Redefining HRM in the Age of AI: From Human Capital to Human Experience

Abstract

The paper explains how Human Resource Management (HRM) as the human capital approach has transformed to be a more holistic approach of human experience in the age of Artificial Intelligence (AI). Even though in the earlier models of HRM, the emphasis was more on how workers are strategic assets to productivity and financial success, with the rapid rate of AI-driven technology integration, the dynamics of company-company interaction, operations, and support of workers are evolving. The paper shows the impact of AI-based tools in the areas of recruiting, performance management, developing and engaging employees, including predictive hiring, smart automation and individual employee portals.

The study is empirical and conceptual and reviews the literature and new practices in organizations to understand the shift to experience HRM. The study states that the employees' expectations have changed and they now concern with well-being, meaningfulness, continuous learning and personalised workplace experiences. The AI is a double-edged driver of this transformation: it improves efficiency and productivity and enables designing experiences for employees using data. But the paper also notes the most serious issues, such as ethical issues, data privacy and algorithmic bias and dehumanisation of technology mediated workplaces.

The study also reveals that firms with a combination of AI and human-focused approach are likely to have higher level of job satisfaction, engagement and firm's performance. The paper has made a suggestion for redefining HRM which would be a combination of technological advancement and human relations, diversity and ethical considerations. The paper recommends that the future of HRM does not just mean capitalizing human capital, but delivering enriching human experiences, in which technology is a facilitator but not a replacement of human value.