AI-Powered HCM: The Analytics and Augmentations

*Kovvali Bhanu Prakash, Appidi Adi Sesha Reddy and Ravi Kiran K. Yasaswi*

### **Abstract**

Artificial intelligence (AI) is seemingly everywhere, red-hot right now, livewire and livelihood for everyone contributing \$15 trillion to the World Economy and amplifying Society (*Humans 2.O*), auguring Service (*Cyborg Concierge*) and augmenting Management (*C-Suite*). The waning of 'Enterprise Technologies' (R/3 Legacy Systems) and waxing of 'Dynamic Technologies' *viz*., Artificial Intelligence (AI), Deep Learning (DL) and Machine Learning (ML) reshaped, redefined and rewrite the concept of 'Human Capital Management (HCM)'. The 'Human Capital' has always been a top challenge and 'Human Talents' are ever scarce resources even today. The Human Capital Management (HCM) and Human Capital Intelligence (HCI) emerged as 'Natural Intelligence Science' for Chief Human Resources Officer (CHRO). The HCM Functions have been augmenting, 'app'ified (an application form) a nerve in a large, diagnosing and detecting problems, proposing the promising solutions. AI-powered HCM embedded into the workplace and transformed the workforce from doing digital to being digital, from centre driven to human-centric, from compliance and control to trust and empowerment. In dictum, AI and ML will be 'Bright and Shiny Objects' in the future reinventing Employee Workforce Analytics and redefining Employee Interface (EI) and refining Employee Experience (EX).

**Keywords:** AI, AR, CHRO, DL, ML, EC, EE, EI, EX, HCBA, HCI, HCM, NN, VR

#### **1. Introduction**

#### **1.1 Information Technology parlance 'AI Powered HCM - The Start and Syntax'**

Artificial intelligence (AI) is the new electricity and has a transforming power to change the way of life and walk of work [1]. The Intelligent Virtual Assistants *viz., Alexa*, *Siri*, *Google*, *Jovi*, *Knockout Bot* and *MiHCM*, permeate everywhere and every sphere of personal as well as professional life [2]. The growth of AI by 16.4% in 2021 (\$327.5 billion) year-over-year and expected to break \$554.3 billion mark with a five-year Compound Annual Growth Rate (CAGR) of 17.5% even at times of uncertainty, resilience and amidst COVID-19 promisingly send signals to human society that AI is always-on and always-me for the welfare, wellness and well-being of the human race at times of need and exigencies [3].

Artificial intelligence (AI) evolved from the realms of science fiction and emerged as a plug-and-play technology with immediate returns [4]. AI stimulates the human cognitive power by the application and adoption of Machine Learning (ML) (Python & MATLAB), Deep Learning (DL) (Caffe) and Neural Networks (NN).

The Internet of Behaviour (IoB) (Gartner), DNA Data Storage (Microsoft), Neuromorphic Automation (Intel), Quantum Computing (IBM), Hybrid Cloud (Oracle), Augmented Humans (Amazon) and Emotional Experiences (Pymetrics) are evolving and emerged as a few Proofs Of Concept (POC) for Gen-Nxt. The AI (1.O & 2.O) and Analytics (*Diagnostic*, *Descriptive*, *Predictive*, *Prescriptive* and *Integrated*), Hybrid Cloud and Crowd, Digi-Assistants and Chabot's, etc., amplify the performance, productivity and predictive power of 'Human Capital' thereby winning the hearts and minds of the workforce in the workspace.

The digi-era is evolving into an intelligence era and '*Cloud*' became the cornerstone for all intelligent enterprises. The waning of 'Enterprise Resource Technologies' (*R/3 Legacy Systems*) and waxing of 'Dynamic Technologies' *viz.,* Artificial Intelligence (AI), Deep Learning (DL) and Machine Learning (ML) reshaped, redefined and rewrite the concept of 'Human Capital Management (HCM)'.

