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THE IMPORTANCE OF ARTIFICIAL INTELLIGENCE SYSTEMS AS A NEW
DECISION MAKING AGENT IN HRM
Article · October 2023
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SOUTH INDIA JOURNAL OF SOCIAL SCIENCES
ISSN: 0972 – 8945
Vol. XXI, No.4, January – June : 2023, 78
THE IMPORTANCE OF ARTIFICIAL INTELLIGENCE SYSTEMS AS A NEW DECISION
MAKING AGENT IN HRM
K. Gayathri, Part-time Research Scholar, Department of Commerce, VISTAS, Pallavaram, Chennai
– 600 117
Dr.K. Majini Jes Bella, Assistant Professor & Research Supervisor, Department of Commerce,
VISTAS, Pallavaram, Chennai – 600 117
ABSTRACT
The aim of this paper is to examine the importance of artificial intelligence system as a new
decision making agent in human resource management. The AI tools used in HRM decision making
process in recruiting and selecting, developing and retaining. With artificial intelligence system in
HRM, the organizations can enhance the efficiency in recruitment, selection and gain access to the
larger recruitment pool. The artificial intelligence system in HRM, subjective criteria such as partiality
and favoritism are less likely to play in recruitment and selection of employees. The artificial
intelligence system in HRM also potentially positive impact on the development and productive
utilization of employees. The competition between the enterprises has been intensified. If an
organization wants to adapt social development, it is essential to strengthen the internal management
system of the organization. The internal management system also needs to rely on the human resource
management. The aim of this research is to study AI system is adopted in organization’s human
resource management.
Keywords: Artificial Intelligence, AI system, Decision Making, HRM
1. INTRODUCTION
The Artificial Intelligence system in HRM can include the automation of repetitive
administrative tasks. AI not only saves HRM from completing time-consuming tasks also it improve
the efficiency of the employees. Moreover, by automating administrative tasks, the HRM employees
can focus on more valuable tasks as well as reduce the workforce. The Artificial intelligence is
potentially transformative force that is likely to change the role of the management and the
organizational practices. Jarrahi, (2018) Artificial intelligence is having revolutionary impacts on the
organizational decision making process according to Thomas et al., (2016) it is redefining the
management models. Artificial intelligence potential usefulness as a tool to improve the HRM strategy
and the performance is being increasingly recognized not only in the developed countries, especially
in emerging economies. According to Ghosh and Rajan, (2019) the private and public sector
organizations in emerging economies are under pressures to develop the unique strategies in order to
deal with the economic and political change, increased competition from the global market and some
of the other factors.
The incorporation of Artificial intelligence in HRM could emerge as a key component of the
organizational strategy. The rapid development of the knowledge economy has broken the barriers of
information transmission and at the same time it brought new business ideas, methods and the change
of thinking mode has made the people more and more aware of the importance of human resources.
The human resources plays an important role in the development of production also it guarantees the
implementation of the organization’s business strategy. With the continuous progress, the human
resource management are facing many problems, like the challenges of structural diversification and
the competition diversification. The importance of organizational human resource has made the status
of organizational management increasingly promoted.
The company need to use artificial intelligence system to design the human resource
management and improve the quality of employees to make the organization develop toward a
scientific and reasonable method. Organization uses artificial intelligence technology to mine the
relevant data of the organizations, understand the situation of the company in a timely manner, and
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Vol. XXI, No.4, January – June : 2023, 79
adjust unreasonable rules. This study analyse the feasibility and practical significance of the AI system
in human resource management.
2. REVIEW OF LITERATURE
Sonja K.Otting and Gunter W.Maier (2018), examined that the type of decision agent namely
humanoid Robot would denote the strongest relationship between the procedural justice and the human
behaviour. He conducted the research in two experiments with the results showing the importance of
procedural justice for both the human and the decision agent system. But he failed in his research to
prove the interaction affects both of these things.
