Challenges and Path Ahead for Artificial Intelligence-aided Human Resource Management

Abstract Introduction: The application of artificial intelligence (AI) can substantially enhance both short- and long-term decision-making in human resource management (HRM) practices. However, academic research fails to address the dark side of AI in confluence with HRM and primarily paints a bright picture of the advantages of AI. Purpose: The current research emphasises the challenges faced in the HRM domain in applying AI in HRM practices and further discusses the future path to maximise the effect of AI on HRM. Methodology: The study rigorously surveyed secondary sources like the journal papers, consultant reports and other databases to critically examine the challenges encountered in applying AI in HRM practices. Findings: Analysis of the above-mentioned sources shows that AI algorithm might bring routinisation of work. HRM ethics, data safety and integrity, biased algorithm from the programmer, fewer data to train the AI model, lack of technical skills of HR executive, neglecting values, and ignoring the creative thinking by employees are a few aspects that might cause difficulty in the adaptation of AI in the HRM domain. As a consequence, there could be unnecessary extra monitoring of employee behaviour, which in turn could lead to loss of workplace well-being and trimming of the human element in HRM. Practical Implications: This study adds value by focusing on the challenges and suggests the path for robust HRM practices; because, the biased decision-making by AI could potentially lead to improper decision-making by the top management, and in turn, the sustainability of a firm could be at stake.