The ML and Neural Networks assess, develop and predict the cognitive power of 'Workforce' in a rationale and systematic manner. The prominent Neural Networks *inter alia* include the following: (i) Neural Networks and Multi-Nominal Logistic Regression Model [5], (ii) Seasonal Moving Average (SMA) [6], (iii) Artificial Neural Network Analysis (ANNA) [7], (iv) Artificial Neural Network (ANN) Choice Modelling [8], (v) Neural Networks using the Barone-Adesi and Whaley (BAW) American Model [9], (vi) Feed Forward ANN [10], (vii) Elman & NARX Neural Network and a Back-Propagation Algorithm [11], (viii) Artificial Neural Networks (ANNs), and Support Vector Machine (SVM) Models [12], (ix) Cloud Computing, Machine Learning, and Text Mining [13], (x) AI and Robotics [14], (xi) Feed-Forward Neural Network Model estimated with Backward Propagation (NNBP), and Feed-Forward Neural Network Model Estimated with a Genetic Algorithm (NNGA) [15], (xii) Probabilistic Neural Networks (PNN) [16] and (xiii) Artificial Neural Networks (Feed Forward and Back Propagation) [17] to deal with productive performance and effectiveness.

AI is seemingly everywhere, red-hot right now, contributing \$15 trillion to the world economy and amplifying the Society (*Humans 2.O*), Service (*Cyborg Concierge*) and augmenting Management (*C-Suite*). Industry-4.O is augmenting, auguring and accelerating the power of AI and HCM embraced the algorithms of AI. Automation permeates everywhere and has a positive impact on work and the workforce. The digi-operations make the work more interesting, smart and simple and also providing opportunities for career advancement and enrichment [18].

## **2. Human Capital Management (HCM): the premiere**

The phrase 'Human Capital (HC)' can be defined as the productive wealth embodied in labour, skills and knowledge and refers to any stock of knowledge either innate or acquired characteristics of a person [19, 20]. The Human Capital is an intangible asset and the most valuable of all capital assets measured in terms of the economic value of a worker's experience and skills [21, 22]. It has the attributes and competencies of a population along with physical and intelligent capital contributing to the economic productivity and prosperity [23–26]. The 'Human Capital' as always a top challenge and 'Human Talents' are ever scarce resources even today.

The 'Human Capital Management (HCM)' is a data-driven analytical function to resolve all critical issues and cultivate reasoning skills [27]. 'Data is the New Oil for Gen-Nxt' and without good data no planning and no modelling, no policy-making was made led to poor decisions either behavioural and/or policy [28]. The 'Human Capital Management (HCM)' evaluates the policies and practices of 'People Resource Management' that creates a value. People Resource Management is a

high-level strategic, investment and operational initiative that deals with the issues that are critical to organisational success and imply a causal link between people management and business success [29–31].

The HCM is about creating and demonstrating a value to an organisation by way of great people management with the great people. The HCM focuses on the set of practices related to 'People Resource Management' providing specific competencies and capabilities that create organisational value and meet the specific needs of an organisation [32]. These practices are related to (i) Workforce Acquisition, (ii) Workforce Management and (iii) Workforce Optimization. The HCM measures the value of 'Human Capital' in terms of stock of accumulated knowledge, skills, experience, creativity and other relevant workforce attributes for the purpose of 'Organisational Development' [33].

The Intelligent HCM (IHCM) architecture is based on AI, ML, Neural Networks and DL that deal with automation of routine HR tasks, deliver personalised experiences, and gain actionable and operational insights from HR Data Bank. The digitalization moves make a quantum leap in reinventing, redefining and refining the Employee Interface (EI) and Employee Experience (EX).

The centennial and one-time life pandemic COVID-19 will have a lasting impact on the future of work. The effects and strains of extraordinary challenge touch the human lens and confined the role of CHROs' to mere 'Listening'. The applications and adoptions of Human Capital Management (HCM) refined and reframed and HCM emerged as a 'New Behavioural Data Science' that considers and analyses the opinions, feelings and views of the workforce. During this grim and gloomy situation, the HCM brings out the best from the collective humanity with an objective orientation of transforming the organisations from inside out and the bottom up. The COVID-19 altered the working conditions and Work From Home (WFH) became the new norm to navigate organisations through unchartered territory [34–37]. The HCBA and Integrated Analytics (IA) leverage the power of the workforce in a real-time scenario and undoubtedly resolve all HCM issues in the realm of Human Capital Intelligence (HCI) [38].