Yochanan E.Bigman and Kurt Gray(2018), revealed that the people are not interested in
autonomous machine making model moral decisions. In his studies he made it clear that the machines
cannot think and feel on its own which is difficult to accept this concept. He studied by trying some of
the other routes, but the aversion machine moral decision making cannot be totally removed.
According to Garima, Vikram, and Vinay (2020) the usefulness of employees, HR
professionals, and organization. The AI is seen replacing the routine jobs in Human Resource
Management with less intervention from the humans. The AI system will help the HRM to develop
the skills of the human capital.
Jia, Guo, Li, and Chen (2018) ascertained that the artificial intelligence system will useful in
HRM for recruitment, selection, training and other managerial activities. So most of the companies are
adopted the AI systems in the decision making process of HRM.
3. ARTIFICIAL INTELLIGENCE
Technology is one of the most important influential factor in an organization. Since, the 19th
century, based on AI technology the role of robot has been replacing the employees in the production
department. The third revolution began in 1970s the personal computers and internet entered into the
working life and the human labour also replaced by machines. At present the digital technologies such
as machine language and artificial intelligence are entering into the day to day working at the
workplace. It lead the transformation in business activities.
An “Artificial intelligence (AI) is defined as “an ideal intelligent” the machine that is flexible
agent that identifies Search Data mining is a continuous process. In the process of data mining the
company need to classify the objects according to the rules. The aim of Artificial Intelligence is to
replicate the aspects of human intelligence like learning, perceiving, reasoning, critical thinking, etc,.
The computer programs are guided for Artificial Intelligence. AI as an “intelligent agent” like the
machines act intelligently as humans by mimicking the human intelligence and which is made possible
by feeding the machines with lots of data. It is tested and trained through the machine learning models.
Now a days most of the companies are using this AI in their HRM process for reduce the workload
and reduce the manpower.
3.1. ROLE OF ATRIFICIAL INTELLIGENCE IN HRM
At present, the HR department heading towards digital revolution and it is using various method
to simplify the various resources by using big data analysis, cloud computing and artificial intelligence.
Amla & Malhotra, (2017) stated that most of the organization has been using the artificial intelligence
(AI) or digital technologies in HRM like machines learning, chatbot and robot process automation in
the human resource management (HRM) which is support in recruitment, screening, on boarding,
interviewing, training, etc.
3.1.1. RECRUITMENT
Most of the companies are using artificial intelligence system in their recruitment process. The
organizations such as Facebook, SAT, GE are using the digital technologies in the HR process such as
screening, interview, identify the talented for the recruitment process, training and appraisal process
in an organization. Through the AI recruitment process the manager can examine the application easily
and the candidate can get quick response from the employer. The automated answering machine plays
an essential role to solve the problems in the recruitment process of the organization.
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Vol. XXI, No.4, January – June : 2023, 80
3.1.2. REDUCE THE ADMINISTRATIVE BURDEN
Due to heavy workload most of the HRM are struggling to complete their task on time. So the
AI system can help the HR department to reduce the workload of the human capital as well as it will
help them to concentrate other managerial activities. In an organization the HR department have to
play multitasking roles where using the technologies and Artificial intelligence organizations tries to
reduce the workload. The Artificial intelligence provides solutions to such problems also it helps to
increase the efficiency of human resource in the organization.
3.1.3. INCREASE THE EFFICIENCY
Artificial Intelligence (AI) will helpful to reduce the redundancy of employees at their
workplace. Various robotic task has been carried out in the workplace to increase the efficiency of the
organization. Robotic task includes collecting data, copying data, filing reports, identifying the
required data from the available data, collecting and processing the data for HR department and payroll
systems etc. George and Thomas stated that the humans cannot be replaced by Artificial Intelligence.
Moreover, Vivek and Yawalka ascertained that how the Artificial Intelligence assists with workload
reduction and enriching the workplace efficacy.
