IMPRESSIONS- February 2019

IMPRESSIONS FEB 2019

HOW ARTIFICIAL INTELLIGENCE IN AFFTECTING HUMAN RESOURCES

INTERESTING FACTS ABOUT HR

ALL ABOUT HUMAN RESOURCES

DECEMBER 2016

IMPACT OF AI IN HR DECISION MAKING

by Mohd Hashim Ali-MHRM IIT Kharagpur

Difference between HR decisions based on Analytics of AI vs.

Human Intuition

Impact of AI in field of Human Resource As we all know for most of the business Analytics now a days 4 things are very important to In Human Resource Analytics it is a grow your business at top level and make it process in which we apply analytical sustainable for long period first is Finance approach using mathematical second is Strategy linked with your application and statistics on available how HRA take operation third is Human Resources resources by cross checking its Management and then finally fourth one is performance & outcome w.r.t firm. So birth in HR Marketing & Sales. when HR practices enabled by industry?

Most probably HR Function is seen as an information technology that uses administrative and enabling function, rather descriptive, visual, and statistical than a strategic business function. The key analyses of data related to HR reason is the HR teams’ inability to link its processes, human capital, initiatives with business strategy or a organizational performance, and business problem, and quantify its impact on external economic benchmarks to HUMAN RESOURCES business. In conclusion, Artificial Intelligence establish business impact and enable (AI) will help the function take strategic HR data-driven decision-making it is decisions that impact the very business and termed as HRA (Human Resource help quantify such impact.

Analytics).

But the main question which arise in our mind how HRA take birth in HR industry?

As we know most important functions of HR (Human Resource) professionals is to evaluate talent management and development techniques and identify opportunities to more effectively manage human capital. As human behavior is much more complex and much less predictable as that of machinery or other tangible assets, so the optimization and decision of human capital allocation has, historically, been a difficult undertaking. So in this situation use of HR analytics has noticed a recent rise in popularity in response to this challenge While statistics are obviously a major component of any analytical exercise, analytics also involve a mental framework and logical understanding of the information at hand and the problems that need to be solved.

Analytics may be viewed as a “communications device,” bringing together information from multiple sources to provide an actionable representation of a current state and a likely future. It provides an evidencebased approach for decision making so finally we can say that analytics is a logical method that enables technological manipulation of information to provide insight on relevant issues.

How AI helped in HR decision?

As we got to know that within the realm of data analytics, different levels of analysis exist such as descriptive analysis, predictive analysis, and prescriptive analysis. Most commonly employed by organizations, in descriptive analysis we gather data on past events or trends which include such measures as turnover rates or cost to hire a new employee. Predictive analysis evaluates why past trends have occurred and how they will change or continue without intervention. For an instance predictive analysis would be the use of a model to increase the probability of selecting the right candidate for a job.

Analytics through AI must be rooted in an understanding of the data to be used and the context under which that data were collected if any meaningful insight is to be gained. This understanding will help to make decision for the resources that are required and the form that the analysis will eventually take place.

Impact of Artificial Intelligence on HR planning decision 1. It helps Analysing Organizational Objectives 2. Forecasting Demand and Supply of Human Resource 3. Estimating Manpower Gaps 4. Formulating the Human Resource Action Plan

Basically through Artificial intelligence we can maximize the use of Human Resources and ensure their ongoing development because it secure the production capacity required to support Organizationa l objectives.

Use of AI in Talent Acquisition Decision

 Use of AI in Performance Management based Decision

As one of the researcher Jason Dana, an assistant Professor at the Yale School of Management, said that the problem with (unstructured personal) interviews is worse than irrelevance. They can be harmful; undercutting the impact of other or valuable information about the interviewee.

I truly believe in her statement because it may be difficult to train front-line managers on BEI, especially with high attrition in the segment, and monitor execution instead it may be easier to train the machine on BEI and ensure impeccable execution, leading to better hiring decisions that would predict performance significantly better than that predicted by present hiring practices.

So this could be coupled with the data from online tests on functional competencies, behavioral competencies and personality tools. And like this AI could be used to find patterns between the outputs of these tools and that of BEI on the one hand, and performance of people on the other. By following this way machine learning will help us in superior hiring decisions, it will also eliminate the need of front-line HRBPs and free up front-line managers to focus on their given job roles.

