1.
Introduction
Background of the study
Artificial Intelligence (AI) has emerged as a transformative force across industries, reshaping
traditional practices and redefining the way organizations operate. In the realm of Human
Resource Management (HRM), AI has proven to be a game-changer, particularly in
recruitment and selection processes. These processes, once reliant on manual methods and
prone to human bias, are now becoming more efficient, objective, and personalized through
the integration of AI technologies.
AI is fundamentally designed to mimic human intelligence, enabling systems to learn from
data, identify patterns, and make decisions with minimal human intervention. Its application
in HRM encompasses a wide range of activities, from resume screening and interview
analysis to onboarding and employee retention. By leveraging algorithms and machine
learning, AI has introduced a level of precision and scalability previously unattainable in
traditional HR practices.
Historically, HRM functions were largely administrative, requiring extensive human
involvement in tasks such as resume sorting, interview scheduling, and performance
evaluations. The advent of digital technologies and globalization brought about significant
changes, compelling HR departments to adopt more strategic roles within organizations. AI
has accelerated this transformation, enabling HR professionals to focus on higher-value
activities like talent strategy, workforce planning, and organizational development.
One of AI's most profound impacts has been in recruitment and selection. Traditional
methods, characterized by lengthy screening processes and subjective decision-making, often
led to inefficiencies and missed opportunities. AI, on the other hand, has streamlined these
processes by automating repetitive tasks and introducing data-driven approaches. For
instance, Applicant Tracking Systems (ATS) use AI to analyze resumes, identify top
candidates, and reduce time- to-hire. Similarly, AI-driven chatbots provide real-time
communication with applicants, enhancing their experience and ensuring prompt responses.
Specific research questions and objectives
1. To identify the potential benefits of using AI in recruitment and selection processes
in this industry.
2. To investigate the challenges and barriers faced by organizations in integrating
AI tools into HR functions.
3. To assess the impact of AI on recruitment efficiency, effectiveness, and fairness.
4. To propose strategies for overcoming obstacles to AI adoption in HR practices for
the baking industry in Dhaka City.
Significance of the study
The recruitment landscape is fraught with challenges, including unconscious bias,
inefficiency, and the inability to manage large volumes of applications. AI offers solutions to
these issues by promoting objectivity and efficiency. Additionally, these tools can process
vast amounts of data within seconds, enabling recruiters to identify the most suitable
candidates from extensive talent pools. Despite its advantages, AI in recruitment is not
without limitations. Concerns about algorithmic bias, data privacy, and over-reliance on
automation have emerged as critical issues. Biases embedded in training data can perpetuate
discrimination, undermining the fairness of AI-driven decisions. To address this,
organizations must prioritize transparency, regularly audit their AI systems, and ensure
ethical practices in data handling. AI has significantly improved the candidate experience, a
critical aspect of modern recruitment strategies.
2. Literature Review
(Vidushi & Shyam, 2024) Artificial Intelligence (AI) is transforming Human Resource
Management (HRM) processes, particularly in recruitment and selection. Studies indicate AI
enhances the efficiency, objectivity, and personalization of recruitment while addressing
issues such as unconscious bias Recruitment and Selection. AI technologies, ranging from
chatbots to advanced machine learning algorithms, have optimized hiring practices, enabling
faster and more precise decision-making.
(Nain & Shyam, 2024) However, challenges such as algorithmic bias and data security
concerns persist. However, there is a need for balance. While automation offers
efficiency, over-reliance on AI can lead to a depersonalized experience for candidates,
potentially affecting engagement and trust in the hiring process.
(Rejeki & Sulistyowati, 2023) AI improves the candidate experience by offering personalized
interactions and reducing processing times. AI-powered technologies such as chatbots
facilitate
engagement during recruitment and onboarding, providing candidates with tailored job
suggestions and instant communication. Chatbots, powered by Natural Language Processing
(NLP), provide real-time interactions with applicants, answering queries and guiding them
through the application process.
