Artificial Intelligence in Human Resources Management: Challenges and a Path Forward
29 Pages Posted: 1 Nov 2018
Date Written: October 7, 2018
We consider the gap between the promise and reality of AI in human resource management and suggest how progress might be made. We identify four challenges in using data science techniques in HR practices: 1) complexity of HR phenomena, 2) constraints imposed by small data sets, 3) ethical questions associated with fairness and legal constraints, and 4) employee reaction to AI-management. We propose practical responses to these challenges and converge on three overlapping principles--causal reasoning, randomization, and process formalization — that can potentially lead to both economically efficient and socially appropriate AI-management of human resources.
Keywords: artificial intelligence, human resource management, algorithmic management, big data, machine learning, data science
JEL Classification: C55, C63, J00, M12
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