4. CONCEPTUAL FRAME WORK
5. STATEMENT OF THE PROBLEM
The AI is benefit in the field of human resource management in future, the HR department need
to aware of the potential problems. A main challenge of integrating artificial intelligence into HR
functions is the mindset of employees. The universal nature of AI that enables to track the multiple
aspects of employees’ behaviour in a growing concern among the individuals. Thus, the concerns
relating to misuse AI and unethical and misappropriate usage of shared data need to addressed
properly. At present, firms need people that possess all the required skillsets. This reason is artificial
intelligence is used in every departments' operations, including the human resources. Because of lack
of technological skill the employees find it challenging to learn and integrate the new AI tools into
their roles. So that this study will helpful to the companies to identify the importance of AI systems in
human resource management decision making process.
6. OBJECTIVES
1. To analyze the concept of artificial intelligence.
2. To study the importance of artificial intelligence system HRM.
7. SCOPE OF THE STUDY
This research was undertaken by the researcher to assess the importance of artificial intelligence
system in human resource management in decision making process. This study will be useful to the
Artificial
Intelligence
OrganizationsHRM
SOUTH INDIA JOURNAL OF SOCIAL SCIENCES
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Vol. XXI, No.4, January – June : 2023, 81
organizations to understand the importance of AI in decision making and reduce the burden of
employees and HRM.
8. LIMITATIONS OF THE STUDY
 This study is concentrated only on AI in HRM.
 This period of study is very short.
9. HYPOTHESIS
H1: There is a significant influence on educational qualification of the respondents and AI
involvement in decision making.
H2: There is a significant relationship between age of the respondents and Artificial Intelligence
factors.
10. METHODOLOGY
Primary and secondary data has been used for this research. The sample size of this study is
95. The Cronbach‘s Alpha test is used to measure the internal consistency for validating the
questionnaires. Crosstab Analysis, Chi-square test, one-way ANOVA and post Hoc- Tukey HSD test
were adopted to analyze Artificial Intelligence factors.
11. ANALYSIS AND RESULTS
a. Reliability statistics
Table: 1 :Reliability Statistics
Reliability Statistics
Cronbach's
Alpha
N of
Items
.897 5
The researcher used Cronbach‘s Alpha test to measure the internal consistency for validate the
questionnaire. The Cronbach‘s Alpha Value is 0.897.
b. CROSS-TAB ANALYSIS
The educational qualification of the respondents and AI involvement in decision making and
manager’s desire to bypass AI solutions has been presented in the below crosstab table:
Table: 2 :Crosstab Analysis
Crosstab
Qualification Total
UG PG Other
AI involvement in
decision making and
manager’s desire to
bypass AI solutions
1 12 30 9 51
2 11 13 5 29
3 3 1 1 5
4 3 1 0 4
5 2 3 1 6
Total 31 48 16 95
The above crosstab table indicates that most of the highly satisfied respondents are belongs to
PG qualification group (3). The nature of association is tested in the following chi-square table.
c. CHI-SQUARE TESTS
Table: 3 :Chi-Square Tests
Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 7.939a
8 .439
Likelihood Ratio 8.280 8 .407
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Linear-by-Linear
Association
2.153 1 .142
N of Valid Cases 95
The Pearson Chi-square value of the above table is 7.939 at 5% level of significance. The P
value is more than 0.01. Hence the null hypothesis is accepted. It is found that the variable AI
involvement in decision making and manager’s desire to bypass AI solutions is not depend on the
educational qualification of the respondents.
d. ONE- WAY ANOVA
Table: 4 :ANOVA
ANOVA
Sum of
Squares
df Mean
Square
F Sig.
