Conclusion

All studies to date agree that artificial intelligence is the most significant and unavoidable force affecting the world economy. According to projections and popular thinking, businesses without AI won’t be able to thrive. In every firm, whether or not this AI-influencing component is used, will surely have an impact on human resources.

All aspects of human personal and professional lives are being invaded by AI. Systems powered by AI are increasing staff productivity. AI can evaluate, forecast, and make automatic routine decisions based on rules thanks to its sophisticated algorithms. Various phases of the talent life cycle are managed by AI. Since AI will eventually either replace or supplement HR in firms, it is crucial to consider the positive aspects of AI adoption (Ashwani, Kamal and Jayanthi 2021). And it will affect human resources to replace the need and efficiency. So, in the future human resources will be enslaved and colonized by AI or machines.

Armstrong (2017) defines performance improvement as “the continuous process of improving performance by setting individual team and goal objectives that are aligned to the strategic goals of the organization, planning performance to achieve the objectives, reviewing progress, and developing the knowledge, skills, and abilities of the people.” In the future of human resources, it will be more important to keep the job. Because AI becomes more effective, the demand for outputs will increase in difficulty to meeting client demands.

The famous statement by Niels Bohr that “it is hard to foresee, especially the future” is very applicable to the future of AI (Dinesh, Harindra,Tharindu, Vithana and Asoka 2014). Because of the fastest growth and need for the implementation of AI, human resources will face both sides of the impact of AI.

The future of human resources will be impacted by one of Stephen Hawking’s well-known AI quotes, “Whereas the short-term impact of AI depends on who controls it, the long-term impact depends on whether it can be managed at all”

 

 

 

References:

Amstrong, M and Taylor S, 2017, Armstrong’s Handbook of Human Resource Management Practice, London: Kogan page

Ashwani Upadhayay, Kamal Khandelwal and Jayanthi Iyengar 2021, AI Revolution in HRM, SAGE, India and England

Dinesh Asanka, Harindra Fernando, Tharindu Adhikari, Vithana Pathirage and Asoka Karunananda 2014, “State of Artificial Intelligence in Sri Lankan Software Industry”, International Journal of Innovative Research in Technology, Vol.1 Issue 8, p.9, Researchgate, Sri Lanka

 

Impact on Sri Lankan Industries

 

The global implementation of AI is accelerating the transition from the traditional to the digital economy. It is not apart from a developing country like Sri Lanka.

Sri Lanka’s ability to use AI is depending on ICT (Information and Communication Technology) maturity. ICT layers such as sufficient broadband, cloud, big data, and IoT (Internet of Things) are overlapping each other (Pulasthi, 2021). If any layer/ aspect is missed its value, the overall AI system will collapse. So, Sri Lanka has to be advanced in technology to the adoption of AI in its industries.

For a start, Sri Lanka can look to commercial AI systems or apps offered by corporate partners. With enough investment in AI, Sri Lanka will be able to absorb new technologies and advance more quickly than other nations since it is not burdened by the baggage of massive legacy systems like more developed nations are. (Pulasthi, 2021).

By 2022, Sri Lanka’s IT sector has the potential to generate US$ 5 billion in revenue, 200,00 direct employment openings, and up to 1,000 start-up companies. Sri Lanka Association for Software and Services Companies (SLASSCOM) claims that the potential economic impact of data science and AI outweighs that of more conventional information and technology services and hardware. Data science and artificial intelligence will be given top priority in Sri Lanka’s IT sector in order to boost skilled worker exports and raise GDP (EDB, Ceylon today 2019)

The Sri Lankan government’s institution ICTA (Information and Communication Technology Agency) takes a significant role in the digital industry of the nation. The specific features are highlighted as follows, (ICTA, 2016)

Digital Infrastructure

The purpose is to improve the effectiveness, convenience, and friendliness of government services, more than 850 government organizations are connected through the Lanka Government Network (LGN), which was already put into place by ICTA. The Lanka Government Cloud (LGC) was put into place to offer secure, dependable, and affordable infrastructural facilities in order to realize the goal of a country that is digitally inclusive.

Digital Government

Reduce bureaucracy, increase efficiency, accountability, and transparency, and enhance the quality of government service delivery through an integrated and effective process. LGN and LGC make use of secure and dependable infrastructure facilities for the government in order to host any kind of application or system and guarantee that government offices, buildings, and organizations are connected with sufficient bandwidth to support the use of e-Government services by both public servants and visitors to these locations.

Human Resource Capacity building

Building a strong relationship between educational institutions and industry is the obvious next step. Through clusters in technology and education, ICTA hopes to achieve this difficult balance.

