Abstract

Artificial Intelligence (AI) has opened up tremendous opportunities in the workplace through robotics innovation, which envelops both AI and the Internet of Things (IoT). Precision, Efficiency, and Flexibility are considered the potential benefits of Industry 4.0. The implementation of Industry 4.0 requires a lot of changes, including the Human Resource (HR) function. In Industry 4.0, the HR capability is more critical and gives an upper hand to the organization. The HR capability should be more cautious and adaptable to adjust to the difficulties and requirements. We study the contributions of AI in HR digitalization and practices in Industry 4.0. 271 HR experts working in Information Technology (IT), Manufacturing, and administration are selected to participate in this review focusing on five AI applications in HR capability and three elements of HR readiness. The information collected was examined utilizing the Statistical Package for Social Sciences (SPSS) tool and Analysis of Moment Structures (AMOS). The results uncovered that hierarchical organization examination is a fundamental part of acquiring sustainable development. Adaptability and human asset capability are upheld by each of the five components of AI application areas of HR. Well-being and Safety improvement were viewed as vital components under the AI application in HR.

Introduction

In the era of Industry 4.0, the Human Resource (HR) function plays a critical role in bridging the gap between technology and human resources. Although technology is taking over most of the tasks traditionally performed by human resources, there is still a growing need for flexible HR functions to address the challenges of managing people. To achieve this flexibility, technology can help bring agility to the HR process. Agility, which is the ability to move quickly and smoothly, is not a new concept and has been adopted by major companies such as Google, Apple, Facebook, Amazon, and Microsoft. In the context of HR, agility means the ability to adapt and develop individuals and processes in response to rapid and unpredictable changes, to support people, key strategies, and organizational adaptability [1,2]. As an HR or Learning and Development (LandD) professional, being agile means being able to drive employee engagement and retention in alignment with the company’s overall objectives. HR Agility is particularly suitable for volatile HR functions where standardization of functions is difficult [3,4].

Conclusion, limitations and scope for future study

Carrying out AI in HRM gives numerous benefits to the HR department and employees. However, those advantages accompany a few network safety dangers and lawful concerns. Assembling more worker information implies expanded protection concerns, and more gadgets accompany more noteworthy prospects of network safety assaults. Before executing AI for HR the board, organizations need to ensure that their workers’ information is not undermined. Associations likewise need to fabricate information-driven security to screen information itself and not simply organization to limit network protection dangers.

The study has addressed the application of AI concepts in various possible areas of HRM. These areas may not be there in the regular stream of activities. Still, it is trying to impose the importance of addressing the same—the dimensions measured under that showcase human aspects enhancement with the help of AI. The result revealed the way these aspects influence the agile capability of HRM. Digitization of HR and ONA is closed related technological implication in HR, enabling the iterative process of function. Both of the above aspects need an excellent organizational design to support the implementation and progress. Thus this study paved a new way by linking two elements prevailing today’s Industry 4.0 era.