AI involvement in decision
making and manager’s desire
to bypass AI solutions
Between
Groups
18.304 3 6.101 5.365 .002
Within Groups 103.485 91 1.137
Total 121.789 94
Companies have clear vision
and clear understanding of AI
in decision making process
Between
Groups
2.204 3 .735 .526 .665
Within Groups 127.017 91 1.396
Total 129.221 94
The HRM use AI technologies
to maintain the balance among
job demand and professional
development
Between
Groups
16.089 3 5.363 6.110 .001
Within Groups 79.869 91 .878
Total 95.958 94
The company enhance the
awareness of positive impact
of AI on employees’
performance
Between
Groups
9.640 3 3.213 3.764 .013
Within Groups 77.686 91 .854
Total 87.326 94
Offering trainings program for
their employees and assigning
AI specialists
Between
Groups
9.640 3 3.213 3.764 .013
Within Groups 77.686 91 .854
Total 87.326 94
The P value of the variables such as AI involvement in decision making and manager’s desire
to bypass AI solutions, The HRM use AI technologies to maintain the balance among job demand and
professional development. The company enhance the awareness of positive impact of AI on
employees’ performance and Offering training program for their employees and assigning AI
specialists are less than 0.05 at 5% level of significance. Thus, Null hypothesis of the above variables
rejected at 5% level of significance. It is ascertained that there is a significant difference in AI
involvement in decision making and manager’s desire to bypass AI solutions, HRM use AI
technologies to maintain the balance among job demand and professional development, the company
enhance the awareness of positive impact of AI on employees’ performance and Offering trainings
program for their employees and assigning AI specialists and age of the respondents.
The P value of the variable companies have clear vision and clear understanding of AI in
decision making process is more than 0.05 at 5% level of significance. Hence, null hypothesis is
accepted at 5% level of significance. It is ascertained that there is no significant difference between
Companies have clear vision and clear understanding of AI in decision making process and age of the
respondents.
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POST HOC –TUKEY HSD TEST
Table: 7 :Post Hoc –Tukey Hsd Test
Multiple Comparisons
Tukey HSD
Dependent Variable Age Age Mean
Difference
Std.
Error
Sig. 95%
Confidence
Interval
Lower
Bound
Upper
Bound
AI involvement in
decision making and
manager’s desire to
bypass AI solutions
Less than 30
years
30 - 40 years .595 .336 .295 -.29 1.48
41 - 50 years .790*
.275 .026 .07 1.51
Above 50 years 1.241*
.324 .001 .39 2.09
30 - 40 years
Less than 30
years
-.595 .336 .295 -1.48 .29
41 - 50 years .195 .323 .931 -.65 1.04
Above 50 years .646 .366 .298 -.31 1.60
41 - 50 years
Less than 30
years
-.790*
.275 .026 -1.51 -.07
30 - 40 years -.195 .323 .931 -1.04 .65
Above 50 years .451 .311 .471 -.36 1.26
Above 50
years
Less than 30
years
-1.241*
.324 .001 -2.09 -.39
30 - 40 years -.646 .366 .298 -1.60 .31
41 - 50 years -.451 .311 .471 -1.26 .36
Companies have clear
vision and clear
understanding of AI
in decision making
process
Less than 30
years
30 - 40 years .245 .373 .912 -.73 1.22
41 - 50 years .341 .305 .678 -.46 1.14
Above 50 years .370 .359 .732 -.57 1.31
30 - 40 years
Less than 30
years
-.245 .373 .912 -1.22 .73
41 - 50 years .096 .358 .993 -.84 1.03
Above 50 years .125 .406 .990 -.94 1.19
41 - 50 years
Less than 30
years
-.341 .305 .678 -1.14 .46
30 - 40 years -.096 .358 .993 -1.03 .84
Above 50 years .029 .344 1.000 -.87 .93
Above 50
years
Less than 30
years
-.370 .359 .732 -1.31 .57
30 - 40 years -.125 .406 .990 -1.19 .94
41 - 50 years -.029 .344 1.000 -.93 .87
The HRM use AI
technologies to
maintain the balance
among job demand
and professional
development
Less than 30
years
30 - 40 years .757 .296 .057 -.02 1.53
41 - 50 years .797*
.241 .007 .17 1.43
Above 50 years 1.111*
.285 .001 .37 1.86
30 - 40 years
Less than 30
years
-.757 .296 .057 -1.53 .02
41 - 50 years .040 .284 .999 -.70 .78
Above 50 years .354 .322 .690 -.49 1.20
