
Barboza 2019).
Succession Planning- Through AI, the HR managers can expect the destiny
turnover costs, reduced (or increased) worker engagement levels, worries
approximately inner worker communications, task final touch problems, and
every other sudden hidden problem that might normally take years to surface. AI
will at maximum possibly be capable of expectation in close to accuracy
concerning worker turnover and mights how to achieve success in relation to
value financial savings and standard organizational performance.
Challenges in HR industry
The tasks before HR are of humongous proportions. If the organization is
transitioning to the new technology, the industry has to aid and assist the
workers in managing this discontinuous change and train for new jobs because a
totally different set of skills will be in demand.
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Too Dependent On Certain Keywords

AI is currently too dependent on certain keywords. When it scans the piles of
applications, it looks for words and phrases that help select the best candidates
for the position. However, those who are familiar with how AI works can easily
outsmart and trick it by using these very keywords in their applications and
making themselves look fit for the roles that they actually aren't fit for.
Less Human Involvement
Just as this point is a pro, it is also a con for AI. Sometimes, looking at an
application is not enough to determine whether or not someone is fit for the role.
The company may be pursuing certain goals when looking for the right candidate
and a machine will not always be able to follow them.
Think of it this way: you need to translate a document and you can either do it
with an automatic translator or by hiring a professional. A program will
misinterpret many phrases while an expert from an online translation service
such as the word point will know what was meant by certain word choices in the
text.
Reduced Accuracy and Reliability
AI is still being developed and it is far from being perfect. Not everything that AI
technologies give you is entirely accurate and AI is not something you can rely on
entirely. You can also program the tool you are using incorrectly or not take into
account all the factors which will result in misinterpretation of candidate
applications and talent will be lost.

Requires an Improved Skill set

According to the 2018 Global Human Capital Trends Report only 31% of
respondents are ready to address AI. Implementing such technologies into your
HR department requires your professionals to improve their skill set and not
everyone is ready to do that. Upgrade your staff's skills will cost time and money
and obviously not every company is willing to do this.

Not Always Possible To Implement It

Just like the members of HR departments are not ready to improve their skills,
companies feel that they are not capable of implementing AI into their workflow
just yet. Any kind of major change requires a lot of attention and resources that
some companies simply do not possess.
What this means for AI technologies is that they are not likely to be adopted
massively anytime soon. Decades may pass until all the big and small businesses
decide to switch to AI for their recruitment processes or even start using it in
other aspects of their workplace. Change doesn't happen instantly, after all.
CONCLUSION
As much as the HR technology landscape continues to be disrupted by AI. HR
teams need to balance these cognitive tech advancements with transparency. HR
leaders and practitioners need to have a clear understanding of how decisions
are being made to mitigate unknowingly injecting bias into their programs. This
transparency will be essential in making sure that employees trust the new
technology.

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