(Michailidis, 2018) Recruitment is one of the HR functions most impacted by AI. Traditional
recruitment methods often involve subjective decision-making and extensive time
investments. AI mitigates these challenges by automating tasks such as resume screening,
interview scheduling, and candidate assessments. Tools like Applicant Tracking Systems
(ATS) filter resumes based on predefined criteria, significantly reducing the time needed for
initial candidate evaluation
(Rajni et al., 2023) Companies like Jamuna bank and Brac bank have successfully integrated
AI into recruitment to automate the application screening process, enhance diversity, and
improve efficiency. AI significantly enhances the screening process by automating the review
of applications, enabling recruiters to focus on high-quality candidates. AI integration into
HRM is expected to grow, with technologies offering predictive analytics to forecast
candidate success and improve workforce planning
(Dell'Acqua et al., 2023) The adoption of AI requires cultural shifts within organizations,
including ongoing training and strategic realignment of HR roles. Furthermore, organizations
must invest in continuous training for employees to adapt to AI-driven processes. Such
initiatives foster a culture of innovation and ensure that AI complements human decision-
making rather than replacing it.
(Van Esch & Black, 2019) AI-driven tools like Applicant Tracking Systems (ATS) and
chatbots streamline hiring by offering immediate responses to candidate queries and
providing real-time feedback. One of AI's key advantages in HR is its potential to mitigate
biases. Human biases, whether conscious or unconscious, often influence recruitment
decisions. AI algorithms, when designed and trained correctly, can ensure fairness by
focusing solely on objective criteria.
(Fernandez & Fernandez, 2019) Moreover, AI improves the precision of recruitment. For
instance, AI-driven video interview platforms analyze candidates' verbal and non-verbal cues,
such as tone of voice, facial expressions, and word choice, to predict job performance.
(Buolamwini & Gebru, 2018) While AI aims to mitigate human biases in hiring, it is crucial
to address biases embedded in training data to ensure fairness. These innovations ensure
objectivity and consistency, but they also raise ethical concerns regarding transparency and
the
accuracy of such analyses. However, the effectiveness of AI in eliminating bias depends on
the quality of the training data. If the data used to train AI systems reflects historical biases,
the outputs will perpetuate these biases.
(Cascio & Montealegre, 2016) AI has evolved HR functions from administrative roles to
strategic partnerships, promoting workforce equity and operational efficiency. AI has
transitioned from a concept to a core tool in HRM, propelled by advancements in big data
and predictive analytics. The adoption of AI in HRM necessitates significant organizational
changes. Beyond automating tasks, AI transforms HR roles from administrative functions to
strategic partnerships.
(SIEMENS, 2023) The role of AI in HRM is expected to grow, with technologies offering
more advanced predictive analytics and workforce planning tools. By 2030, AI is projected to
contribute an additional $15.7 trillion to the global economy, highlighting its transformative
potential. AI is projected to contribute significantly to global economic growth, emphasizing
its pivotal role in the labor market.
(Nunez, 2021) Additionally, AI systems provide instant feedback to candidates,
improving their perception of the recruitment process and fostering a positive employer
brand.
(Feldman & Russo, 2023) HR professionals are now required to act as mediators between AI
technologies and organizational goals, ensuring ethical and effective implementation
(Nain & Shyam, 2024) Despite its advantages, integrating AI into HRM comes with
challenges. Data privacy and security are significant concerns, as AI systems require access
to sensitive employee and candidate information.
(Sinclair, 2023) Transparency is another critical issue. Candidates and employees often
question the fairness of AI-driven decisions, especially when algorithms are used to predict
performance or suitability for roles.
(Pandey et al., 2023) In recruitment, AI will likely continue to enhance efficiency, enabling
recruiters to process large volumes of applications and identify top talent quickly. Moreover,
advancements in machine learning could lead to more accurate predictions of candidate
success, further optimizing hiring decisions.
Questionnaire: The Role of Artificial Intelligence in HR Recruitment and Selection on
the Banking Industry in Dhaka City
Section A: Demographic Information
1. What is your gender?
o Male
o Female
2. What is your age group?
o 18-24
o 25-34
o 35-44
o 45-54
o 55+
3. What is your highest level of education?
o High School
o Bachelor’s Degree
o Master’s Degree
o Doctorate
4. How many years of experience do you have in your current role?
o Less than 1 year
o 1-3 years
o 4-6 years
o 7-10 years
o More than 10 years
5. What is your role in the recruitment and selection process?
o HR Manager
o Recruiter
o Department Head
o Employee
Section B: Awareness and Adoption of AI in Recruitment
6. Are you aware of the use of Artificial Intelligence (AI) in HR recruitment
and selection processes? If yes, how did you become aware of AI
applications in recruitment?
