Volume 9, Issue 12, December – 2024 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165 https://doi.org/10.5281/zenodo.14603611

Artificial Intelligence in Human Resource

Management: Opportunities, Risks, and Ethical
Implications in the Indian Context
Manjima Mathur1; Anshumali Pandey2
1
Research Scholar, 2Professor
Department of Commerce & Management, Sabarmati University

Abstract:- The development of Artificial Intelligence and processes of organizations in India. Through conducting the
automation has done a lot of change to some sectors, and current state analysis of AI and automation integration in
the Human Resource Management sector is not an Indian HRM, defining key trends, and assessing their impact
exception. The following paper discusses how AI affects on specific HRM functions, this research invokes
various areas of human resource management, such as contribution to the improvement of the field for the Indian
staffing, employee handling, and decision making in the professionals, businessmen, and policymakers. Therefore, the
organization (Arslan et al., 2021) (Kshetri, 2021) (Saxena, importance of this study resides in the possibilities of
2020). Evidence from previous literature indicates that providing a research-based foundation that could be useful
there are benefits of implementing AI in the HR for making strategic management decisions within the sphere
department for optimizing the use of processes/k of HRM, the formulation of pertinent policies, and feeding
workforce experience and overall performance (Saxena, into the debate regarding the future of work in India. With the
2020)( Arslan et al., 2021). The variables expounded in the country seeking to attain high flyer economy earlier identified
paper include the identification of AI in the Indian context in the political, social and economic environments, it is
of Human resource management that include; elimination important that the effects of AI and automation in the strategic
of Bias in recruiting, Personalized learning and management of human resources is understood for the
Development, and Data driven decision making. Further, improved sustainability of HRM.
the paper provides the analyses of the opportunity and
risk of AI in HRM and the ethical issue such as job loss, This paper aims to review the current literature on
privacy, and transparency. Therefore, the results of this effects of AI and automation in various subfields of HRM, to
paper can help HR professionals and organisations to establish literature gaps, and to propose future research
understand how and when to embed AI technologies in avenues.
their human resource management strategies for success.
II. LITERATURE REVIEW
Keywords:- AI, HRM, Automation, Business, Policies,
Technologies, Learning, Development. The adoption of AI and automation across multiple
industries has led to a vast array of studies as to the impact of
I. INTRODUCTION AI on work relations, organizational outputs and employee
relations. These, therefore, have interesting implications in a
The future is here and fast growing due to AI and developing country like India with a diverse work force. This
automation in the areas of business worldwide Human literature review, therefore, consolidates current and previous
Resource Management is not exempted. Technological findings, examines the research gaps, and proposes future
advances have made it necessary for HR practice to be research directions to future explore the effects of AI and
redesigned since these tools improve conventional practice automation on HRM in the Indian context.
and provide better timely and accurate solutions. Discussing
HRM in India where the economy is developing, the IT  AI and Automation: Economic Effects
industry particularly rapidly, AI & automation in the analyzed This paper builds on Acemoglu and Restrepo (2018), to
field have the potential and risks. The nature of HRM across introduce the dual impact of automation and AI in labor
organizations in India involves a pluralistic workforce, markets. They found a crowding out effect that reduces
differential usage of technology, and a stringent set of demand for labor and wages alongside a powerful work effect
regulatory standards. Due to competitive pressure in the that makes demand for labor stronger in non-automated
global market, AI and automation find their ways in activities. This/scenario hence puts emphasis on the need of
organizations and are incorporated in the HR processes. developing new labor-intensive positions so as to mitigate the
These technologies have the prospect of solving some detriments resulting from automation. This conclusion is
perennial problems of Indian HRM like talent sourcing and identical to that reached by Vermeulen et al. (2018) who
engagement and performance in a new way though they also argued that though automation eliminated employment
present new issues. Therefore, the focus of this research paper opportunities, it recreates that scenario by creating new labor-
is to explore the unique effects of AI and automation on HRM

