Is it necessary? A framework for assessing the utility of A.I. in HRM practices

Area of Science:

• Business and Management
• Information Systems

Background:

• The perceived value of Artificial Intelligence (AI) in Human Resource Management (HRM) often exceeds its demonstrated utility.
• A gap exists between the anticipated benefits of AI in HRM and its practical application.

Purpose of the Study:

• To develop a framework for assessing the suitability and adoption of AI-based tools in specific HRM processes.
• To analyze the value-addition and strategic capability-building potential of AI in HRM.

Main Methods:

• Utilizing transaction cost and resource-based views to construct an analytical framework.
• Reviewing current AI in HRM literature.
• Applying the framework to key HRM processes: recruitment, performance management, training, and compensation.

Main Results:

• AI tools enhance value through operational streamlining and task automation.
• The transaction cost view helps evaluate AI-driven value creation.
• The resource-based view elucidates AI's role in developing strategic HR capabilities.

Conclusions:

• The proposed framework offers a roadmap for strategic AI adoption in HRM.
• AI integration can lead to smoother HR processes and enhanced strategic capabilities.
• Further research is needed on emerging issues for practitioners and scholars.