Leaving (Operational) Human Resource Management to Artificial Intelligence

HRM departments have traditionally used automation to streamline administrative tasks, allowing HR professionals to focus on more strategic responsibilities. This transition was primarily driven by the need to reduce paperwork, improve efficiency, and minimize human error. Recently, however, a new level of automation has emerged in HRM, often referred to as algorithmic management. Powered by AI algorithms, this approach is transforming traditional HRM practices by introducing complex data management and, in some cases, even autonomous decision-making. Initially developed in companies like Uber, algorithmic management is now spreading to more conventional organizations. This chapter offers examples of algorithmic management practices and showcases some AI-based HRM solutions currently in use.