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Volume 9, Issue 12, December – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.5281/zenodo.14603611
intensive industries suggesting that employment adjustments Okolo et al. (2021) pointed out that understanding CHW’s
are constantly in a dynamic process of change. attitude toward the use of AI applications is beneficial to fill
this gap to support integration, which underlines the necessity
 Opportunities and Challenges in HRM to develop HRM approaches that meet the employees’
Intelligent automation technologies’ emergence brings concerns and promote acceptance of AI applications. In
two-sides to work with and face in the context of HRM. addition, based on the literature review, Dratsch et al. (2023)
Vrontis et al., 2021 opined these technologies can highlighted that innovation in healthcare organizations must
revolutionize the SHRM practices, enhance communication be driven by HRM practices, as well as the fact that
and decision making for and also pose threats to job contextual ambidexterity is needed to meet a firm’s dual
displacement. This dualism means that for HRM in the mandate for stability and change.
current context it is appropriate to stress learning
opportunities and ways for flexibility in the workforce. Over the course of the last decade, HRM in India has
Further, Budhwar et al. (2022) also pointed out that the AI experienced a massive wave of change triggers primarily
applications are redesigning work organization; it opens from the implementation of AI and automated systems. As
greater possibilities to organizational employee resource more organizations are embracing the potential benefits that
management. can be offered by artificial intelligence, decision making
tools, and new methods of streamlining work, the HR
In a similar pattern, Wang and Siau (2019) pointed out departments are very much at the leading edge of this process.
to the need for preventative management in managing the In the context of this paper, AI and automation in the area of
societal and work world shifts brought about by the fairly fast HRM denote an enormous variety of processes and functions
evolution of AI and automation. Indeed, it is equally an that include but are not limited to recruitment, employee
effective preventative measure against possible detriments engagement, payment and reward, performance assessment,
that may affect employees’ engagement, and organizational and training and personal development. This shift does not
culture. only aim at the right branding and utilization of human assets
but is accompanied by certain complexities including
 Enhancing Productivity and Employee Experience workforce desk, ethical concerns and so on. Thus, knowledge
AI technologies have shown an ability of improving of the effects of AI and automation within the field of HRM
organizational performance and satisfying employees. is crucial for organizations which wish to maintain their
Wamba-Taguimdje et al. (2020) revealed that application of competitiveness in the constantly changing business
AI in HRM enhances the performance in firm level. environment.
Furthermore, Malik and others (2020) opined that AI assisted
HRM applications, it has been proved that cost efficiency and By doing so, it is possible to identify the general impact
employees’ satisfaction grow and leads to higher level of of such technologies and to understand how they affect the
organizational commitment. Such a trend is especially current and potential, HR practices in Indian organizations as
relevant when addressing the issue of India’s striking and well as the experiences that employees have at their
progressive skill mix. In the study by Noy and Zhang (2023) workplace and the organizational cultures within which they
supported the fact that with the help of AI tools like ChatGPT, are immersed. Furthermore, we will explore the tactical move
productivity in writing tasks at the workplace and therefore needed from the HR leaders to unlock the opportunity while
inequality for worker productivity can be minimized. This managing risk to ensure the future of the workforce does not
implies that information technology especially AI can become fully automated in the age of intelligent machines.
balance the workforce capabilities whilst improving on the Knowledge about the social impacts of change induced by AI
Human resource management strategies in the attempt to and automation is the key not only to organizational
include and accommodate diversity. effectiveness but also to creating and building a capable
workforce for new paradigms. One of the key trends will be
 The Role of Learning Organizations the changes in recruitment that are already on the way: the AI
The analysis also shows that learning organizations play will help to minimize the unwanted unconscious biases as
a critical role in building employee resilience and motivation. well as to automate the process of the identification of
The authors Malik and Garg, 2020, further showed that candidates, screening and selection. However, the
creating a learning organization can increase work dependency on such systems prevents the human approach in
engagement with major effects in a world dominated by AI selecting the candidates, and the overemphasized usage of the
and automation. Regarding this, the current study validated algorithm can significantly affect the diverse and dynamic
previous findings by Cooke and Saini (2010): the difficulty demographics in the pool of applicants.
of managing the workforce diversity in India is apparent, and
therefore, more detailed tactical approaches in the field of However, perhaps even more important has been the
HRM should be based on the application of artificial employee engagement that has emerged as an important
intelligence. factor in retaining employees with the help of AI innovations
in areas such as employee feedback, career development and
 Addressing Unique Challenges in Healthcare real time pulse surveys which help in get the overall
There are specific trends in the HRM practice in the mood/vibe of the group. It does this not only for the
context of the healthcare sector in India and the crucial shifts enrichment of the experience of the employees, but also for
in this industry related to the use of AI in service delivery. growing a culture of positive change within the company.

