Introduction to AI in the Workplace

The Fourth Industrial Revolution (4IR) is all about the rise of advanced technologies like
AI, big data, machine learning, mobile tech, the Internet of Things, geo-tagging, virtual
reality, speech recognition, and biometrics. These technologies are transforming how
businesses operate globally, changing the way work is designed and carried out.

While there are concerns about AI causing job losses, it also offers many benefits. AI
can improve service quality, boost productivity, enhance customer engagement and
loyalty, and reduce costs. It can also positively impact individual employees by
improving their job satisfaction and experiences.

AI refers to technologies that allow computers to perform tasks requiring human-like

thinking and decision-making. There's ongoing research to understand how AI can
benefit businesses, especially in Human Resource Management (HRM). However,
there’s still a lot to learn about how AI can make HR processes more effective and
linked to other business operations.

Despite limited knowledge, it's clear that AI and automation technologies provide
significant advantages for HRM in both local and multinational enterprises.

How AI Helps in HR

1.​ Recruitment and Selection: AI helps in planning future employee needs and making
smart hiring decisions. It speeds up the hiring process, handles large amounts of data,
and helps identify the best job candidates. AI can also improve job interviews, moving
from face-to-face to online formats.
2.​ Training and Development: AI helps track employee skills and create effective training
programs. It can save and use electronic resumes to find the right candidates within an
organization. AI systems also help employees identify their training needs and complete
courses.
3.​ Compensation and Benefits: AI automates payroll and tracks employee data, making it
easier to manage salaries and benefits. It helps HR professionals collect relevant
information and make informed decisions about compensation.
4.​ Performance Management: AI tools help evaluate employee performance fairly. They
assist managers in identifying areas for improvement and making decisions about
training and development.
5.​ Challenges: There are challenges in implementing AI, such as transparency in how
decisions are made and ensuring that employees understand and accept these
decisions. Limited research is available on reducing negative impacts of AI in HR.
 6.​ Ethical and Legal Issues: Employees need to know what data is collected about them
and how AI-based decisions affect their outcomes. Clear communication and
transparency are essential to ensure trust and reliability in AI systems.

Moving Forward

1.​ Improving Communication: Effective communication between managers and

employees can enhance the impact of AI-enabled HR functions.
2.​ Feedback Loop: A feedback loop is needed for learning and innovation in
organizations, helping to minimize negative consequences of AI applications.

In summary, AI can greatly improve HR functions by making processes more efficient and fair.
However, it is essential to address implementation challenges and ensure transparency and
clear communication to build trust and maximize benefits.

How AI in HRM Affects Business and Employees

1.​ Positive Individual Outcomes:

○​ AI in HR can boost job satisfaction, commitment, engagement, and performance.
○​ Employees can use AI to set realistic job expectations and improve their skills
and training.
○​ AI can take over routine tasks, freeing up employees' time.
2.​ Positive Business Outcomes:
○​ AI leads to productivity gains, cost reduction, and operational efficiencies.
○​ Businesses see improved customer engagement and loyalty.
○​ AI provides cost-effective service excellence, as seen in companies like Amazon
and Singapore Airlines.
○​ New technologies like AI, big data, and the Internet of Things bring opportunities
for service innovation.
3.​ Negative Individual Outcomes:
○​ AI can lead to job insecurity, high turnover, increased stress, and negative
attitudes.
○​ Employees' well-being might be affected by interaction with AI.
4.​ Negative Business Outcomes:
○​ Improper use of AI can result in high employee turnover.
○​ AI might not be a long-term competitive advantage in highly emotional or
complex tasks.
5.​ System-Level Challenges:
○​ AI adoption might lead to employee job insecurity and increased turnover
intentions.
○​ Fear of technology can hinder successful adoption.
○​ Proper training and organizational culture are needed to reduce fear and
successfully implement AI.
In summary, AI in HRM can bring both positive and negative outcomes for employees and
businesses. Proper implementation and training are crucial to maximize benefits and minimize
negative impacts.