AI technology can provide abundance of data on job satisfaction, performance, and skills so managers can take quick decision regarding their workforce. It can be used to alert managers to employees who are unhappy and thinking of leaving the organization so there can be proactive intervention to retain them. So having such technology can increase retention can have a huge impact on your bottom line.

So this could be coupled with the data from online tests on functional competencies, behavioral competencies and personality tools. And like this AI could be used to find patterns between the outputs of these tools and that of BEI on the one hand, and performance of people on the other. By following this way machine learning will help us in superior hiring decisions, it will also eliminate the need of front-line HRBPs and free up front-line managers to focus on their given job roles.

AI help to HR take decision against Unethical Practices in organization  Assigned HR manager will be able to have a proof against the person that allegation exists in form of Document date, time and details of initial report/discovery.

AI provide high security which can maintain confidentiality (Access on data to only authorized people who need to know about the fraudulent act). Ex: Fake bills Invoices on any type of leave travel allowance or company trip for work purpose or important client data theft.

TOOLS & SKILLS RELEVANT TO AI WHICH IMPACT HR DECISION MAKING PROCESS? Basic Data Analytics: Mean, Median, Mode, Minimum, Maximum, Range, Percentiles .

Intermediate Data Analysis: Variance, Standard Deviation, Correlation Data Interpretation: Identity data for analysis, prepare / clean the data for analysis Quantative Data Collection & Analysis: Interview Techniques, Interview Coding, Content Analysis

R STUDIO

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R is the most used HR analytics tool for statistical analysis and visualization which is very suited to explore huge data sets. Through this we can analyze and clean data sets with millions of rows of data. Another example of an R package is ggplot, which helps you to visualize graphs and design chart.

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When we talk about HR analytics tools, we shouldn’t forget Excel because it helps when you want to check how clean your data is, you can easily transform a dataset into a table and check each column’s data range for outliers. Some other functionality such V-look up, Pivot Table are very useful in this tool. Through Excel VBA you can automate tasks in Excel by writing so called macros.

EXCEL & MACROS

POWER BI

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With Power BI, it’s a cinch to connect to multiple source systems, like SQL databases or Oracle database which help to connect with available people’s data. Finally all these different data sources are then combined in Power BI. Simple data aggregation process enables you to combine multiple data sources in one large database. On which you can do rigorous analysis.

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Most commonly used tool in HR analytics is SPSS tools. Which is having very userfriendly interface through which you’re able to analyze data without having extensive statistical knowledge.

So we know despite overwhelming evidence of demonstrating the greater efficacy of analytical approaches, people still believe they can intuitively predict future behavior. This phenomenon is especially prevalent in organizations, where employers often prefer approaches to selection that rely on intuition like below process

SPSS

Difference between HR decisions based on Analytics of AI vs. Human Intuition Many people feel that all-consuming pursuit of data analytics in AI is reducing the importance of human intuition in the business decision process because AI facilitate experimentation to identify the reason behind performance improvement and quantify the return on investment that such efforts may provide.

But it is also true that human intuition has advantages that just can’t be replicated by software and vice versa so all decisions cannot be wholly grounded in analytics and that instinct and anecdote may be used in decisions involving human capital, pointing to research that most people are able to make fast and accurate judgments of personality and character by their own intuition.

That’s why some people trust themselves more than AI designed tools which is evidence-based forecasted and some think that algorithms based on evidence are better in predicting the future than human forecasters. Despite this confusion many times business leader go with human forecasters to predict the future instead of the evidence-based forecasters. Because of his/her vast experience and earlier taken fruitful decision.

It’s also fact that approximately 75% of HR departments do not have usable base metrics. Which shows that most individuals in HR functions lack the skills, knowledge, and insight to ask the right questions of the HR data they have at their disposal this is due, in part, to the non-central position of HR within many organizational hierarchies and HR’s frequent inability to obtain support for analytical efforts.

But Still the goal of HRM is to provide an organization with insights for effectively managing employees so that business goals can be reached quickly and efficiently which is possible by using AI in HR Analytics by using right tool for right task by doing partnership with vendors like Workday Inc., Oracle, SAP and who can compete with many smaller vendors to deliver the best HR analytics software as a service in the market to improve our HRM. It turns out that there need to be a balance of relying on numbers and trusting common sense. Analytical techniques through AI, in and of themselves, will not provide limitless rewards to those organizations wise enough to seek their use. However, I believe that the application of AI in HR decision, combined with human intuition for judgment and managerial expertise, will allow better conclusions to be reached and practice.

