AI Adoption in Human Resource Management: Evidence from Pakistan

Abstract

In recent years, there have been significant changes in organizations driven by the increased use of new technologies. One of these trends refers to the use of artificial intelligence (AI) in Human Resource Management (HRM). This study aims to investigate the current use of AI in HR departments. Specifically, this scoping study is focused on the benefits and limitations of artificial intelligence (AI) adoption in Human Resource Management (HRM) and employees’ attitudes and knowledge about AI use in their field. The study employed a mixed-methodology approach that combined a systematic review of the literature and an empirical study based on a quantitative survey. For this study, ProQuest, EBSCO, Emerald, JSTOR, and Science Direct databases were used in the systematic review. In addition, 50 HR professionals participated in the study by answering a questionnaire. The results of the research revealed that HRM areas where AI is most often used or can be used are recruitment and selection. However, the professionals mentioned that AI can be implemented in other areas of HRM. Study participants evaluated AI mostly positively, mentioning that AI can optimize many HR processes by automating repetitive tasks. The results of the study showed that the most common benefit of using AI in HRM is the ability to automate repetitive tasks, while the most common limitation is the absence of empathy and “human approach.” Despite the participants’ positive attitudes towards AI, the results of the study revealed that most organizations do not currently use AI in HRM and do not plan to adopt it in the near future. This discovery confirmed previous research findings that AI adoption in HRM has not progressed as expected. Thus, this study revealed a gap between the potential benefits of using AI and its actual implementation in HRM, as well as the need for AI knowledge and training for HR professionals.