Impact of AI on Human Capital: In Context of Malaysia

This research study analyzes the impact of AI on human capital in the context of Malaysia. It explores the conceptual understanding of AI and human capital, addresses the effect of AI on human capital, and recommends AI strategies to improve human capital.

Running head: RESEARCH
Impact of AI on Human Capital: In Context of Malaysia

RESEARCH
Acknowledgement
Abstract
TOC
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Chapter 1: Introduction
1.1. Background of the study
Artificial Intelligence (AI) is a process of simulation of human intelligence in machines
that are capable of mimicking human actions. The usage of AI has significantly transformed the
business processes by providing an effective means of problem-solving (Nilsson 2014). The
usage of AI is reflected in the increase in the number of online consumer chatbots and the
continuous use of smart technology (Russell and Norvig 2016). The usage of AI has changed the
process of business administration as well. Its implication in the development of advanced
products and effective monitoring of the services is quite prominent from the use of online
customer support systems and improvement in the customers' relationship management process.
The usage of AI in a business organization helps in absorbing a large number of data
generated, which in turn helps in simplifying the complex decision-making process. Business
organizations make use of AI to gain competitive advantage (Azar and Vaidyanathan 2015). It is
possible as better decision making can be observed within the organization at a leadership level.
The automated tasks further help the managers in saving time and increasing work efficiency.
AI is used in different organizations for improving their performance in different areas
such as business marketing, management of human resources, finance, and talent acquisition
(Sterne 2017). Furthermore, AI can be used for human capital management as well. Human
capital management is possible with the help of AI as it helps a business in automation of routine
HR tasks and can further help in management of the various factors linked with human capital
management (Acemoglu and Restrepo 2018). Thus, it can be indicated that AI can help in
shaping the HR process in a new manner by enabling the company to communicate effectively
with the job applicants. AI is a key driver for automation of the communication with the
applicants and sharing of the feedbacks with the candidates thus helping in gaining an efficiency
in terms of applicant assessment and interaction (Brynjolfsson, Rock and Syverson 2017). The
use of AI supports evaluation of people analytics which is an effective way for building people
relationship and business.
Artificial Intelligence in management of human resources can be described as appropriate
application of smart technologies to automate the existing and routine HR processes to gain an
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actionable insight to the HR data. The undertaken research aims in analysis of the role of AI in
management of human capital, in context of Malaysia.
1.2. Research Aims and Objectives
1.2.1. Aims of the study
The aim of study is to analyse the impact of AI on human capital.
1.2.2. Objectives of the study
On basis of the above identified aim, the key objectives of the undertaken research study
is identified-
RO1: To explore the conceptual understanding regarding artificial intelligence and
human capital
RO2: To address the effect of artificial intelligence on human capital
RO3: To recommend artificial intelligence strategies to improve the human capital
The success in fulfilling all the above identified research objectives will ensure research
success.
1.3. Research Questions
On basis of the research aims and objectives, the questions that are identified and
evaluated in the research are indicated as follows-
RQ1: What are the conceptual understanding of artificial intelligence and human capital?
RQ2: How artificial intelligence has an impact on human capital?
RQ3: which artificial intelligence strategies can improve human capital?
The literature review that has been undertaken in the research is linked with the identified
research questions.
1.4. Problem Statement
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Human capital management (HCM) is a process that aims in acquiring, training,
managing and retaining the employees of an organization so that their contribution to the
development and betterment of the organization is effective (Buzko et al. 2016). HCM is
therefore indicated as a process of upgrading the existing human skills to improve the working
process of the employee. Some of the key functions of human capital management include
planning, directing, controlling and organization of the skills and work processes of the human
resources of an organization.
AI has a significant role to play in HCM. However, there is significant literature gap in
analysis of the impact of AI on management of human capital. It becomes a necessity to address
the process in which the AI can help in management of human capital (Strohmeier and Piazza
2015). The objective of HCM is to ascertain the availability of a competent workforce in any
business organization and therefore, this particular research is justified. The undertaken research
is useful in addressing the impact of AI in management of human capital and further identifies
the strategies in which human capital management processes can be improved with the help of
AI (Plastino and Purdy 2018). The use of AI is gradually reinventing the process of managing
the human resources by allowing the entire HR team in focusing on the creative and the strategic
work processes. Thus, AI has a significant impact management of the human capital. However,
there is a gap in measuring the actual impact of AI in human capital. Thus, this research is
undertaken to address this gap.