AI and HR “Artificial Intelligence is about replacing human decision making with more sophisticated technologies” -Falguni Desai

NAMAN AGARWAL NMIMS Mumbai The merits of Artificial Intelligence in HR do not come instantaneously, however. It includes shortterm, medium-term and long-term benefits . Taking the human out from HR does not indicate that technologies would replace the complete workforce, in fact the technology will enhance human capability.

Let’s delve deeper in this area and understand various effects of AI and automation in HR in more detail.

Artificial Intelligence (AI) is a breakthrough in the field of computer science which is concerned with the development of intelligent machines that react and think like humans.

Artificial Intelligence has been around us for decades, but it is in recent times that it has emerged bigger like never before. The technology is penetrating every domain be it Finance, Marketing, HR, Operations and most of all Information Technology (IT). The controversial nature of AI has made it a matter of debate across the globe.

Over the last decade artificial intelligence has slowly and gradually trickled into domains which once were considered completely driven by humans. One such area in an organizational set up is the Human Resources and Recruitment department. This is a unit where AI can essentially be used to accelerate and assist human effort.

Human Resources as a domain has witnessed significant growth and changes in the last decade due to evolution of technologies. In recent times, AI is reshaping the manner in which companies plan, hire, manage and engage with the workforce. High-end data driven technologies are making their way into HR industry since businesses are now focusing more on employee-oriented culture. Recruitment is no more a cumbersome process for HR personnel since it no longer entails activities such as manual screening of resumes, making personalized telephone calls/interviews and even replying through personalized e-mails. Such mundane tasks are now taken care by advanced technologies that are designed to replicate human behavior and intelligence, therefore enabling HR specialists contemplate a bigger picture.z The merits of Artificial Intelligence in HR do not come instantaneously, however. It includes short-term, medium-term and long-term benefits. Taking the human out from HR does not indicate that technologies would replace the complete workforce, in fact the technology will enhance human capability. Let’s delve deeper in this area and understand various effects of AI and automation in HR in more detail.

BENEFITS OF AI IN HR ELIMINATION OF BIASES 1

Dependence on human intuition always introduces some bias. Researchers have found that even tough employers may try to be inclusive in hiring candidates, they may unknowingly indulge in recruiting candidates who are more like them. This is what researchers call “unconscious bias”. Thus, introduction of AI and relying on data rather than only on perception and intuition would reduce potential for human bias. AI can thus present HR experts with candidates who might have been otherwise screened out due to tendency of humans to favor people with similar competencies and traits.

SUPPORTIVE DECISION MAKING 2

Artificial Intelligence involves data sets interpretation in a way that allows decision making efficient. Via Predictive analytics, AI offers insights into employee gratification and identify situations that may later become an issue or problems and offer solutions as required. Some of the tasks where AI could benefit HR decision making are: · Vacation Requests: Cognitive engines inform employees who want to put in for vacations that whether requests would be approved or not beforehand. In case multiple requests from other employees are already in the queue, then the employee would know that his/her request is unlikely to be approved. · Team Training: Team managers could be provided with a list of training opportunities for team members that would give them a more systematic approach to employee training. Depending upon individual skills and competencies, managers could provide training facilities to team members to refine their skills and develop competencies. · Hiring Processes: Employers are able to recruit and hire strongest of candidates via analysis that goes a step beyond a mere job description matching. Focusing on multiple parameters such as past performances, culture, background and career alignment, AI can instantly identify whether the candidate is good fit for the organization or not.

PERFORMANCE MANAGEMENT 3

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Evaluation of performance is the next significant decision post hiring process. Feedback and appraisal are the biggest challenges in the Performance Management system. Managers and HR personnel avoid giving hard feedback as it requires training on art of giving feedback and calls for significant evidence. Such feedback can be carried out with the help of AI-powered video platform, which could record and maintain conversations. Machines would also gather and collect regular performance data and lost opportunity data in order to provide evidence during feedback process. Post feedback sessions, it would collect post feedback performance data to create and evaluate patterns of impact on employee performance of feedback sessions. The AI-based BOT would also provide recommendations to managers to help them improve their feedback providing skills.