How AI and Humans Work Together

1.​ Digital Co-Workers:

○​ AI technologies, like chatbots and voice assistants, help with tasks that require
logical decision-making and cognition.
○​ There's a growing interest in how humans and AI work together, especially in
customer service roles.
2.​ Job Replacement and Skills:
○​ AI can speed up specific tasks but may also replace some human jobs.
○​ To stay relevant, employees should develop intuitive and empathetic skills that AI
lacks.
○​ AI can handle analytical tasks, saving humans time and resources.
3.​ Human-AI Collaboration:
○​ It's important to study which tasks AI can do best and what skills employees need
to work with AI.
○​ Employees should learn new skills, like emotional intelligence and innovation, to
work effectively with AI.
○​ AI should complement, not compete with, human capabilities.
4.​ Re-Skilling and Training:
○​ Workers need to re-skill and adapt to use AI technologies effectively.
○​ Specific skills needed depend on the type of AI used at work.
○​ Collaboration between humans and AI can lead to better business outcomes.

In summary, AI and humans can work together to improve efficiency and performance.
Employees should focus on developing skills that AI lacks to stay valuable in the workplace.
Proper training and collaboration are key to maximizing the benefits of AI in the workplace.

Ethical and Legal Challenges of AI in HR

1.​ Ethical Issues:

○​ Bias: AI in hiring has shown biases against women and people of color.
○​ Fairness: AI decisions can sometimes be unfair and lack human judgement.
○​ Accountability: Determining responsibility for AI decisions is challenging.
○​ Trust: Building trust in AI involves transparency and reliability.
2.​ Trust in AI:
○​ People need to trust AI to work with it effectively.
○​ Trust depends on AI's transparency, reliability, and how well it mimics human
behavior.
3.​ Regulation and Ethics:
 ○​ Legal Issues: New laws are needed to manage AI's impact on jobs and personal
data.
○​ Fairness: AI should be designed to support fairness and ethics in the workplace.
○​ GDPR: The Global Data Protection Regulation (GDPR) helps protect personal
data but is complex to enforce globally.
4.​ Need for Guidelines:
○​ Transparent, ethical guidelines are necessary to ensure AI benefits both
employees and organizations.
○​ Clear rules help minimize negative impacts and build trust in AI.

In summary, using AI in HR comes with ethical and legal challenges, including bias, fairness,
and trust issues. Transparent guidelines and regulations are essential to address these
challenges and ensure AI is used responsibly.

Summary of Research on AI in International HRM

This section introduces cutting-edge research on the challenges and opportunities of AI in

international HRM. From 25 submitted manuscripts, six studies were selected after rigorous
review. These studies cover various aspects of AI's impact on HRM, using data from different
countries and companies.

1.​ Service Robots and Productivity:

○​ Examines the impact of robots on workplace productivity.
○​ Highlights the role of leaders in managing the transition to automation.
2.​ AI in Recruitment:
○​ Analyzes the enablers and barriers of AI adoption in recruitment.
○​ Uses data from 297 Chinese firms.
3.​ AI Applications in HR:
○​ Case study of a global IT consulting firm and its AI applications in HR.
○​ Shows how AI improves HR processes and employee satisfaction.
4.​ Upskilling for AI:
○​ Focuses on the need for employees to learn new skills to work with AI.
○​ Uses data from multinational companies.
5.​ Change Readiness for AI:
○​ Examines HR managers' readiness to adopt AI.
○​ Analyzes data from 417 HR managers in China.
6.​ Systematic Review:
○​ Reviews 45 articles on intelligent automation in HRM.
○​ Discusses themes like recruitment, training, job performance, and human-bot
interactions.

These studies offer insights into how AI can enhance HRM functions, improve employee and
organizational outcomes, and highlight the need for upskilling and ethical considerations in AI
adoption.
Concluding Remarks

This review and the articles in this special issue aim to enhance knowledge about AI in
international HRM. By analyzing the past ten years of research, we highlight the key drivers and
consequences of AI adoption in HRM and identify areas for future research.

1.​ Expanding Knowledge:

○​ We extend our understanding of how AI and intelligent technologies impact HRM.
○​ This field is emerging and needs further exploration through robust research.
2.​ Key Themes:
○​ We identified four key themes and developed propositions for future studies.
3.​ Theoretical Framework:
○​ Our framework explains the relationships between different constructs and
suggests new areas for research.

Overall, this review contributes to the literature and helps business organizations and HR
professionals adapt to technological advancements, gaining competitive advantages.