Balancing the merits and demerits of Artificial Intelligence in Human Resource Management

Many organisations have embraced Artificial Intelligence (AI) in Human Resource Management (HRM) to conform to technological and competitive trends. However, integrating AI without a proper understanding of its merits and demerits can impede the organization's ability to fully benefit from its advantages. A systematic review was conducted to assess the merits and demerits of AI adoption in Human Resource Management, thereby helping organisations balance both sides. We used the Unified Theory of Acceptance and Use of Technology as a guiding framework. Of the 1757 articles screened, 93 peer-reviewed articles published in English between 2018 and 2024 were retained from several databases and analysed thematically using the PRISMA framework. Findings reveal that while there are several advantages to using AI for HRM functions, it comes with some challenges. The merits of AI in HRM include streamlined HR processes and functions; strategic and competitive advantage; organisational performance; cost-saving benefits; accuracy, transparency, and consistency; real-time information; employee engagement and workplace relationships; ease of use and time-saving benefits. The demerits of AI in HRM include cost; limited computing power, capacity, and IT infrastructure; lack of transparency, explainability issues or black box; bias, lack of fairness and inclusivity; lack of information security and privacy; integration challenge; AI Hallucination; inconsistent and incorrect advice; inability to perform reasoned or strategic tasks; contextual inflexibility; ethical concerns; job monotony, insecurity, anxiety and job stress; resistance towards AI; limited expertise; lack of human connection and collaboration; lack of human control; and lack of communication. Organisations need to consider both the merits and demerits of the AI tool and find the right balance before implementation.