DECISIONS REGARDING COMPENSATION Making compensation decisions is a very complex process. Many-a-times there are conflicts between the HR and employees or managers and employees regarding the compensations provided. Compensation decisions are made on various parameters such as performance, potential of people, employee expectations, market value, hierarchy level, industry standards as well as peer evaluation and feedback. Therefore, if organizations could use AI in such practices, it would help establish patterns of performance, potential, compensation and individual market value.

This would enable firms make compensation decisions more accurately. Therefore, Artificial Intelligence in Human Resources can help in making better decisions in the areas of manpower planning, productivity & Performance management, optimal goal-setting and effective recruiting decisions thereby leading to efficient and best-fit teams.

AI will change the face of HR and the quality of human capital. It would also help harness the human capital in a better way than it being utilized today.

DETECT ATTRITION PATTERNS Of late, AI is being under various domains of organizational functioning. The use of AI as an evaluation of attrition tendencies may help companies do away with the problem of increasing attrition rates. For Instance, IBM Watson is working towards developing a predictive model for use by companies. Watson would identify the simplest of reasons which go unnoticed many-a-times thereby contributing to employee attrition by analyzing a structured data set fed into it. A score is generated that shows the possibility of employee leaving the job. This model can therefore play a crucial role in resolving the attrition issues of an organizational HR unit.

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ENHANCED EMPLOYEE RELATIONS AI-powered chat bots have the capability to create personalized and streamlined employee experiences. This would otherwise be time consuming without AI implementation and would surely benefit for on boarding procedures and training requirements. A chat bot would help respond to the commonest and simplest of HR queries and track learning patterns and performances of the workforce. Therefore, by bringing together all the essential elements of a workplace interaction, AI adds “smart” element to the field of Human Resources.

ISSUES

Though an effective technology, it is still under experimentation. Several issues that may occur in Human Resources if Artificial Intelligence is adopted are as follows:

1 LACK OF NUANCES OF HUMAN JUDGEMENT In case a company is looking forward to diversify its workforce, using an AI may not be a suitable option. Many candidates out there have a typical work experience but may still be suitable fit for the organization based on their personality, interests, character, behavior and work ethics. These are some factors that require human judgement and decision making. Therefore, depending solely on AI can greatly reduce diversity in the workforce.

2 DEPENDENCY ON CERTAIN KEYWORDS Artificial Intelligence depends on certain keywords in order to scan through a pile of records or candidate profiles. This can prove to be a loophole for candidates who are familiar to such technologies as they might end up including such keywords that the AI tool is likely to look out for in potential candidate hiring process.

Therefore, they may trick the system and camouflage themselves as good fits for the company tough they are not.

3 ACCURACY AND RELIABILITY Tough AI has come a long way in terms of advancement, it is still not an exact science and therefore the results can be inaccurate. Live example of this can be seen in Amazon’s case.

Amazon had an issue with their AI-powered recruitment solution and had to ultimately shut it down. Sometimes incomplete training data does not truly represent the pool of applicants and this might skew results.

Recent worries about Russian interference in the US presidential elections ultimately leading to Donald Trump emerging victorious, has clearly shown that hacking into IT systems, using misinformation and fake news can have serious consequences. From the organizational perspective, the risk is that malicious or unethical competitors may hack into systems and steal the data. They could even make alterations to decision making algorithms. If we become more dependent on AI, then our exposure grows.

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THE ROAD AHEAD

The future of HR will be a team based approach, the one in which humans and machines work together to find solutions.

“Humans Vs Bots” will not be the future of HR. Despite all the capabilities and opportunities provided by this new tech, companies would still need humans in the HR process.

The skills required to be in HR would advance as all skills sets throughout the organization will need to be digitally capable.

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AI and HR "It has become appallingly obvious that our technology has exceeded our humanity.”

Albert Einstein

DEBASISH MAHALIK

IRMA

After so much critism on the brighter side now the companies will be smarter, sharper, and faster and can have improved accuracy and reliability in decision making. “For businesses, it will have a significant impact on productivity – people will spend less time trying to do stuff,” said David Wilson, founder and CEO of Fosway Group. “They have the right information presented to them at the right time. It will impact quality of decisions.” After all, what matters for a company? It’s the profit. AI implementation will definitely improve the profit by multiple folds.