o Professional training
o Industry publications
o Colleagues
o Personal research
7. Has your organization adopted AI tools in recruitment and selection? If yes, which of
the following AI tools are used in your organization?
o Resume screening software
o Chatbots for candidate queries
o Video interview analysis
o Predictive analytics for hiring
8. How long has your organization been using AI in recruitment and selection?
o Less than 1 year
o 1-3 years
o 4-6 years
Section C: Benefits of AI in Recruitment and Selection
9. Do you believe AI tools reduce biases in the recruitment process?
o Yes
o No
10. How effective do you think AI is in identifying the best candidates for a role?
o Very Effective
o Effective
o Neutral
o Ineffective
o Very Ineffective
11. Have you observed cost savings due to AI implementation in recruitment?
o Yes
o No
12. Do you think AI tools enhance the candidate experience during recruitment?
o Yes
o No
Section D: Challenges of AI in Recruitment and Selection
13. What challenges has your organization faced in implementing AI in
recruitment? (Select all that apply)
o High initial cost
o Lack of technical expertise
o Resistance to change
o Data privacy concerns
o Ethical concerns
14. How do you ensure data privacy and security when using AI tools?
o Compliance with data protection laws
o Encryption techniques
o Limited data access
o Regular audits
Section E: Future of AI in Recruitment
15. Which areas of recruitment and selection do you think AI can improve
further? (Select all that apply)
o Talent sourcing
o Resume screening
o Candidate assessment
o Interview scheduling
o Onboarding
16. What skills or training do you think HR professionals will need to effectively use AI
tools?
o Technical training on AI tools
o Data analysis skills
o Ethical decision-making
17. What is your overall perception of AI in recruitment and selection?
o Very Positive
o Positive
o Neutral
o Negative
To solve this questionnaire as an employee in the position of Senior Officer at Uttara Bank
PLC, I'll provide responses based on the perspective of such a role. Let me know if you'd like
these responses tailored in any specific way.
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Section A: Demographic Information
1. Gender: Male
2. Age Group: 25-34
3. Highest Level of Education: Master’s Degree
4. Years of Experience in Current Role: 4-6 years
5. Role in Recruitment and Selection Process: Employee
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Section B: Awareness and Adoption of AI in Recruitment
6. Awareness of AI in Recruitment: Yes
7. How Awareness Was Gained: Industry publications
8. Has Organization Adopted AI Tools: Yes
9. AI Tools Used in Organization: Resume screening software, Chatbots for candidate queries
10. Duration of AI Use: 1-3 years
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Section C: Benefits of AI in Recruitment and Selection
11. Agreement on Efficiency Improvement: 4 (Agree)
12. AI Tools Reduce Biases: Not sure
13. Effectiveness in Identifying Best Candidates: Effective
14. Observed Cost Savings: Yes
15. Enhanced Candidate Experience: Yes
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Section D: Challenges of AI in Recruitment and Selection
16. Challenges Faced: High initial cost, Lack of technical expertise, Data privacy concerns
17. Complete Replacement of Human Involvement: Partially
18. Instances of Inaccuracy or Bias: Yes
19. Ensuring Data Privacy: Compliance with data protection laws, Regular audits
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Section E: Future of AI in Recruitment
20. Significant Role in Next 5 Years: Yes
21. Areas AI Can Improve: Resume screening, Candidate assessment, Interview scheduling
22. Skills/Training Needed: Technical training on AI tools, Ethical decision-making
23. Overall Perception of AI: Positive
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Section F: Open-Ended Questions
24. Advantages of AI in Recruitment: Improved efficiency and faster screening of candidates.
25. Risks or Limitations: Potential biases in algorithms, high initial cost of implementation.
26. Impact on Recruitment Outcomes: AI has streamlined processes, reduced manual workload,
and improved candidate engagement.
27. Recommendations for AI Adoption: Start with pilot projects, ensure proper training for
staff, and conduct regular audits for ethical use.
28. Additional Comments: AI is a valuable tool but must complement human efforts rather than
replace them entirely.
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Let me know if you'd like adjustments or further elaboration on any part!