1.5. Rationale of the study
Management of human capital has become an essential organizational need. The use and
application of AI is quite significant in increasing the efficiency of the process of management of
human capital. Since AI is an integral tool for business management, it becomes necessary to
evaluate the role of AI or its impact in management of human capital (Aghion, Jones and Jones
2017). The undertaken research is particularly significant as it has evaluated the concept and
need of HCM and the importance of AI in effective management of human capital.
HCM is associated with effective management of the human resource functionalities of
an organization. The combination of AI with these HR functionalities mainly has a promising
impact on management of employee engagement. Thus, the combination of HR practices with
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the use of AI will possibly indicate business improvements. Thus, the findings of this particular
study will be helpful for business organizations in redesigning their business strategies and
increasing the business efficiency.
1.6. Research Significance
The research would be significantly important for the business organization to design
effective business management strategies. The research aims in analysis of the impact of AI in
human capital (Hoffman 2016). This research will therefore recommend effective strategies in
management of the human capital and will recommend methods in which the business processes
of an organization can be improved by making use of AI. The undertaken research will be
beneficial for the research audiences in understanding the connection of AI with human capital
(Brynjolfsson and Mcafee 2017). The findings of the research can be used by different
companies to evaluate the process in which human capital can be effectively managed and the
can be improved for increasing the overall work processes of the organization. Thus, performing
a research in this field is justified.
1.7. Structure of the Study
This section will provide a roadmap to structure of the proposed research study. The
entire research is divided into five distinct chapters for effective fulfilment of the research aim
and the research objective. The roadmap to the undertaken research is indicated as follows-
Chapter 1: Introduction- The introduction chapter introduces the readers to the research topic,
aim of the research and the research questions based on which the entire research study is
designed. This chapter is important for providing the background information of the study.
Chapter 2: Literature Review- This chapter is integral to evaluate the existing literature in the
field of research. The second chapter of the study aims in finding answers to the research
questions identified for the study. It further provides an idea of the conceptual framework for the
research and establishes a link between the current research and the existing researches in that
field.
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Chapter 3: Research Methodology- This chapter is important to outline the tools and techniques
that can be used in a particular research. The choice of appropriate tools and techniques ensure
research success and therefore this chapter holds a significant importance in the entire research.
Chapter 4: Data Analysis and Discussion: The data analysis chapter shows evidence of
collection of data from primary and/or secondary sources. The data analysis method opted in
chapter 3 is chosen to analyse the research data and the findings of the data analysis is
documented in this chapter. Thus, this particular chapter is quite important in analysing the
success of the undertaken research.
Chapter 5: Conclusion and Recommendation: The findings of the research study is outlined in
this chapter and recommendations are provided on basis of the obtained result. This chapter is
the last chapter of the research.
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Chapter 2: Literature Review
2.1. Introduction
Literature review can be described as the process of evaluation of available literature in a
particular topic. Literature review is an important consideration of a research as it evaluates the
existing literature in the field. Literature review generally denotes a critical analysis of a
published body of knowledge which in turn helps in better analysis of a research. In this
particular research, review of the existing literature in the field of artificial intelligence and
human capital management are evaluated to address the research questions that are identified at
the beginning of the research.
In this literature review, the detailed concept of AI is discussed to establish its benefits in
business organization. The main focus of the literature review is to extract a significant amount
of secondary data to address the questions identified in the research. In the following section the
existing literature in the field of artificial intelligence and human capital are evaluated in relation
to the identified research questions.
2.2. Artificial Intelligence Human Capital: Exploring the concept
2.2.1. Artificial Intelligence
According to Nilsson (2014), artificial is a sub part of computer science that is mainly
concerned with the process in which computers act intelligently in wider realms. AI is important
as it helps in easier management of the complex decision making process by easier management
of large amount of data generated as a result of daily business operations. This is one of the
primary reason behind computer learning being the future of all the decision making process.
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Figure 1: Different components of AI
(Source: Nilsson 2014)
Russell and Norvig (2016), indicate that that AI is the process of simulation of human
intelligence in machines that is capable of thinking as human and mimic their action. AI helps in
exhibiting the traits of human behind including the process of problem solving and decision-
making. AI is a branch of computer science that emphasizes on development of machines that
are capable of working like human. The AI enabled smart machines that are used in management
of the business processes are capable of speech recognition, problem solving, leaning and
planning the entire process. In this way, AI has become an integral business process.
