Application of AI on Human Resource Management: A Review

Purpose – The aim of this study is to understand how AI technology can be applied in the HRM sector based on the numerous studies. This paper reviews the application of artificial intelligence in human resource management based on the 6 basic dimensions of HRM theory. Design/methodology/approach – This study employs the narrative methodology for the literature review. We have intentionally avoided the systematic methodology for the literature review, as the methodology requires specific research questions which we believe is beyond the scope of the study. Findings: The paper comes out with a conclusion that AI strongly and positively effects 4 dimensions of HRM theory: recruitment, training and development of employees, managing employee performance and evaluating salaries of employees whereas the other two dimensions (human resource strategies and employee relationship management) are still in the experimental stage. Though AI is highly accepted, the challenges they face in identifying data, creating unbiased data, working on employee happiness cannot be ignored. Originality: Extra research we have done showed that in HR they use different applications of AI; for example, government departments use the Oracle program in recruitment. Furthermore, the paper has underpinned some worth mentioning literature gaps which open a vast scope of further research. We believe addressing the gaps will help the industry to move towards the right direction for adopting AI technology in the HRM sector.