Covid 19 Response of ICTA

During the Covid 19 outbreak in the country, ICTA introduced the following digital solutions to facilitate the government to operate effectively. They are as follows: (ICTA, 2020)

1.      MyHealth Sri Lanka app: provide information related to covid 19 infected individuals.

2.      Pre-Arrival Clearance Application for arrivals at the airport: to identify passengers with high risk before they land

3.      Contact Tracing (DHIS2): able to visually depict the graph of people whom they have associated with during an investigation

4.      Contact Sri Lanka: to connect Sri Lankans overseas with stakeholders in Sri Lanka and the network of Sri Lanka Missions abroad

5.      Web portal to support communication with foreign nationals in Sri Lanka

6.      Meet.gov.lk: an open standard for Web communication

7.      Introduce collaboration tools and instant messaging across the government: provide a fast, reliable, and secure platform for Working from Home

8.      Work related to Government Circular on Delivering Government Services via Work From Home (WFH) arrangements during the Global coronavirus pandemic

9.      Stayhomestory: given an opportunity to tell people’s experience during the lock-down period

10.  Facilitate Digital Education: introduced distance learning modes

11.  www.covid19.gov.lk: an information hub to find all the information and activities related to Covid 19 outbreak

12.  ICT-BPM Startup Industry Support amidst Covid19: to support the industry and let the economy function as normally as possible during the Covid19 situation

In the Asian region, Sri Lanka is quickly overtaking India as a major software outsourcing nation. there are many various sizes of businesses in the Sri Lankan software sector, ranging from large to small. The popularity of the information technology sector has led to the strengthening and advancement of IT education in Sri Lanka. (Dinesh, Harindra,Tharindu, Vithana and Asoka 2014, p.9)

Research indicates that ICTA is falling behind in its efforts to apply AI principles to its software solutions. In contrast, the government will focus on the transportation, tourism, and apparel industries in the future years. Out of these sectors, the Textile & Garment industry will have the capacity to gain AI technologies. (Dinesh, Harindra,Tharindu, Vithana and Asoka 2014, p.12)

The survey of AI in the Sri Lankan software industry has found the following reasons and barriers to introducing AI (Dinesh, Harindra,Tharindu, Vithana and Asoka 2014, p.12):

·         According to the responders more than 90% had average or poor knowledge of AI

·         The companies which are sponsoring AI are mainly small-scale companies

·         35% of AI usage is in data warehouse and data mining

·     Many IT experts do not aware of SLAAI (Sri Lanka Association for Artificial Intelligence) activities such as AI publicity, offering short courses in areas of AI, promoting research in AI, and AI conferences and publishing proceedings.

·         85% of the responders were of the view that Sri Lanka does not have adequate training for professionals to learn new AI technologies.

·         Over 70% of AI professionals do not have academic knowledge in AI.

·         60% of responders are in the fear that how people will use the AI technologies

According to a 2006 study on software implementation failures in Sri Lanka, transition problems during software implementations are to blame for 60% of software failures. Since AI is a new technology, AI software implementers may have greater challenges throughout the project’s transition period (Dinesh, Harindra,Tharindu, Vithana and Asoka 2014, p.12).

Apparrajitha (2019) argues that this AI new development has created opportunities, as well as the challenges everywhere in the global society, have not been sufficiently investigated in Sri Lanka.

The stated hurdles and economic uncertainties are influencing factors for Sri Lankan enterprises to embrace AI to complete the total tasks and maintain equilibrium with the global economy.

 

 

References:

Aparrajitha Ariyadasa (2019), ‘A Challenge from Humanoid Bots: An Analysis of Legal Regime in Sri Lanka on Artificial Intelligence’, International Conference On Business Innovation (ICOBI) 22 November, p.164, Colombo, Sri Lanka

Dinesh Asanka, Harindra Fernando, Tharindu Adhikari, Vithana Pathirage and Asoka Karunananda 2014, “State of Artificial Intelligence in Sri Lankan Software Industry”, International Journal of Innovative Research in Technology, Vol.1 Issue 8, pp.9-12, Researchgate, Sri Lanka

EDB and Ceylon today 2019, “Artificial Intelligence: Making SL future-read”, Sri Lanka Export Development Board, Sri Lanka, viewed on 6 December 2022

<http://www.srilankabusiness.com/news/artificial-intelligence-making-sl-future-read.html>

ICTA 2020, “Covid 19 -Responses”, ICTA, Sri Lanka, viewed on 7 December 2022

<https://www.icta.lk/covid19-response/>

ICTA 2016, “Digital Sri Lanka”, ICTA, Sri Lanka, viewed on 6 December 2022

<https://www.icta.lk/digital-srilanka/>

Pulasthi Gunawardhana 2021, “AI will lead Sri Lanka to the next level of economic development”, Daily FT (www.ft.lk), Sri Lanka, viewed on 6 December 2022

<http://www.ft.lk/it-telecome-tech/AI-will-lead-Sri-Lanka-to-the-next-level-of-economic-development/50-719867>

Impact on Human Resources

Today, it is impossible to isolate the effects of technological development on business. Artificial intelligence has a significant impact on all industries. It directly or indirectly imposes human resources, either favorably or unfavorably. This article’s post specifically seeks to determine the influence of all human resources.