Figure 2: Demonstrating importance of AI in business
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Ghahramani (2015), argues that the ideal characteristics of AI is its ability of
rationalizing the key action to achieve a specific goal. Since Ai operates on the principle of
human intelligence, it can be made use to perform all the human related activities in a business
organization. The primary goals of making use of AI is to include learning, reasoning and
perception. Copeland (2015), indicated that AI is continuously evolving that benefits different
business organization. The application of AI is significantly large and endless in context of
business organization and is capable of performing various critical functionalities, which include
carrying out surgical procedures in operating rooms. AI has significantly large application in
financial industry as well. The different application of AI mainly include streamlining the
business processes to make the entire trading processes easier. Thus, it is proved that AI is
mostly used for simulation of human intelligences in machines. The application of AI can be a
simple task oriented or can be complex as well.
Brundage et al. (2018), analyses the key security concerns linked with the use of AI in
business organization. The key security issue linked with the use of AI is that the data stored in
the IA systems can significantly affect people’s privacy. However, with various technological
advances in the field of AI, it is possible to manage the key security issues and concerns. Apart
from security issues, another issue linked with the use of AI include the negative effect of AI on
human employment. A number of business organization across the globe are looking for ways of
automating certain jobs by making use of intelligent machines. This is a key ethical issue linked
with the use of AI.
2.2.2. Human Capital
Goldin (2016), describes human capital as a stock of skills that are possessed by labour
force. In business context, human capital is mainly defined as a knowledge, experience and skill
of an employee. Human capital has an ability of influencing the productivity of a business
organization and therefore increasing focus provided in understanding its concept. It is an
intangible asset of an organization and therefore, effective management of human capital
becomes a necessity. Proper management of human capital is needed to achieve the set business
goals and also for mainlining the competitive advantage. The productivity and the profitability of
an organization is largely affected by the process of management of human capital.
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Figure 3: Showing strategy of human capital Management
(Source: Jarrahi 2018)
Lin et al. (2017), outlines the role of effective management of human capital in gaining
competitive advantage. Human capital management (HCM), is significantly related to human
resource management and the process of strategic human resource management within an
organization is related to the concept of HCM. Human capital refers to the explicit and the
implicit knowledge possessed by the employees of an organization. Proper management of
human capital is integral for an organization to achieve competitive advantage. Thus, the concept
of human capital enhancement comes into play (Jarrahi 2018). The concept of HCM is
associated with deployment and retention of skilled employees that enhances the work processes
within an organization. It is quite essential to manage the employee productivity and
commitment to ascertain maximum profit within a business organization. Therefore, the concept
and importance of human capital is quite important from business and organizational context.
Hollenbeck and Jamieson (2015), indicate the dependencies associated with human
capital management. There are various factors that affect the management of human resources
and human capital. The authors, further outline the role of social network analysis is
management of human resources within an organization. Social network analysis is considered to
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be an effective process of management of the human resources within an organization. Prior to
appointment of a candidate the social network analysis tools help in gaining an idea about the
candidate (Landon-Murray 2016). This method is effective in controlling certain major aspect of
human capital which is not fully understood. An integral role of human resource management or
human capital management in any business organization is to identify the knowledge base of
existing employees and also the new employees to work on their skills and processes. Therefore
HCM play a significantly important role in understanding the human resources of an
organization and further helps in management of the key processes.
2.3. Artificial Intelligence and Human Capital
Artificial Intelligence has a significant impact on management of human capital within
the business organisation. Pan (2016), outlines advances in the field of artificial intelligence.
Recent advances in the field of AI enforces rapid transformation in business organization.
Human capital management can be effectively propelled with the help of human capital
management and as AI enables the managers to effectively rack the employee performances their
key skills and the issues that might be faced by the human capital of an organization. AI play a
critical role in the recruitment process as well. The technological advances in the field of AI
helps in streamlining and automating the major work processes and work flow within the
business organization. This ensures effective information management as well.
Hoffman (2016), defines HCM as the usage of smart technologies including AI and
machine learning to automate the business processes. Use of smart technology act as a
foundation of AI and usage of smart technology can significantly affect the human capital
management process. AI has a positive impact on management if human capital within an
organization mainly because the use of smart technologies can certainly reduce the complexity of
the HR outcomes of an organization. AI further helps in collection and documentation of a wide
range of data sets in human resources. The smart AI technologies can further help in predicting
the capability of an employee of an organization.
