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First published online August 2, 2019

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

Abstract

There is a substantial gap between the promise and reality of artificial intelligence in human resource (HR) management. This article identifies four challenges in using data science techniques for HR tasks: complexity of HR phenomena, constraints imposed by small data sets, accountability questions associated with fairness and other ethical and legal constraints, and possible adverse employee reactions to management decisions via data-based algorithms. It then proposes practical responses to these challenges based on three overlapping principles—causal reasoning, randomization and experiments, and employee contribution—that would be both economically efficient and socially appropriate for using data science in the management of employees.

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Biographies

Prasanna Tambe is a professor at the Wharton School (email: [email protected]).
Peter Cappelli is a professor at the Wharton School and a research associate at the NBER (email: [email protected]).
Valery Yakubovich is a professor at ESSEC (email: [email protected]).

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Published In

Article first published online: August 2, 2019
Issue published: August 2019

Keywords

  1. data analysis
  2. human capital
  3. human resource ethics
  4. hiring and recruitment
  5. information systems
  6. decision-making tools

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© The Regents of the University of California 2019.
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History

Issue published: August 2019
Published online: August 2, 2019

Authors

Affiliations

Prasanna Tambe
Wharton School, Philadelphia, PA, USA
Peter Cappelli
Wharton School, Philadelphia, PA, USA
The National Bureau of Economic Research, Cambridge, MA, USA
Valery Yakubovich
ESSEC Business School, Cergy, France

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