When it comes to predictive analysis of a firm AI is always a better alternative than human. AI adapts what we know about how the brain works into data processed by systems. The human brain complexities are commonly compartmentalized to cerebral functions within each AI type. The idea is to remove the subjective factors in solving complex problems and designing solutions that need an evaluation by means of statistical tools.

The above quote signifies the current ongoing technological shift on our planet. Without knowing the gravity of outcomes our Homo sapiens curiosity is driving us towards a dark world. We are human and humanity is our attribute. That makes us different in terms of decision making where our emotions, intuitions come in to play. The same goes for managerial decision making. Our hunger for continuous success gave us ability to go beyond imagination and create wonders. But each wonder has some pro and cons. As we know that the human force is a major component of an organization, the market leaders always thought of guiding the fleet as a machine in a more disciplined way, more standardized way, and more formalized way. This dream came true with the offset of AI; artificial intelligence.

Artificial intelligence is a mere representation of technology as a substitute of human in order to take effective decisions. The AI application is not new in the field of management but in recent future this gained the momentum as many companies decided to take this as an option in near future. Even many successful global leader firms already adopted this technology in their HR operations and the results are satisfactory, sometimes outstanding.

But still when we hear about this issue the first thing came to our mind is the result of raging hormone. We start criticize it. The cause is humanitarian. The question what troubles us is how can a machine replace human? It does not have emotion. It doesn’t have the intuition. It can only find some algorithmic pattern. Find some data and process it to produce an output which is supposed to more reliable. But the major issue here is whether the AI is a tool for decision making or it itself can be the decision making body?

This is a big question mark. If this will be thing then there is no doubt when in future the machines will evaluate other machines for recruitment. The underlined sarcasm of this statement can also depict the unseen, unpredictable darkness surrounding humanity. As per Gartner, Artificial Intelligence and Machine Learning (ML) will be one of the top five investment priorities for over 30 percent of CIOs by 2020. This is a very big shift in the world of technology whose failure can affect the whole population.

L'Oreal, world's largest cosmetic company has transformed its talent acquisition practice inside out. Its adoption of AI in recruitment and other operations completely transformed the organization. L’Oreal adopted AI and Machine Learning to avoid the non-value adding tasks and focus on more value-added tasks in recruitment. For the screening process L’Oreal adopted Chabot, Mya which helped job seekers like a human recruiter, screening potential candidates for the company. Mya which works on artificial intelligence and natural language processing ask questions, verify qualifications, and answer questions from job applicants about things like company culture, policy, and benefits. After Mya finishes asking questions and screening for qualifications, it would deliver updates to the recruiters letting them know about the "best-fit" and "non-fit" for the job role. s based on the cultural scores they had.

While Mya was taking care of the harder aspects like qualification, location, salary, the organization felt the need to automate the assessment of candidates on the softer aspects too. So, the company’s internal team developed an algorithm which asked three questions from the candidates who have completed the initial interaction with Mya. The three questions, Tell us about a project that you worked on failed. What did you learn from that project?

Tell us about the project where you were working with the multi-cultural teams and what experience did you have?

Tell us about a situation where you are convinced about your idea, but your seniors were not. How will you convince them?

The algorithm compared the answers given by the candidates with the answers given by the L’Oreal employees and generated the cultural fit scores. This information was fed into the Application Tracking System which helped recruiters to arrange CV

Over the last seven months, 13,000 candidates have spoken to Mya. An average recruiter takes 45 minutes to screen, schedule and do a phone interview. Mya took charge of doing the entire process in 4-5 minutes. Hence, saving 40 minutes per CV. Bhoite shared, “We saved 45 working days on a six months period for our UK recruiting team. Thus, helping them to redeploy this time in other value-added tasks.”(Source: people matters)

SOCIAL PSYCHOLOGY | 72

This shows that the AI interventions will be a job creator rather than job destroyer. But is the truth or the unicorn the world will never see? This still arouses few doubts.

This shows that how AI is transforming decision making in managerial firms. But Peter Meerman, director of global learning systems at Philips, said machine learning had the potential to support people in their work, but the technology also raises deeper questions of trust.

“When a machine learning algorithm gives a recommendation, is that really based on my personal situation, requirements and context, or is it because a company wants to push to me?” he said. “As a consumer, you have no way of knowing.”