The “Industrial Age” was ushered in by the industrial revolution, mechanization, particularly in the UK, and automobile manufacturers. At the start of the 20^th century, production had a significant impact on business and economics, and the supply side of the economy followed. The industrial age’s development and mechanization had an impact on the production components, such as capital, entrepreneurship, labor, and land. As a result, lifestyles, education, finances, and management have all altered (Cuneyt, 2015).

Robotics and AI are expected to open new chapters in business and economics, bringing with them new lifestyles and sociological impacts. Regarding this first impact on the company, recruiting or purchasing new robots that most likely have AI compared to its pioneers would also be affected. The economy’s unemployment rate will rise, which is one of the obvious effects (Cuneyt, 2015).

There is no denying that human and digital resources will coexist in the future of human resources. HR executives will need to concentrate on determining the ideal ratio of human and computer intervention when managing the workforce of the future. HR will need to mix AI and digital talents with the human touch in the future by becoming more individualized, personable, and intuitive (Ashwani, Kamal and Jayanthi, 2021). So, the use of AI will become an unavoidable aspect of the world of human resources.

The definitions of artificial intelligence systems are classified into four categories (Joost, Egbert, Walter, Peter and Mannes, 2009):

System that thinks like humans

System that acts like humans

System that thinks rationally

System that acts rationally

The above definitions show the real picture of AI which is going to duplicate human resources.

Virtual personal assistants and chatbots will undoubtedly take over a lot of mundane, repetitive duties as AI and other developing technologies become more prevent in the workplace, thereby freeing up people’s time and attention for more creative and cognitive work. Job displacement will be impacted in some way, just like previous technological revolutions. Companies will in fact be tempted to use algorithms to replace the workers they must lay off to stay afloat (Salim, 2020).

Humans are being replaced by AI-powered computers at work, and this trend is projected to continue as more monotonous, rule-based professions become automated. It’s becoming more difficult to deal with the newfound insecurity brought on by machines taking our employment. It has become really difficult to manage your work-life balance. AI-driven machines will increase the productivity and effectiveness of the current workforce. Future workers will have more time and energy to follow their newly discovered interests, according to experts (Ashwani, Kamal and Jayanthi, 2021).

In addition, jobs may be impacted by AI in various ways. This AI aid may in some situations result in employment losses. In some circumstances, it is anticipated that AI will increase the productivity of current workers. These workers will be able to spend their time engaging in strategic tasks thanks to AI (Ashwani, Kamal and Jayanthi, 2021).

The term “cultural environment” refers to the “feeling” element, which encompasses the vibes an employee experiences as well as the ambiance and tone that the workplace creates through organizational design and leadership style. Employees can see, touch, taste, and smell the physical environment, which includes places like the workplace and cafeterias. The tools that employees use to complete their tasks are referred to as the technological environment and include devices, applications, software, user experience, design, and digital transformation (Sharmila and Gerald, 2022). Here the impact of AI will bring a new environment to the customers without any feelings between organizations.

The replacement of human workforces by robots and AI will create a significant paradox and conundrum. The least likelihood of works ranked below that computerization could affect the US is shown by a study conducted by Neta, a London-based non-profit research and innovation group, and co-authored by scholars from Oxford University (Cuneyt, 2015).

a.      Translators and interpreters (5.8%)

b.      Performing artists (7%)

c.       Radio broadcasters (7.7%)

d.      Film & TV producers (8%)

e.      R & D natural Sciences (10.9%)         

World Economic Forum (2016) Report has predicted that in the next five years, labor markets will see a sea change in skill sets needed for future survival (Ashwani, Kamal and Jayanthi, 2021).

According to the 2016 Dell and Intel Future Work Study Global Report, more than 30% of employees said that major time wasters at work were technology, such as sluggish or malfunctioning software or equipment (Sharmila and Gerald, 2022). It subtly illustrates another effect of AI use in business.

One might understand the kind of pressure such technological advancements place on the demand for manpower around the world if one examines the AiFi, AI, and ML (Machine Learning) technology utilized in California stores that function 24 hours a day without a staff member (Ashwani, Kamal and Jayanthi, 2021). This will impact human interaction and independency in any firm.  

