Artificial Intelligence in Human Resources Management: Challenges and a Path Forward

29 Pages Posted: 1 Nov 2018

See all articles by Peter Cappelli

Peter Cappelli

University of Pennsylvania Wharton School - Center for Human Resources; National Bureau of Economic Research (NBER); University of Pennsylvania - Management Department

Prasanna Tambe

Wharton School, U. Pennsylvania

Valery Yakubovich

ESSEC Business School

Date Written: October 7, 2018

Abstract

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

Suggested Citation

Cappelli, Peter and Tambe, Prasanna and Yakubovich, Valery, Artificial Intelligence in Human Resources Management: Challenges and a Path Forward (October 7, 2018). Available at SSRN: https://ssrn.com/abstract=3263878 or http://dx.doi.org/10.2139/ssrn.3263878

Peter Cappelli

University of Pennsylvania Wharton School - Center for Human Resources ( email )

3733 Spruce Street, Vance Hall
Philadelphia, PA 19104-6358
United States

HOME PAGE: http://www.wharton.upenn.edu/faculty/cappelli.html

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States

Prasanna Tambe

Wharton School, U. Pennsylvania ( email )

Philadelphia, PA 19104
United States

Valery Yakubovich (Contact Author)

ESSEC Business School ( email )

France

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