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AI and Its Application in HRM

With the increasing digitalization of organizations, HRM faces challenges related to two aspects: 1) “digitalizing the process of HRM”; 2) “supporting general digital transformation through the change processes and competence development needed for companies’ viable competitiveness” [1].

AI brings the opportunity for companies to increase efficiency and enhance employee satisfaction. However, it is critical that the technology is accepted by the team members within the organization and a learning journey is developed to ensure the successful adoption of technology.

Technology acceptance can be encouraged if the employees including HR managers and line managers perceive it as useful and easy to use [2]. There is often resistance to change, especially when it is not communicated clearly from the start how the introduction of new technology will affect the job roles.

Research conducted in 2021 [3] analyzed public attitudes towards the use of AI / Robots across 28 European countries and revealed that participants were very frightened by the potential threat of job loss due to AI adoption.

While there is a lot of fear around new technology, N. Böhmer and H. Schinnenburg explain that companies choosing to adopt AI tools can gain a strong competitive advantage since the capabilities that develop as a result of the learning process are not easy to replicate,

“Building up an AI-driven HRM architecture includes a transformation process, leading to organizational learning instead of competencies bound to a single person. Therefore, these capabilities – and the information and knowledge that derives from them – can be controlled by the organization and may be difficult for competitors to imitate.” [1]

A recent study conducted in Australia [4] examined how well HRM professionals are prepared to lead the way within organizations adopting the Fourth Industrial Revolution (FIR) technologies such as AI, robotics, and machine learning. The findings are summarised as follows,

“…while most believe that FIR technologies might be useful for their organisations and assist with improving job performance, increasing productivity and making jobs easier for employees, contrarily many did not intend to use them in the foreseeable future” [ibid].

Therefore, the study shows that there is a lack of AI adoption in Australian organizations. HRM professionals often do not receive sufficient training to understand how FIR technologies can be used to work in a smarter way.

It can be argued that a part of the problem is that the current AI tools offered to HRM professionals are or are perceived as very complex. To address this problem, HRCOFFEE developed a user-friendly PA tool called “Splash” that helps to visualize important HR data, interpret it, and perform detailed reporting with just a click using ChatGPT technology.

AI technology, if used responsibly, can bring great benefits to organizations. The process of its adoption, however, is a process of change that implies a learning journey. In this context, HRM professionals are presented with a challenge to further enrich their competencies, playing both roles – the role of a trainee and the role of a mentor, being at the forefront of the transformation process.


[1] “Critical Exploration of AI-driven HRM to Build up Organizational Capabilities” (2023) N. Böhmer and H. Schinnenburg, Employee Relations: The International Journal, vol. ahead of print.

[2] “User acceptance of computer technology: a comparison of two theoretical models” (1989) F.D. Davis, R.P. Bagozzi and P.R. Warshaw, Management Science, Vol. 35 No. 8, 982-1003 pp.

[3] “Effects of country and individual factors on public acceptance of artificial intelligence and robotics technologies: a multilevel SEM analysis of 28-country survey data” (2021) H.T. Vu, J. Lim, Behaviour & Information Technology, vol. 41: 1515 – 1528 pp.

[4] “‘Are we there yet?’ Australian HR professionals and the Fourth Industrial Revolution” (2019) A. NankervisJ. ConnellR. CameronA. MontagueV. Prikshat, Asia Pacific Journal of Human Resources, vol. 51 (1), 3-19 pp. [Available at link]

*This article is an original work of Luiza Gaysina

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