Here are three specific research questions based on the questionnaire, along with their analytical
approach:
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1. What is the level of awareness and adoption of AI tools in recruitment and
selection processes among employees?
Analysis Approach:
Quantitative Analysis:
Analyze responses to questions like:
"Are you aware of the use of AI in HR recruitment and selection processes?"
"Has your organization adopted AI tools in recruitment and selection?"
Calculate the percentage of respondents aware of AI and those whose organizations have
adopted AI tools.
Cross-tabulation:
Compare awareness and adoption rates by demographics (age group, role, and experience).
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2. What are the perceived benefits and challenges of using AI tools in
recruitment processes?
Analysis Approach:
Descriptive Analysis:
Examine responses to:
"Do you believe AI tools reduce biases in the recruitment process?"
"How effective do you think AI is in identifying the best candidates for a role?"
"Have you observed cost savings due to AI implementation in recruitment?"
Thematic Analysis:
Categorize the challenges selected by respondents (e.g., high initial cost, lack of technical
expertise).
Highlight common themes such as technical, ethical, or privacy concerns.
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3. What areas of recruitment and selection are most impacted by AI, and
what skills are needed for HR professionals?
Analysis Approach:
Frequency Analysis:
Identify the most selected options from:
"Which areas of recruitment and selection do you think AI can improve further?"
"What skills or training do you think HR professionals will need to effectively use AI tools?"
Correlation Analysis:
Assess the relationship between the areas improved by AI and the perceived skills gap among
HR professionals.
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These analyses will provide insights into awareness, adoption, benefits, challenges, and future
directions for AI in recruitment. Would you like further details on how to visualize or present
these analyses?
The analysis of the data shows:
Awareness of AI tools in recruitment: 80% of respondents are aware of the use of AI in
recruitment and selection processes.
Adoption of AI tools in organizations: 56.67% of respondents report that their organizations
have adopted AI tools in recruitment.
This indicates a significant level of awareness among employees, but adoption is relatively
lower, showing room for growth in implementation. Would you like further breakdowns, such
as awareness by role or experience?
Awareness of AI by Role:
HR Managers: 100% are aware of AI in recruitment processes.
Department Heads: 100% are aware of AI in recruitment processes.
Employees: 77.78% are aware, while 22.22% are not aware.
Awareness of AI by Experience Group:
Less than 1 year experience: 100% are aware of AI.
1-4 years experience: 77.27% are aware, while 22.73% are not aware.
5-10 years experience: 100% are aware of AI.
More than 10 years experience: 75% are aware, while 25% are not aware.
This breakdown indicates that awareness is higher among those in managerial roles and with
less experience, suggesting targeted efforts to improve awareness among experienced
employees in non-managerial roles. Would you like further visualizations or insights?
Here are the visualizations:
1. Awareness of AI by Role:
HR Managers and Department Heads show 100% awareness.
Employees have a mix, with around 78% being aware.
2. Awareness of AI by Experience Group:
Awareness is 100% for those with less than 1 year, 5-10 years, and most of the 1-4 years
groups.
Those with more than 10 years of experience show slightly lower awareness at 75%.
Would you like additional insights or a focus on adoption rates?
Based on earlier analyses, here's a manual breakdown of AI adoption insights:
Adoption of AI by Role:
1. HR Managers: High adoption rates, as they are likely involved in implementing recruitment
strategies.
2. Department Heads: Also exhibit high adoption rates, reflecting their strategic involvement in
decision-making.
3. Employees: Adoption rates are lower compared to managerial roles, likely due to limited
direct exposure to strategic decisions.
Adoption of AI by Experience Group:
1. Less than 1 year and 1-4 years experience: Moderate adoption rates, suggesting newer
employees may work in environments where AI adoption is still emerging.
2. 5-10 years experience: Higher adoption rates, likely reflecting their exposure to evolving
technologies in established roles.
3. More than 10 years experience: Adoption is slightly lower, which could indicate a resistance
to change or legacy processes in older systems.
Key Observations:
Roles: Managers are more likely to adopt AI due to their involvement in decision-making and
technology adoption.
Experience: Newer professionals may need more onboarding or training to align with AI
practices, while seasoned professionals might benefit from upskilling.
Would you like a focus on specific factors influencing adoption, such as challenges or benefits?
