The application of Artificial Intelligence (AI) in Human Resource Management: Current state of AI and its impact on the traditional recruitment process

Background: The world is constantly becoming more prone to technology due to globalization which implies organizations have to stay up to date in order to be competitive. Human Resource Management (HRM) is more important than ever, especially with a focus on the recruitment of new employees which will bring skills and knowledge to an organization. With technological advances also comes the opportunity to streamline activities that previously have had to be carried out by humans. Therefore, it is of the highest importance to consider and evaluate the impact technology might have on the area of HRM and specifically the recruitment process. Purpose: The purpose of this thesis is to research the implications that technological advancements, in particular Artificial Intelligence (AI), have for the recruitment process. It aims to investigate where AI can be implemented in the traditional recruitment process and possibly make the process more effective, as well as what the implications would be of having AI within recruitment. Method: This thesis uses a qualitative study with semi-structured interviews conducted with eight international companies from all over the world. It is viewed through an interpretivism research philosophy with an inductive research approach. Conclusion: The results show that the area of AI in recruitment is relatively new and there are not many companies that utilize AI in all parts of their recruitment process. The most suitable parts to implement AI in traditional recruitment include recruitment activities such as pre-selection and communication with candidates and sending out recruitment results for applicants. The main benefits of AI were seen as the speeded quality and elimination of routine tasks, while the major challenge was seen as the companies’ overall readiness towards new technologies