AI in human resource management: The limits of empiricism
This working paper examines the integration of artificial intelligence into human resource management across four core functions: recruitment, compensation, scheduling, and performance management. It introduces a three-parameter framework assessing AI systems based on their objectives, data, and programming, arguing that reductive metrics and opaque algorithms pose risks to workers and firms. The authors contend that an uncritical reliance on empiricism overlooks the limits of capturing complex human behaviour through data.
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Who issued it
Who it governs
This paper is for human resource professionals, researchers, policymakers, and employers seeking to understand the limits and risks of integrating artificial intelligence into workforce management.
What the document contains
This publication reviews how artificial intelligence is applied across four core human resource management functions: recruitment, compensation, compensation structure, scheduling work, and performance management. It analyses structural shortcomings such as poorly aligned objectives, biased datasets, and opaque programming, and outlines a framework for evaluating these technologies.
The document does not provide binding legal regulations, enforcement mechanisms, or prescriptive compliance checklists for software developers.
- AI adoption in human resource management is growing rapidly despite a lack of comprehensive assessment regarding its usefulness.
- AI systems in HR can be evaluated through a three-parameter framework: system objective, underlying data, and programming.
- Recruitment, compensation, scheduling, and performance management face significant legal, ethical, and practical risks due to reductive metrics and biased training data.
- An uncritical reliance on positivism and numeracy in HR has fostered unbridled optimism that overlooks the complexities of human behaviour.
- Effective implementation of AI in the workplace requires participatory, multi-stakeholder design involving HR professionals and workers.
· Abstract · About the authors · Introduction · 1 How did we get here? The rise of “people analytics” and managing workers through data · 2 The workings of AI systems: Objective, data and programming · 3 AI in HRM: Unbridled optimism · 4 What is an HR manager to do with AI? · Conclusion · References · Acknowledgements
How it scores
Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.
Enforcement
0/5Consequences and compliance mechanisms with real force
screening score · 2026-10-23
Impact Assessment
2/5Required assessment of an AI system's risks/impacts before or during use
As a public institution, the Treasury Board completed an Algorithmic Impact Assessment to identify possible risks from using the system.
Screening, Interviewing and Selection
screening score · 2026-10-23