Currently, AI is linked to both utopian and dystopian predictions and expectations. As humans and AI work together, one side sees a new stage in evolution and celebrates the potential that will result from the fusion of human, biological thinking, and the intellect of computers and systems, while the other side sees ominous future scenarios lurking. According to them, the threat of subjugation, if not annihilation, by a new superintelligence or at least increased subordination to the capitalist-industrial optimization logic of the internet economy, potentiated by the power of autonomous systems, exits (Andreas, 2021). 

AI has an endless list of potential applications in HR and employee experience. Mya can instinctively match the cultural fit of an employee with a business, just as Wade and Wendy, two recruiting chatbots were able to 10x your Key Performance Indicators (KPIs) and shorten the recruitment life cycle (Ashwani, Kamal and Jayanthi, 2021). This achievement will give an effective output but on the other hand, definitely push out the inefficiency of human resources. 

AI has a significant impact on both personal and professional lives, as is widely known. AI is making human lives simpler and more structured while also assisting in the more effective completion of tasks. Work, the workforce, and HR are being transformed by AI. Transparency, compliance, measurement, and equity are all ways that AI is enhancing the relationship between staff and management (Ashwani, Kamal and Jayanthi, 2021).

 

 

 

References:

Andreas Moring 2021, AI on The Job (Guide to Successful Human-Machine Collaboration), Springer, Germany

Ashwani Upadhayay, Kamal Khandelwal and Jayanthi Iyengar 2021, AI Revolution in HRM, SAGE, India and England

Cuneyt Dirican, (2015), ‘The Impacts of Robotics, Artificial Intelligence on Business and Economic’, World Conference on Technology, Innovation and Entrepreneurship (Procedia – Social and Behavioral Science), (195), 564-573, Istanbul Arel University, Turkey

Joost N. Kok, Egbert J.W.Boers, Walter A. Kosters, Peter van der Putten 2009, Artificial Intelligence: Definitions, Trends, Techniques and Cases, Netherland

Salim Sheikh 2020, Understanding the Role of Artificial Intelligence and Its Future Social Impact, IGI Global, UK

Sharmila Rani Moganads and Gerald Guan Gan Goh, (2022), ‘Digital Employee Experience Constructs and Measurement Framework: A Review and Synthesis’, International Journal of Technology, 13 (5), Malaysia

 

The pros and cons of AI usage

 

All industries benefit from the increased usage of artificial intelligence since it makes labor simpler and more efficient. However, acceptance of the impacts or drawbacks of AI must also be taken into account. Through the influence or adoption of AI, Human Resource strategy is now widely recognized as being an important – and perhaps essential way of developing organizations to meet increased competitive challenges (Tony and Laura, 2003).

Human Resources and organizations

AI-based software is being used by HR professionals to handle applicant applications, assess resumes, communicate with candidates, arrange interviews, conduct online virtual video interviews, and analyze tone and pauses in voice recordings. Organizations are using a variety of AI-based solutions and services to manage all phases of the employee life cycle, from performance management to compensation management. AI tools are being utilized for anything from meeting scheduling to browsing recommendation lists on OTT platforms like Netflix and Amazon Prime (Ashwani, Kamal and Jayanthi, 2021).

It is well known that deploying AI to manage HR activities comes at a significant expense. But the following advantages in HR functions can be used to justify this cost. The use of AI reduces the amount of time HR personnel spend on administrative tasks. Because AI bots can perform low-value, regular HR transactions and inquiries, AI also lessens the pressure on help desks. AI is helpful for functions involving retention and recruitment. AI also aids in assessing how HR activities affect corporate growth and earnings. AI is helpful in HR choices since it lessens bias. With the use of conversational AI, enterprises may use AI to stay competitive. HR professionals may now devote more time and effort to strategic planning due to time and effort efficiency advantages (Ashwani, Kamal and Jayanthi, 2021). As a result, the adoption of AI will result in a reduction in overall time consumption, which will help an organization complete its tasks more quickly, and fewer human resources are also beneficial for any company.

According to Gartner 2019 AI survey, 17% of firms manage their HR responsibilities using AI-based solutions. Another 30% of respondents to the study said they intended to deploy AI by 2022. Additionally, 52% of firms currently use AI for workforce planning, 51% use it for learning and development, and 48% use it for skills management. According to the poll, AI-based solutions assist HR departments in creating new personalization strategies by creating HR systems and services that are quick and simple to use (Ashwani, Kamal and Jayanthi, 2021).