41 - 50 years
Less than 30
years
-.797*
.241 .007 -1.43 -.17
30 - 40 years -.040 .284 .999 -.78 .70
Above 50 years .314 .273 .660 -.40 1.03
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Vol. XXI, No.4, January – June : 2023, 84
Above 50
years
Less than 30
years
-1.111*
.285 .001 -1.86 -.37
30 - 40 years -.354 .322 .690 -1.20 .49
41 - 50 years -.314 .273 .660 -1.03 .40
The company
enhance the
awareness of positive
impact of AI on
employees’
performance
Less than 30
years
30 - 40 years .743 .292 .059 -.02 1.51
41 - 50 years .526 .238 .129 -.10 1.15
Above 50 years .833*
.281 .020 .10 1.57
30 - 40 years
Less than 30
years
-.743 .292 .059 -1.51 .02
41 - 50 years -.217 .280 .866 -.95 .52
Above 50 years .090 .317 .992 -.74 .92
41 - 50 years
Less than 30
years
-.526 .238 .129 -1.15 .10
30 - 40 years .217 .280 .866 -.52 .95
Above 50 years .307 .269 .666 -.40 1.01
Above 50
years
Less than 30
years
-.833*
.281 .020 -1.57 -.10
30 - 40 years -.090 .317 .992 -.92 .74
41 - 50 years -.307 .269 .666 -1.01 .40
Offering trainings
program for their
employees and
assigning AI
specialists
Less than 30
years
30 - 40 years .743 .292 .059 -.02 1.51
41 - 50 years .526 .238 .129 -.10 1.15
Above 50 years .833*
.281 .020 .10 1.57
30 - 40 years
Less than 30
years
-.743 .292 .059 -1.51 .02
41 - 50 years -.217 .280 .866 -.95 .52
Above 50 years .090 .317 .992 -.74 .92
41 - 50 years
Less than 30
years
-.526 .238 .129 -1.15 .10
30 - 40 years .217 .280 .866 -.52 .95
Above 50 years .307 .269 .666 -.40 1.01
Above 50
years
Less than 30
years
-.833*
.281 .020 -1.57 -.10
30 - 40 years -.090 .317 .992 -.92 .74
41 - 50 years -.307 .269 .666 -1.01 .40
*. The mean difference is significant at the 0.05 level.
The Post Hoc- Tukey HSD test is used to test the significant difference between groups based
mean difference. It was found that less than 30 years age group respondents have strongly agreed the
variables such as AI involvement in decision making and manager’s desire to bypass AI solutions,
companies have clear vision and clear understanding of AI in decision making process, company
enhance the awareness of positive impact of AI on employees’ performance, offering trainings
program for their employees and assigning AI specialists as compared with other age groups such as
30 – 40 years and 41 – 50 age group and above 50 age group respondents.
12. FINDINGS
 Due to heavy workload many of the HRM struggling to do the recruitment process. This study
will help to reduce the burden on administrative staff in the organizations.
 This research will helps in talent acquisition of HRM and identify the right candidates for the
right job.
 Artificial Intelligence helps to predict the rate of employee retention at the workplace.
 It will help to overcome the limitations of HRM in decision making process.
 The AI system in the HR department can help to maintain the workflow in various department.
SOUTH INDIA JOURNAL OF SOCIAL SCIENCES
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Vol. XXI, No.4, January – June : 2023, 85
 The Artificial intelligence will increase the employee engagement at the workplace and it
minimize the bias in decision making.
13. CONCLUSION
In this competitive era there is wonderful growth for industrial sector. The continuous
improvement in the management is one of the challenges in front of the organization. To enhance the
quickness and routine work most of the organizations adopting modern technologies. Most of the
experts and researcher recommending the organizations to make use of artificial intelligence tools and
digital technologies in the HR process. Artificial Intelligence has been used by many organizations in
the field of human resource management where Artificial Intelligence plays an integral role in
recruitment, selection, analyzing the performance, collecting data related with employees, providing
correct and accurate information to the management.
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its Impact on Human Resource Functions. International Conference on Computation,
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