The research, based on interviews with 500 HR professionals across Europe, shows that although companies have their minds on future technologies, most are also struggling with their existing HR systems. Nearly 70% say their current IT systems do not meet the needs of the modern workforce.

“HR is struggling to keep up with the level of change under way,” said Fosway’s Wilson. “It is struggling to be digital, to be agile, and struggling with demographic changes in the workforce.”

The AI can be a tool for the solution, but making it the solution itself is still under question mark. When the firm looking its benefit in HR policy on the other side it should also think of the opportunity cost of using this. If with proper care and strategy the AI is not dealt with then there is no doubt that we will be living in the age of Transformers (movie).

AI NOW

UNDER THE SCOPE

RISHABH CHAUDHARYV JAGRAN COLLEGE OF ARTS, SCIENCE& COMMERCE T he

first question which comes in everyone's mind is- Can AI replace management and managers?

It's an interesting concept to think about because if you look at an organisation.

What does a manager typically do?. They make decisions, they look at data and they make hard choices than most of the people inside the organization can't actually make. But if we have an "Algorithm" that has a much broader data set it can actually make more soild and sound decision, based on looking at that data that completely eliminates any pe of guesswork or emotional kind of decision aking and it will always just make kind of the best move, sort of ike we make in a game of 'chess' for example.

As I think that this infusion of (AI) and technology in the workplace or (HR) is that we will have to have better more human managers and leaders that are able to connect with the employer and focus on that employee experience. And it will really boost people up. That will have a direct impact in "Human Resource" decision making with the introduction to "Artificial Intelligence".

It eliminates human emotion, it sort of always makes

I think Artificial Intelligence will replace "bad managers".

the best possible move and so to do that you don't

Managers that simply believe that they control all the

need a manager for decision making. It is been done

nformation that they should make all of the decisions.

by a iece of software (AI). But that's not entirely the

Managers that don't have that type of human

case, because one of the things that good managers

connection. They don't "engage" they don't "empower"

ctually do is they manage eople. They lead people,

they don't "inspire" their employees. Those managers

they manage motions, that's the part of a piece where

can absolutely be replaced by artificial intelligence and

Artificial Intelligence is not yet able to reach and might

because they're really not doing anything that software

not reach as well even in the long- term future. Now,

can't do on their behalf. However good managers who

this is going to take a long time before software can

are not only are used to making decisions but managers

anage and replicate these types of human emotions

that also inspire engage, empower. When it needed

and enable "empathy" and kind of connecting with

they bring together their teams. Those types of good

humans. So now we can answer the above question up

managers are not going to be replaced by artificial

to some extent.

intelligence or by any other software.

BENEFITS Human Resource(HR) has always been about people in many ways that are changing thanks to "AI". Artificial Intelligence can help improve human resource management in different significant ways.

Survey reporting and analytics can send out a report on the number of approvals pending for a new hire it can also send out important statistics like the number of approvals pending for a new hire, it can also send out important statistics like a number of candidates interviewed and hired over a specific period.

Artificial Intelligence can schedule both meetings and interviews which involves coordinating with multiple people to sync calendars. Executing basic workflow tasks like preparing a meeting from "memo" before a meeting and circulating it to the attendees these applications are the preliminary usage of artificial intelligence for human resources and this first wave is already seeing positive signs, however, if we look at the long term basis, these value will bring a lot of organisations together and will be far more useful in the future.

Human Resource needs to access to real-time, accurate data. It needs to be easy to access and it can be easily manipulated and unchallengeable.

With accurate, real-time data, Human Resource(HR) professionals can confidently present recommendations using data to create predictive analytics and trends, that align to the business strategy.

BHAVYA JAIN, IBS HYDERABAD

AI and HR

Once Stephen Hawking stated, “The development of full artificial intelligence could spell the end of human race” and it has been observed how artificial intelligence and machine learning is driving into many fields as well as replacing humans with machines. Artificial Intelligence came into existence to make machines work but now it has become the world of automation.

CURRENT SCENARIO – Today due to AI’s omnipresent nature, it’s easy to grab the intent ubiquitary. Over the last decade, advancements in AI have been steadily growing. Now there are better computers, algorithms and connectivity. In brief one can portray that technology is climbing the ladder of new set of efficacy. There are no bits and pieces but isochronous habitation in each and every field round the world. It was near 2007 where Internet of things, iPhones, digitalization, sensors, etc brought empiricism to digital world.

