Name : Jihan Ranjani Saputri
Student Id : 2110523010
Course : Research Methodology
Lectures : Harif Amali Rivai, Dr, SE, M.Si, / Yulia Hendri Yeni, Dr., SE, MT. Akt
Unlocking the Future of Talent Acquisition: Analyzing the Impact of Artificial Intelligence
Technology on Recruitment and Selection in the 4.0 Era
Chapter 1
Introduction
1. Background
Artificial Intelligence (AI) is a transformative field of technology that aims to create
machines and systems capable of performing tasks that typically require human intelligence,
such as problem-solving, learning, and decision-making. It has a profound impact on various
aspects of our lives, from virtual assistants like Siri on Apple Product. AI does not
necessarily replace humans, but rather serves as a complement in performing difficult,
repetitive, and time-consuming tasks and augments human capabilities by enhancing
cognitive strengths, embodying human capabilities, and expanding physical capabilities
(Mikalef & Gupta, 2021; Wilson & Daugherty, 2018). The idea that Artificial Intelligence
(AI) is not intended to replace or eliminate the need for humans in the workforce, but
instead, it functions as a tool to assist and work alongside them. This collaborative approach
between AI and humans aims to improve overall productivity, efficiency, and effectiveness
in a wide range of industries, rather than replacing human workers entirely. AI's
applications in HRM are extensive and beneficial, covering functions like recruitment,
selection, training, and more.
Artificial intelligence (AI) has been widely adopted by recruitment agencies in various
industries and has become one of the latest trends in the recruitment sector (Alam et al.,
2020; Upadhyay & Khandelwal, 2018; Nugent & Scott-Parker, 2021). This technology is
being employed to streamline and improve various aspects of the recruitment process, such
as candidate sourcing, screening, and matching, reflecting its transformative impact on how
organizations identify and hire talent. AI assistants allow recruiters to focus on what they are
best doing at, while AI assistant focuses on candidate capture, screening, scheduling
coordination, and communication and engagement (Paradox, 2018). The ability to efficiently
extract relevant information from vast databases, which is a defining characteristic of AI, is
invaluable in the hiring process. In this context, AI not only increases the speed of decision-
making, but also significantly reduces the time burden and costs associated with recruitment,
thus making it an indispensable tool for hiring managers.
Source : Aptitude Research
On the other hand, recruiters no longer seem afraid of losing their jobs to artificial
intelligence (AI). The survey states that 42% of recruiters believe that AI will allow them to
be more strategic in their work. 45% of implementing strategies, tools, and practices to
alleviate the workload associated with routine administrative tasks and processes. This can
lead to increased efficiency, productivity, and the ability to focus on more value-added
activities. And 37% streamlining or automating certain tasks or positions to make the process
more efficient and cost-effective.
AI has an impact on improving the performance of recruitment and selection processes based
on the above information. However, from the perfection of AI, there are shortcomings using
AI in recruitment and selection raises concerns about potential biases and ethical issues
thereby triggering trust issues (Prakash, Joshi, Nim, & Das, 2023; Troshani, Hill, Sherman, &
Arthur, 2020). While AI can bring efficiency and objectivity to recruitment and selection, the
potential biases, ethical considerations, and lack of transparency can lead to trust issues. It's
important for organizations to proactively address these concerns to ensure the responsible
and fair use of AI in recruitment, rebuilding trust and confidence in these systems. AI
algorithms may be trained on biased data, perpetuating existing biases in the hiring process
(Dastin, 2018). Recognizing and addressing these biases is essential to ensuring a fair and
equitable hiring process and minimizing potential harm to candidates and organizations.
Based on the above explanation Artificial Intelligence (AI) is a technology that has a
significant impact in Human Resource Management (HRM). AI aims to improve and extend
human capabilities, especially in difficult and repetitive tasks. In the field of HRM, AI has
been used extensively in the recruitment and selection process. AI can simplify tasks such as
candidate search and selection, making the process more efficient and cheaper. AI also allows
recruiters to focus on the strategic aspects of their jobs. Nonetheless, the adoption of AI in
HRM also has its challenges. There are concerns about bias and ethical issues in AI
algorithms used to evaluate candidates. AI systems can exacerbate existing biases and can
lead to trust and discrimination issues. Therefore, it is important for organisations to deal
with these challenges sensibly to ensure responsible and fair use of AI in recruitment. Thus,
judicious use of AI can maximise the potential of AI in HRM while minimising its
drawbacks.
1. Research Problem :
1) What is the impact of using Artificial Intelligence (AI) in Human Resource Management
(HRM), especially in the candidate recruitment and selection process?
2) What are the main challenges that arise in the adoption of AI in HRM, including issues of
bias and ethical issues in AI algorithms used to assess candidates?
3) How can AI in HRM help in creating a more inclusive and diverse recruitment process?
2. Research Purpose :
The purpose of this research is to investigate the impact of Artificial Intelligence (AI) on
Human Resource Management (HRM), with a specific focus on the candidate recruitment
and selection process. The study aims to understand how AI is transforming and enhancing
HRM practices and how it is being adopted by recruitment agencies in various industries.
Additionally, it seeks to identify the challenges and concerns associated with the use of AI in
HRM, particularly regarding potential biases and ethical issues in AI algorithms.
The research also intends to explore how AI can contribute to creating a more inclusive and
diverse recruitment process. By examining the experiences and perceptions of recruiters and
HR professionals, this study aims to provide valuable insights into the benefits and
limitations of AI in HRM and how it can be used to improve overall productivity, efficiency,
and effectiveness in the field.