Finding a person’s genuine purpose and meaning in life and at work is one of employee engagement’s primary goals. Traditional approaches offered few opportunities for interaction and predetermined measures for gauging their productivity and participation. To improve the employee experience before, during, and after work, firms can use AI to approach engagement as a continuous, insight-based, personalized, and tailored strategy (Ashwani, Kamal and Jayanthi, 2021).

In addition to employee engagement, attitude and behavior mapping are two AI-based engagement methodologies. During the hiring process, several firms employ AI to improve applicants’ applications. AI-based assessments are helpful in evaluating the personality and abilities of candidates late on in the selection process. By offering learners individualized and tailored learning solutions, AI aids in supporting learning and development (L&D). The learning preferences and demands of employees can be determined via AI-based learning platforms. And chatbots powered by AI are being used by businesses to answer questions from applicants and staff members during the recruitment, selection, onboarding, training, and performance review process. Additionally, AI frees up the time of the instructors and reduces the amount of money needed to set up the training programs (Ashwani, Kamal and Jayanthi, 2021).

Education sector

The quality of online education has already benefited from AI and machine learning. Each student’s learning pace will be different, and personalized interactive tutoring will be able to alter the content and adapt to that while evaluating the student’s progress and providing timely feedback (Salim, 2020). In order to continue providing educational services without interruption during the epidemic, many segments of the education industry, notably those involved in distance learning, incorporated AI and machine learning.  

Common usage

From tracking applications to Google maps to AI digital personal assistants like Siri, Google Assistant, Cortana, or Amazon Alexa, AI is a component of many business lines. With the aid of Grammarly, an increasing number of people are adopting AI to verify their language and grammar. Several people use artificial intelligence during virtual meetings for translation. For translating one language, Skype’s Translator provides translation in numerous languages. AI is also being used by people to take notes during conference calls. Also, Google’s smart feature uses AI to analyze the email’s content and recommend short responses (Ashwani, Kamal and Jayanthi, 2021). As a result, there are many ways in which the use of AI benefits daily life. 

Banking industry - Inquiry Chatbot

Another aspect is that banks have websites, but due to GUIs or complicated navigation, these websites may be difficult for most individuals to use or understand. These kinds of issues can be resolved by creating a chatbot. The system can quickly and easily answer users’ questions at any time. Customers do not need to visit a bank or customer service center to get their questions answered; as a result, users and bank workers can save valuable time and have less work to complete. Users of this system can submit queries verbally or in plain text, which is an advantage. The technology will comprehend queries and provide accurate responses. For any bank-related inquiries, a chatbot is a computer program designed to facilitate communication between a human and an intelligence machine (Arati and Ajaykumar, 2019).

Summarized advantages are as follows: (Arati and Ajaykumar, 2019, p.53)

The bot makes users feel that they are interacting with a human being.

The bot answers very quickly.

The system is easy to understand and handle.

The intelligent system understands users’ queries and answers quickly.

Users need not write questions they can speak questions.

Users need not write the questions in the standard format

A time-saving, intelligent assistant system that will lighten the job of bank staff members. Users experience communication with a human, much like a personal assistant. The user has the option of asking questions orally or in plain text in English. The system will analyze the user’s inquiry and produce the appropriate response. People have used both natural language processing and artificial language processing to achieve these tasks (Arati and Ajaykumar, 2019). In order to provide its customers with effective service, the banking sector is currently gradually implementing chatbots that use AI throughout the world.

Conventional banking systems have clearly been impacted by the recent digital transformation, but it has also made businesses less safe and more vulnerable to cybersecurity dangers. Businesses are increasingly considering technical advancements like blockchain when developing an integrated financial fraud protection strategy (Nasser, Anis and Ananda, 2021). So, it’s important to take heed of the concern over the negative effects of using AI.

Barriers to the adoption of AI

A talent gap results from obstacles such as a shortage of educated and talented workers in addition to the cost barrier. Privacy concerns are a significant issue. HR is regarded as the data keeper for employees. The security of these data against theft and illegal use is a significant problem that is holding back the use of AI in HR. AI needs to be maintained, updated, and reviewed continuously. Another significant problem is this consistent and ongoing update and reviewing procedure. Major difficulties include the availability of data for training and worries about interaction with current systems. Due to the fact that the majority of current systems use Software as a Service (SaaS), a significant obstacle is the absence of effective case studies and tested applications (Ashwani, Kamal and Jayanthi, 2021).