It was earlier Deep Blue who defeated and now we have DeepMind, the artificial intelligence arm of Google’s parent company that developed AlphaGo which has debacle victories of many human players. Significantly we see that now the focus has shifted to Big Data. If see from the year 2017 and 2018, the most in demand jobs are of Data Scientist and Machine learning engineers.

According to AIbusiness.com, about 77% of jobs are likely to be automated in China and 69% in India. AI is all encompassing different sectors. There are imperative parley about AI and Machine learning being into c-suite and in decision making. Companies like Genpact, Cisco, Ovum, PwC, LinkedIn, etc have done researches which show that only 45% of workforce is ready to work with robots in future but still 10% believe that AI has become a threat to their jobs. Earlier it was just the term that was needed to explore but now we require AI trainings that help the workforce to put machines and humans together on work.

IMPACT OF AI IN HR DECISION MAKING – Being management student I see the trends how AI is into the realms of management and so one of the most important aspect of manager’s decision making is been influenced by AI. So, one can say that by the end of 10 years down the line, the era of human recruiters will come to a standstill. When we live in the world of software and technology, then why not to make inroads in HR processes. Let’s begin in how it has advanced and its reverberation in HR Decision Making.

ARTIFICIAL INTELLIGENCE THRESHOLD –

PROGRESSION OF AI –

A young British polymath, Alan Turing brought this concept of AI in his 1950 paper: Computing Machinery and Intelligence but due to inefficient computers of that era ceased the topic. After a leap of five years, the notion was instated through a program designed by Allen Newell, Cliff Shaw and Herbert Simon known as Logic Theorist.

Considered as the first artificial intelligent program and presented at DSRPAI, the term AI was then coined first.

From 1957 to early 1990s, artificial intelligence faced the roller coaster ride. From computers which were fragile to store commands and present intelligence to AI which has been revived by algorithmic toolkit and funds; Machine Learning had been coming into the path of decision making. The first achievement for AI was in 1997, when World Chess Champion Gary Kasparov was defeated by IBM’s Deep Blue – A Computer Chess Game. Now we are “BIG DATA” Generation known.

Till that we have seen that HR has been one of the disparaged sectors but the introduction of technology in this domain is building it as a brand. Most of the successful HR pro states that to employ best talents, there is a need of digitalization. Human recruiters do not want to syndicate the geriatric process of recruitment. The potential of AI to replace major HR functions are all set.

We have now AI Chatbot software for recruitment which is coming up with technology that makes recruitment process a piece of cake. But this does not mean that it will replace human recruiters but it will actually help head hunters to focus on more value added services. So it’s paramount to understand the advantages of AI in HR decision making.

UPPER HAND IN AI – Since we are new to AI technologies, it makes difficult for us to understand the benefits of it that are beneficial for both recruiter and candidates:-

ACCESSION IN PROCESS: 1

Analysts say that if the procedure is lethargic, it gives an edge to top recruiters to get the best talents. Here comes AI that helps to compile giant data and makes them understandable. The elicitation of the greater content is necessary to fill the loop holes in the process of recruitment. Impress.ai is one of the AI Chatbot software that helps to make the recruitment process easier and help to prepare recruitment metrics dashboard accurately.

ADDITIONAL COST REDUCTION: 2

Hiring costs vary from company to company but mostly in manufacturing companies the costs reaches upto ₹ 3, 55,900 and in service related industry ₹ 71,180 in hiring new employee. So what if the person whom you have recruited leaves the company in a very short span of time? The cost incurred on the same becomes a poor investment and the costs incurred on him/her goes in vain.

But when AI systems are in picture then costs will come just to the department. Also it will reduce all the manual tasks which can be automated.

REMOVING PREFERENCES AND MAKING FAIR PROCEDURE: 3

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It happens while the recruitment procedure takes place, there are certain decisions which are questionable and makes the process unfair. This hampers the companies’ identity too. So to remove biasness, algorithms stem which comes out from AI help in eliminating these effects. These bring more chances for the candidate to be selected based on his/her talents.

