The application of AI in digital HRM – an experiment on human decision-making in personnel selection

Abstract

Purpose

How to embed artificial intelligence (AI) in human resource management (HRM) is one of the core challenges of digital HRM. Despite regulations demanding humans in the loop to ensure human oversight of AI-based decisions, it is still unknown how much decision-makers rely on information provided by AI and how this affects (personnel) selection quality.

Design/methodology/approach

This paper presents an experimental study using vignettes of dashboard prototypes to investigate the effect of AI on decision-makers’ overreliance in personnel selection, particularly the impact of decision-makers’ information search behavior on selection quality.

Findings

Our study revealed decision-makers’ tendency towards status quo bias when using an AI-based ranking system, meaning that they paid more attention to applicants that were ranked higher than those ranked lower. We identified three information search strategies that have different effects on selection quality: (1) homogeneous search coverage, (2) heterogeneous search coverage, and (3) no information search. The more applicants were searched equally often (i.e. homogeneous) as when certain applicants received more search views than others (i.e. heterogeneous) the higher the search intensity was, resulting in higher selection quality. No information search is characterized by low search intensity and low selection quality. Priming decision-makers towards carrying responsibility for their decisions or explaining potential AI shortcomings had no moderating effect on the relationship between search coverage and selection quality.

Originality/value

Our study highlights the presence of status quo bias in personnel selection given AI-based applicant rankings, emphasizing the danger that decision-makers over-rely on AI-based recommendations.