 

 

 

References:

Arati A and Ajaykumar T (2019), “Banking Inquiry Chat Bot”, International Journal of Science Technology & Engineering (Vol.5, Issue 7), pp.51,53, Academia, India

Ashwani Upadhayay, Kamal Khandelwal and Jayanthi Iyengar 2021, AI Revolution in HRM, SAGE, India and England

Nasser Rashad Al Mwali, Anis Moosa Al Lawati and Ananda S (edts) 2021, Fourth Industrial Revolution and Business Dynamics: Issues and Implications, Palgrave Macmillan, Singapore

Salim Sheikh 2020, Understanding the Role of Artificial Intelligence and Its Future Social Impact, IGI Global, UK

Tony Grundy and Laura Brown 2003, Value-based Human Resource Strategy: Developing your consultancy role, Elsevier, Oxford and Burlington

Overview of Global Application

The growth of AI in the global context is massively capturing many industries daily. This particular post of this article screens some and gives space to expand the ideas in the future.

In understanding changes, in employment laws, there has been a recent trend toward emphasizing the “universal”, with economics and psychology serving as the preeminent disciplinary frameworks. Many people take it for granted that “globalization”, in the shape of the internationalization of markets and developing technology, has not only been the primary force behind the change but has also “determined” outcomes (Stephen, 2005). So, globalization itself takes Artificial Intelligence as the needed resource of all firms. in the future, it may cover all. The following diagram forecasts the future.

Source: Ralf and Marie (2020, p.2), Forecast of turnover with enterprise applications in the field of AI – Worldwide from 2016 to 2025 (in US $ million)

The above figure is indicating that the global economic effects triggered by Artificial Intelligence. And the greatest challenge of AI is still the comprehensive reproduction of the human brain (Ralf and Marrie, 2020). The world will slowly move to the control of AI in the future. 

Particularly in the US and China, AI attracted a sizable amount of investment. The situation is still fairly uneven in Europe, with some of those nations having a favorable climate for AI while having a favorable environment for AI while others lag behind. Initiatives to advance AI development in Europe have been put in place by European governments (Nasser, Anis and Ananda, 2021).

Banking Industry

From a global view, the banking industry is a well-known AI implementor today. The banking sector has adopted AI to encourage faster customer service, as well as to enable institutions to better manage data and create strategic goals. According to the PwC report, AI contributed 2 trillion dollars to GDP in 2018 and it will reach 15.7 trillion dollars by the year 2030 (Nasser, Anis and Ananda, 2021). It shows the contribution of AI to the Global economy.

Apart from that, United Services Automative Association (USAA) is the first bank to accept smartphone deposits from customers and has also agreed to invest in artificial intelligence technology that will help to detect probable abnormalities through apps related to fraud prevention and fraudulent activity (Nasser, Anis and Ananda, 2021).

In addition, Virtual Assistants regularly gather information about commercial banks by observing their previous transactions and surfing patterns in order to provide a highly tailored user experience. The HDFC Bank-developed EVA (Electronic Virtual Assistant) chatbot has handled more than 2.7 million customer requests, communicated with more than 530,000 different customers, and participated in 1.2 million dialogues. iPal was launched by the ICICI Bank for around 6 million inquiries and the chatbot had 90% accuracy when interacting with 3.1 million users. Citibank has also invested more than 11 million dollars in a new anti-money laundering system and used machine learning and big data (Nasser, Anis and Ananda, 2021).

UNDP’s highlights of the other industries

AI use in Medical Industry,

“In medicine, AI is already more accurate when it comes to designing personalized treatments or predicting heart attacks. When AI is combined with human diagnosis, the error rate is only 0.5 percent - compared to 3.5 percent for human doctors. According to WHO, non-communicable diseases cause approximately 89 percent of premature deaths in the European region, thus better diagnostics could help save millions of lives” (Milica, Alex and Lejla, 2018).

AI use in Farming Industry,

“Indian farmers are using AI, which takes into consideration data, like changing weather patterns, production, and sowing area, to inform their decisions about when to sow. This increased their yield by 30 percent per hectare, reduced pest-related risks, and predicted prices up to three months in advance.

Precision farming, through tools like the LettuceBot, can identify and differentiate sprouts from weeds, and isolate weeds for spraying” (Milica, Alex and Lejla, 2018).

Artificial Intelligence Statistics and Facts for 2022

Source: Ashley, 2022 (CompTIA)

            The State of AI in Business:

86% of CEOs report that AI is considered mainstream technology in their office as of 2021.

            91.5% of leading businesses invest in AI on an ongoing basis.

           Customer satisfaction is expected to grow by 25% by 2023 in organizations that use AI.

50% of enterprises plan to spend more on AI and machine learning in 2021 and 20% report a significant increase in their budgets.

            Voice Search and AI stats:

            40% of adults use voice assistants to search on a daily basis.

            50% of all searches were the result of a voice search in 2020

            43% choose digital voice assistants because they are faster than type search.