MAKING AN ENGAGING CHANNEL: The purpose of adopting AI in enterprises is to make the working more efficient and crystal clear. How AI can build engaging channel for candidates? Through step by step guidance interview process software one will be able to appreciate more of candidate’s potential and if the person is not comfortable in the role, they can be shown with better opportunities.

It has been seen that enterprises that have implemented AI have grown about 270% in last 4 years. Now the business decision making have become more data driven, thus the requirement of AI is at its high. As stated by cmswire.com that AI analytical tools are helping the recruiters to have more interactive base with the potential employee and taking better decisions. The myth that AI will replace humans would not be possible since machines still require human intelligence. One can say it will not take jobs but help workers do better jobs and uniquely human skills set will grow in importance.

“IMPACT OF AI IN HR DECISION MAKING”

Akash Gupta, Rajiv Gandhi Institute of Petroleum Technology

Economies of the world are observing several changes happening at a very fast pace; to keep up the competition and to move ahead from the competitor while creating a separate identity of themselves in the face of the world. Changes are happening in all facets of the life, moving in the business world the changes that technological development had brought are enormous in terms of the digitization and most prominently in the labor market. Developmental changes in the business world has seen rise in the labor policies to a much greater extend. The benefits of the workers and employees are the main objective in today’s society.

Thus comes recruitment and the selection of the people for a particular position with particular specified skill sets in terms of the skilled labor/employee. The innovations in the technology have dual impact on the employment and that includes:

Displacement effect,

in which the workers are displaced from the task they were directly involved with to another.

Productivity

effect, in which the demand in the industry is increased due to the progress in the technology.[1] Industries are changing very rapidly in terms of the automation and thus in terms of the recruitment they undergoes thereafter. Initially what use to happen was that a particular opening for a job is there so there will be some pre-requisites for the same to fill-in and thus to handle it, but these days the innovation in the automation and the machinery used had taken over the place of the humans for the placement of the job openings in real time, as the machines are getting adapted to the particular set of the skills that are needed for the particular job. What is happening is that the displacement of the humane touch from the very basic operational level because the latest technology has enabled the machinery to adapt itself in a short span time that whatever is the need of the hour that machine can take care of it by making the necessary changes in its structure and dimensions to fulfill the requirement, thus forgoing the task of the recruitment of new employees and thereby reducing the cost to company.

Usually what was seen when the displacement use to occur in a typical industry for an employee was that particular person/worker is displaced from one particular work and was assigned some other work to perform (displacement effect) but now the increase is demand for the skilled worker is increased up to a certain extent in a very specified field or business that uses the automated machineries as people are needed to look after and to maintain the machinery employed in the industry, instead of doing the work by themselves now they have to look after the work that would be carried out by the machines (productive effect). There were two sets of situational examples that could be easily seen in today’s world with the use of the modern technology.

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We all are surrounded by the applications of the modern technology, for example the use of the internet in terms of the social media presence has made the business firms a forerunner when it comes to apply their marketing concept and also when it comes to recruit someone for a job that requires diversity of interest as a pre-requisite. The technology allows us to be present in a virtual space that surrounds every one of us in real-time and because of which the firms could get a broader picture of an individual I terms of its habits, liking, behavior, personality and other varied aspects. Business Analytics, could now be seen as a branch of Human Resources in respect of analyzing the behavior of the applicant for a particular job profile. With the help of the data that an individual is generating at every second of his/her online activity whether on any social media or on any other website, these bytes of data could be analyzed to generate well-connect framework of the observations that would then be helpful in selection of a candidate. But with the loads of data the problem of the data handling is also there which needs to be assessed properly in terms of security and also in terms of the usefulness. Because not every piece of data could be any use for an industry person, here in terms of the recruitment of a person. The refinement of a very essential step in these sort of practices where the recruitment depends on the date procurement from the online activity of an individual. [2] Artificial Intelligence is the technology that was discussed so far through which the world leaders are aiming to bring another mass revolution in the world i.e. Technology Revolution. The targeted segments that could be aimed within this revolution could be: Marketing Operation Finance Also, Human Resources.

The world is expanding and so is the technology and the related field of interest that one can generate for the industry on belongs to.

[1] Petropoulos, G., THE IMPACT OF ARTIFICIAL INTELLIGENCE ON EMPLOYMENT. Praise for Work in the Digital Age, p.119.

[2] Human Resource Management 14th edition, Pearson Publication by Gary Dessler, Biju Varkkey