Ultimately, the research aspires to shed light on the strategies and practices employed by
organizations to mitigate the challenges of using AI in HRM and to ensure responsible and
fair utilization of this technology. The findings will help HR professionals, organizations, and
policymakers make informed decisions regarding the integration of AI in HRM and foster a
better understanding of its impact on the recruitment and selection processes.
3. Literature Review :
Artificial Intelligence
Globalization and internationalization of markets have placed immense pressure on
companies to adapt and evolve. IT has become an indispensable tool for businesses to meet
these challenges by driving innovation, ensuring product or service quality, understanding
customer needs, and effectively managing operations in a global context. Integrating IT into
their managerial approach enables companies to thrive in the competitive landscape of the
21st century. In the context of globalization and internationalization of markets, innovation,
product or service quality and customer requirements have led companies to integrate IT into
their managerial approach (Bolwijn et al., 2018; Rachinger et al., 2019; Stank et al., 2019).
The integration of digital technology and the strategic use of data have become essential for
companies seeking to thrive and remain competitive in today's fast-paced and data-driven
business environment. The digital revolution has already produced its effects by transforming
the world into a modern one characterized by data supremacy in every business activity
(Wamba-Taguimdje et al., 2020). This implies the use of digital resources, which vary
depending on the moment: big data, artificial intelligence (AI), 3D printing, quantum
computing or virtual reality (Nicolas-Agustın et al., 2021). AI is one of the digital resource
that involves the development of computer systems that can perform tasks that typically
require human intelligence. In business, AI is used for automation, chatbots, data analysis,
and more.
Human Resource Adopting Artificial Intelligent in the era 4.0
AI has been defined as application as software and/or hardware system which can think like
human and make data-driven intelligent decision (Lucci S. and Kopec D., 2015). One of the
AI integration in the HR department is about leveraging technology to streamline and
improve HR processes while maintaining or improving service quality. AI not only speeds up
processes, but also provides valuable data and insights for better decision-making. The goal
is to create a more efficient, responsive, and effective HR function that benefits both the
organization and potential candidates and employees. Human resource managers often use
specific criteria such as experience, education, age, and other factors to evaluate and select
candidates for job openings. These criteria are important for assessing the qualifications and
suitability of candidates for a particular role. In modern recruitment processes, these criteria
are often loaded into filtering algorithms to streamline and automate the initial screening of
candidates. Resumes are quickly scanned and divided into short lists with filtering algorithms
in line with these criterions (Chang, 2009).
Artificial Intelligence Influence on Recruitment Process
Artificial intelligence techniques can be applied in hiring employees using information
extraction techniques that automate the process of identifying the subject and extracting
relevant information in hiring (Kaczmarek, et al., 2005, 4). Since AI technologies continue to
evolve, it's essential to consider not only the technology but also ethical and legal
considerations, including issues related to privacy and bias, when implementing AI-based
hiring solutions. Furthermore, organizations should combine AI tools with human expertise
to ensure the best outcomes in the recruitment process. Communication is central to the
success of the recruitment process. Effective communication ensures that the right candidates
are identified, the hiring process is streamlined, and candidates have a positive experience,
which can be important for the employer brand. It is important to understand how
communication contributes to the success of recruitment (Allen, et .al., 2014, 143). new
recruitment tools, including job matching tools, have emerged in recent years to streamline
the hiring process and help employers efficiently sift through resumes and identify the most
qualified candidates. These tools leverage technology and data-driven methods to match job
offer requirements with candidate qualifications. Computer-aided job matching can be
applied in various ways using learning-based techniques and genetic algorithms (Montuschi
et al., 2014: 41). Therefore a traditional hiring process that relied heavily on in-person
interviews and assessments, which, while effective in some cases, were also vulnerable to
potential biases. In contrast, modern hiring practices increasingly incorporate technology and
data-driven approaches, such as AI and automated assessments, to reduce bias and improve
the objectivity of candidate evaluations. Once hired, all applicant tracking systems and new
employee records were updated manually, a task that took a lot of time and was prone to
occasional human error (Michailidis, 2018). Online interview platforms, such as Zoom,
prove to be highly beneficial for carrying out preliminary candidate evaluations. Through
Zoom, recruiters can furnish candidates with predetermined questions that they are required
to respond to via video. Subsequently, these pre-recorded video responses are evaluated by
recruiters to determine the most appropriate candidates for further consideration in final
interviews.
Organizations should take into account ethical and legal issues such as privacy concerns and
potential biases when implementing AI-based solutions for recruitment. it is important to
combine AI with human expertise in order to ensure optimal outcomes in the recruitment
process. Effective communication between employers and candidates plays an essential role
in successful recruiting; it helps identify suitable applicants while providing them with a
positive experience which contributes positively towards employer branding overall. new
recruitment tools have revolutionized the hiring process in recent years. These tools leverage
technology and data-driven methods to match job offer requirements with candidate
qualifications much more efficiently than traditional methods. Automated assessments and AI
are increasingly being used to reduce bias and improve objectivity in candidate evaluations,
making them a viable alternative for employers looking to hire quality candidates quickly.
With these modern approaches continuing to evolve, they will no doubt become even more
useful as time goes on. that can be drawn from this information is that online interview
platforms, such as Zoom, are extremely useful for streamlining the recruitment process. They
allow recruiters to quickly and accurately evaluate candidates by providing them with
predetermined questions which they must answer via video. This saves both time and
resources compared to manual processes of applicant tracking systems or new employee
records updating, which were prone to human error. Ultimately, these platforms make it
easier for recruiters to identify the most suitable candidates for further consideration in final
interviews.
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