The Implications of Artificial Intelligence Integration in Human Resource Management for Job Security and Workforce Transformation

Abstract

The introduction of Artificial Intelligence (AI) is transforming the Human Resource Management (HRM) landscape, automating and improving traditional HR activities and improving the overall effectiveness of organizations. These benefits are there, yet there are worries over job security for staff and the general reordering of the labor force because of the introduction of AI. The study discusses implications of AI implementation in HRM for job security and workforce transformation, and the companies which have implemented AI in HR functions. The study is of the quantitative and cross sectional type of research with the guidance of two theories namely Technology Acceptance Model (TAM) and Social Exchange Theory (SET). Data were collected from 372 employees by providing a structured questionnaire and analyzed using the software of Partial Least Squares Structural Equation Modeling (PLS-SEM) version 4 from the SmartPLS company. The findings show that job security (β = 0.521, p < 0.001) and workforce transformation (β = 0.604, p < 0.001) are significant positive consequences of the implementation of AI. Furthermore, there is also a positive relationship between job security and workforce transformation (β = 0.287, p < 0.001): When employees are more secure with their jobs, they have increased acceptance of technological change and are more inclined to learn new skills. The findings indicate that AI should be used in tandem with clear communication, training, and up-skilling strategies to be used in conjunction with human abilities. The study's findings should be valuable to practitioners and policymakers working in human resource management in developing countries, as it provides insights into how AI can be leveraged for human-centric HRM strategies to boost organizational performance and employee well-being.