Machine Learning and AI stats:

76% of enterprises surveyed in Algorithmia’s 2021 report plan to prioritize AI and machine learning initiatives over other IT goals in 2021.

83% of organizations have increased their AI and machine learning budgets YOY since 2019

            Impact of AI on the Jobs and Employment Market:

            38% of employees expect their jobs to be automated by 2023

            13% expect AI to eliminate positions entirely in their industry.

AI technology was expected to create 500,000 more jobs than it was expected to replace in 2020.

Jobs are anticipated to be in high demand with 97 million specialists needed in the AI industry by 2025.

            Usage of AI by industry:

            Other 22% /Technology 17% /Financial Services 15% /Healthcare 9% /Education 8%

            Government/ Public sector 6% /Telecomm 5% /Manufacturing 4% /Media 3%

Defense/ Security 3%

            Stats about AI in the Retail Industry:

Expected to reach $20.05 billion by 2026, a compound annual growth rate of 39% since 2019.

80% of retail executives expect their companies to adopt AI-powered intelligent automation by 2027.

            A growth of 230% in machine learning spending between 2019 and 2023.

            Chatbots and AI Facts and Figures:

           89% found chatbots to be useful or very useful for personalizing customer interactions.

            69% reported reduced operational costs due to chatbot usage.

            63 preferred to speak with a chatbot over a human

            48% reporting customer frustration and churn due to chatbot usage.

47% finding that significant IT involvement is needed to personalize experiences with chatbots.

            AI Market statistics:

            The global market size of $327.5 billion in 2021.

            AI market share in the US is expected to value $190.61 billion by 2025.

            China is expected to become an AI industry leader in the coming years.

            AI Growth:

            AI software will reach $62 billion in 2022 alone, an increase of 21.3% from 2021

            The forecast annual growth rate of AI between 2020 and 2027 is 33.2%.

            Virtual Assistants:

            50% of knowledge workers will use a virtual assistant by 2025.

            Spend on virtual assistants will reach $3.5 billion in 2021

            AI in Customer service:

80% of marketers in 2020 already had chatbots as part of their customer experience strategy.

            40% of businesses say that customer experience is their top motivator for using AI.

            80% of customer service interactions were responded to by chatbots.

            AI in Marketing:

48% of marketing leaders cite AI as making the most significantly different in how customers interact with them.

            51% of eCommerce companies use AI to provide a seamless experience.

            64% of B2B marketers consider AI to be valuable in their marketing strategy.

          

The other updated (Nov 26, 2022) AI statistics from Nick G. (2022)

            AI-powered voice assistants to reach 8 billion by 2023.

            By 2025, the global AI market is expected to be almost $60 billion

The highest number of Alexa’s inventory skills are accessible in the US – about 66,000 skills.

Global GDP will grow by $15.7 trillion by 2030

            AI can increase business productivity by 40%

            The number of AI startups grew 14 times over the last two decades.

            Investment in AI startups grew 6 times since 2000.

Already 77% of the devices use feature one form of AI or another

The overall view of global application, according to PwC’s FinTech Trends India Survey, the amount of money invested globally in artificial intelligence surpassed $5 million in 2017, rose to $41.1 billion in 2018, and is predicted to reach $300 billion by 2030 (Nasser, Anis and Ananda, 2021).

 

 

 

References:

Ashley Watters, 2022, 30+ Artificial Intelligence Statistics & Factors for 2022, CompTIA, viewed 30 November 2022,

< https://connect.comptia.org/blog/artificial-intelligence-statistics-facts>

Milica Begovic, Alex Oprunenco and Lejla Sadiku 2018, Let’s talk about artificial intelligence, UNDP, viewed 30 November 2022,

< https://www.undp.org/blog/lets-talk-about-artificial-intelligence>

Nasser Rashad Al Mwali, Anis Moosa Al Lawati and Ananda S (edts) 2021, Fourth Industrial Revolution and Business Dynamics: Issues and Implications, Palgrave Macmillan, Singapore

Nick G. 2022, 101 Artificial Intelligence Statistics [Updated for 2022], techjury, viewed 30 November 2022,

<https://techjury.net/blog/ai-statistics>

Ralf T. Kreutzer, Marrie Sirrenberg 2020, Understanding Artificial Intelligence: Fundamentals, Use cases and Methods for a Corporate AI Journey, Spinger Nature, Switzerland

Stephen Bach 2005, Managing Human Resources, Blackwell Publishing, Australia

 

 

Influencing factors of Artificial Intelligence

The need of the machine in workforce was the invention of humans to make the task easier and effective. In the process of human invention, artificial intelligence emerged, this is the truth which is revealed in the previous posts of this article. All inventions were influenced by causes, that can be seen as the influencing factors.  

