Impact of artificial intelligence in human resource management: a path to frontier from now

In the ever-evolving digital landscape, businesses are venturing into the realm of artificial intelligence (AI), presenting both promise and challenges for human resource management (HRM). Despite its potential, there’s a noticeable gap between what AI can do and its current applications in HR. The looming threat lies in the necessity for upskilling to prevent job displacement. However, hurdles in implementing data science in HR persist, including the complexity of HR phenomena, constraints with small data sets, ethical concerns, and employee reactions to algorithmic management. This study lays the groundwork for AI in HRM, aiming to enhance operations while proposing practical solutions that emulate human intelligence, emphasizing causal reasoning, randomization, and process formalization for socially acceptable and economically effective employee management.