EXAMINING THE IMPACT OF ARTIFICIAL INTELLIGENCE ON FOUR KEY HUMAN RESOURCE PRACTICES IN THE BANKING SECTOR OF PAKISTAN

Abstract

The purpose of this study was to examine the impact of AI on HR Practices in the banking sector of Pakistan. The specific objectives of the study were to determine how AI influences five key HR practices i.e., Recruitment and Selection, Training and Development, Performance Assessment and Talent Management. The study population consisted of all the banking sector employees working in public and private sector banks operating in the Khyber Pakhtoonkhwa province of Pakistan, so non-probability sampling technique and furthermore Convenience sampling was used to collect data from respondents. The sample size of 384 was selected as the most appropriate for our research and ultimately 374 responses were used for analysis and interpretation. Different statistical tests were performed to test the reliability, validity and normality of data. Correlation analysis was performed to test the relationship between variables while simple linear regression to check the direct impact of AI on HR practices. These study findings indicated that when AI systems are fully integrated into the HR practices it will result in the improvement of those practices and will overcome the issues related to these practices. Finally, the study recommends integration of technology acceptance factors as well as exploring social, environmental and risk factors that may have an impact on the relationship between AI and HR practices.

Keywords: Artificial Intelligence, Human Resource Practices, Recruitment and Selection, Training and Development, Performance Assessment and Talent Management.