Artificial intelligence too has many influencing factors to adapt in the business firms globally. Ashwani, Kamal and Jayanthi (2021) have cited the identified five primary reasons for implementing AI in HR They are as follows:

The first reason is that AI can solve pressing business challenges. With AI, HR can scale and deliver new insights and services without being impacted by headcount or cost. AI can help to handle challenges like managing human capital and financial resources to develop and deploy business strategies.

The second reason is the efficacy of AI in attracting and developing new skills. AI is useful in managing disruptions. Organization needs to respond quickly to these disruptions. AI is helping forms to complete the skills and talent needed in this volatile, uncertain, complex and ambiguous business environment. 

The third reason is that AI is useful in improving employee experience. Employees expect personalized communications, dashboards, training content and other engagements. 

These employees believe that things should be tailored and offered as per their requirements and preferences.

The fourth reason is that AI can provide strong decision support. AI can analyze the information needs and customize the analytics as per the needs of the user. AI is used to deliver personalized and customized recommendation. 

The last reason is that AI can help to make efficient and effective use of HR budgets. With AI, now HR managers can plan their budgets and justify funding with metrics for PM and impact. With AI, now HR managers can devote more time and effort on strategic and more valuable activities.

(Ashwani, Kamal and Jayanthi, 2021)

Apart from the above reasons, there are some practical aspects too that influence the adoption of AI. The development of digital workplaces and smart offices is gaining momentum across firms due to its capacity to reshape and decentralize the traditional office setting (Sharmila and Gerald, 2022).

The reason Covid -19 pandemic is and has changed the way  we work, exercise, learn, communicate, socialize and most importantly think. (Ashwani, Kamal and Jayanthi, 2021, p.5) Therefore the organizations need to utilize the Covid -19 crisis as an opportunity to accelerate technological and artificial intelligence (AI) – based investments in remote working, reskilling, skills-based hiring and corporate leaning (Ashwani, Kamal and Jayanthi, 2021, p.6).

Furthermore, the exploration of DEX (digital employee experience) has become even more crucial, ensuring the staggering changes in the workplace landscape triggered by the covid-19 pandemic (Sharmila and Gerald, 2022).

Because, people across the world encountered sudden job disruptions due to lockdown, and self-isolation, which disconnected them from their workspaces and colleagues. Due to this unexpected experience, numerous employers migrated to digital technology as their contingency plan to continue operating via teleworking and tools such as video conferencing, cloud services and virtual private networks (Sharmila and Gerald, 2022). So, this pandemic became one of the major influencing factors in the present scenario to look into AI.

On the other hand, according to Cuneyt Dirican (2015),

The ‘digital age’ together with other sciences like mechatronic, nano technology, genetic and so on is a step for “Space Economics” some other progresses are going to change business and economics directly or indirectly more than other development. These progresses are named Robotics and AI.

The ‘Digital Age’ that began with internet and mobile technologies, plunges corporations into opening their stores in cloud and web, to mobilize together with its customer base, drag governments into lounging their e-government initiatives, financial institutions into presenting themselves in tablets, mobile phones and social media.

Huge transformation in doing a new type of business which is called e-business containing e-signature, e-invoice, e-commerce, internet, mobile banking and e-payments, creates efficiency in corporate and individual life. Minimizing or optimizing the work process, business processes re-engineering shifted industrial age towards the digital age by the help of e-business environment. (Cuneyt, 2015, p.565)

In the context of the HR architecture, researcher Osterman argued that firms choose among different HR practices when triggered by events such as technological change, reduced labor supply, and rising wages. These unavoidable forces contribute to the creation of different employment subsystems within firms (Peter, John and Patrick, 2007). So, the technological change along with needs and issues related to the laborers too are the influencing factors of AI in present firms.

 

 

References:

Ashwani Upadhayay, Kamal Khandelwal and Jayanthi Iyengar 2021, AI Revolution in HRM, SAGE, India and England

Sharmila Rani Moganads and Gerald Guan Gan Goh, (2022), ‘Digital Employee Experience Constructs and Measurement Framework: A Review and Synthesis’, International Journal of Technology, 13 (5), Malaysia 

Cuneyt Dirican, (2015), ‘The Impacts of Robotics, Artificial Intelligence on Business and Economic’, World Conference on Technology, Innovation and Entrepreneurship (Procedia – Social and Behavioral Science), (195), 564-573, Istanbul Arel University, Turkey

Peter Boxall, John Purcell and Patrick Wright (edts) 2007, The Oxford Handbook of Human Resource Management, Oxford University Press, New York