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Volume 9, Issue 12, December – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.5281/zenodo.14603611
However, the issue of ethics in issues such as privacy and data Therefore, this harmonious environment shall enhance
protection should not be totally avoided in order to ensure that innovation and efficiency in the tentative use of the talents.
there is full reliability between employees and employers. As such, a diverse-oriented approach to the AI development
teams will only help improve the applicability of this
Some contributors have noted that currently, technology and avoid stereotypical pre-programming.
performance evaluation systems that are primarily dependent
on appraisal which is periodically conducted are rapidly Still, the possibility to adopt AI and automation in
evolving due to AI, which provides constant evaluation and human resource management has a lot of potential that, at the
key outcome to aid performance management. This dynamic same time, has certain challenges that should be given much
capability speaks high hopes of integrating individual attention. Although proponents of technologically driven
ambitions with global objectives of an organization but solutions often assure that they enhance human endeavors,
entails the risky expectation that an HR professional opponents claim that such approaches ultimately undermine
interpreting data is capable enough to create meaningful the human capital in today’s workforce. Given that there is a
patterns of business and personnel, a kind of analysis that rapidly growing interest in AI systems to handle activities
should never let quantitative scrutiny replace human feeling typically carried out by human employees, like recruitment
on the job. mandatory for skills upgrading in this fast- and performance assessment, it is possible to come across
changing environment plays are also undergoing a organizational decision-making approaches that disregard the
transformation through AI/automation. human factor that is critical to engage and motivate
employees.
With e-learning enabled by Intelligent algorithms,
corporate training and development can map the learning However, the use of artificial intelligence in
needs of the employees and the desired growth trajectory management of the hiring processes lead to the reinforcement
which the employee wishes to achieve; therefore, the of biases as opposed to eradicating them. This is because,
corporate mindset within the workforce can be gradually despite attempts geared towards defining the ethical standards
trained to embrace growth. However, organizations must also for AI utilization, the discussed algorithms reflect the quality
recall the need for the combination of soft skills training of the data sets that feed the formulas. Originating from prior
besides other technical enhancement exercises necessary for real-world prejudices, such prejudices may be replicated in
preparing employees for roles complex enough to require the statistics and feed into the AI to repeat a similar detriment
interaction with human beings and contain problem-solving to certain people of color, gender, or economic status. This
heft that cannot be outsourced to artificial intelligence. equals the permanent damage of reputation as an
organization, and loss of trust in the company among the
With these changes in mind, what is evident is that the employees, and therefore the formation of malignant
blend of AI and HRM in India is less a mere change of organizational culture.
technology; rather, it is a revolution of organizational
epistemology on how people capital is viewed. Thus, the way Also, the idea of impressing this feedback continuum is
ahead requires the systematic Optimization of the human attractive though it could be far from this ideal system.
resource management practices, where leaders do not only Workers might not be willing to give candid feedback on AI
conform to technological change, but also ensure the tools because they might be afraid, for example, that their
organization can embrace positive change in the form of an responses will be traced by an AI system or that the
inclusive culture, as well as ethical, learning, and adaptable information that they provide will be used later against them
culture. This way of working will help organizations foster when it comes to pays or promotions. This concern could
the future state of work where AI and automation will limit the free flow of information and would go against the
supplement rather than replace human employees in grain of the very flexibility organizations look to have with
organizations, as they seek to realize the pinnacle of AI solutions.
organizational performance.
Moreover, the drive for cooperation between the human
Organizations need also to implement efficient models being and the machines could obscure important problems of
for ethical deployment of AI in hiring and performance employment. Over time, it is conceivable that many of these
management to avoid discrimination. In the future, the roles could become automated in one way or another,
achievement of the integration of AI in the field of HRM will possibly resulting in a great deal of worker displacement. This
require innovation and technology alongside an potential needs to be presented alongside the potential
understanding of human processes as well as the support of negative implications of AI and this is especially important
the organizational culture promoting effectiveness and when thinking of India where existing economic inequalities
employee empathy. These and other such practices help are huge and huge parts of the population have to depend on
organizations increase the level of trust by their employees, their job.
when using AI technologies and solutions in performing their
work. These synergies will help to enhance the quality of  Knowledge Gaps and Future Research Directions:
decisions made and the consequent levels of production. Though the role of AI and automation plans for
employment for India has been explored in earlier literature
Further, continuous feedback will ensure that the AI analytics yet there is limited knowledge about the long-
tools are optimally relevant to its users within companies.

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Volume 9, Issue 12, December – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.5281/zenodo.14603611
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