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Figure 4: Use of AI in human capital Management
Boudreau and Cascio (2017), outlines the importance of human capital analytics in
ensuring business success. On basis of the findings of the human capital analytics, the training
needs of the employees can be comprehended to ensure maximum productivity. The use of AI is
quite significant in simplifying the complex HR operations by assisting the manager in choosing
the perfect candidate for a job. The use of AI is significant in effective performance management
as well. AI helps in easier identification and in prediction of the key needs of the employees thus
helping in effective human capital management. Thus, the use of AI in human capital
management not only helps in improving the work processes of an organization, but also works
for determining the employee benefits. The process of HCM by making use of AI is linked with
effective administration of the core organizational processes. Therefore, it can be indicated that
AI has the capability of acting throughput the entire process of human capital management.
Human capital management is directly linked with AI since AI provides an effective
terms in accessing the key information needs of an organization thereby helping in management
of the organizational effectiveness. There is a significantly large number of HR teams and
executive leadership teams that comprehends the human resources needs of a business
organization. AI has the capability of improving the business processes of every sector that helps
in effective management of business operations and business functionalities. It is needed to help
the employees and the business owners to know about the information needs within the
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organization. AI has the capability of human capital management as the use of proper algorithms
can effectively help in managing and mimicking the human intelligence. AI is a technology that
enables a computer to adapt to the changes in the obtained data. The use of AI helps in predicting
the business needs within an organization on basis of the set business objectives (Klumpp 2018).
AI has the capability of influencing the human resources of modern enterprises as it offer a huge
opportunity for the AI software.
AI helps in effective decision making by providing an insight to the key operations
running within the organization. In the area of human resource management empirical evidences
can be provided in understanding the key needs of the organization (Osoba and Welser IV 2017).
The human analytics helps in management of development and learning opportunities in business
organization. AI helps the employees in management and improvement of the skills of other
employees. One of the most significant benefits of use of AI in management of human resources
include management of the recruitment process (Makridakis 2017). There is no denying the fact
that HR has to put a lot of effort in shortlisting an applicant. AI significantly helps in
management of the critical administrative tasks that helps in effective automation of the major
recruitment processes (Klumpp 2018). With the help of AI, HR can offer timely and accurate
delivery of critical information with efficiency. AI can further help in elimination of the
unwanted human bias and is known for providing support to the repetitive tasks. The use of AI
has helped in prospected transform and training of human capital management system. Thus, it
can be said that AI helps in effective integration of the work processes and can further increase
the work efficiency.
Brynjolfsson, Rock and Syverson (2017), argues that HRs generally has to spend a lot of
time on the repetitive tasks that takes a lot of time and effort. AI powered tools can help in easy
accomplishment of these tasks. Regular and low value tasks can be easily identified with the
help of AI which enables the managers to focus on the other strategic and productive works that
need an interpersonal approach. Employee retention is a critical job. With the use of AI tools it
becomes easier for the mangers to indicate if an employee is planning to leave a company. Thus,
it can be said that the use of AI tools significantly helps in enhancing the core HR processes
running within a business organization. These processes encompasses the process of increasing
compliance, measurement of the employee engagement and automating the on board process in a
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company by assessing the suitability of a candidate in an appropriate manner. It is one of the
primary reasons behind a number of business organization across the globe are keen on adopting
AI in promoting market research. AI recruitment and the other intelligent learning platform are
mainly developed to revitalise the key HR functions, which significantly helps in management of
the organizational workforce in a more prominent manner.
According to Strohmeier and Piazza (2015), it is necessary to understand the process in
which AI is transforming human capital management to understand its actual impact on the
business organizations. AI has significantly changed the process in which business organization
run frequent report of creation of products and services. Technological advances can be seen in
customer chatbots and in smart technology devices that helps in effective improvement of
business strategies and customer relationships.
AI is seen to affect several areas associated with internal business and marketing, from
human resource management and in management of customers; relationship. Therefore, it can be
indicated that AI mainly has a positive impact on human capital as it ascertain effective human
capital management (Agrawal, Gans and Goldfarb 2018). AI is further seen to affect a number of
areas in internal business starting from marketing to development of business. Even the
employee recruitment process is management by AI. This indicates that AI has already shaped
the HR processes of a business organization.
It is integral to evaluate whether AI has the potential of changing the human capital
management systems (Mata et al. 2018). AI has affected the process of human capital
management in several ways. Some of the key changes that AI has brought in human capital
management are indicated as follows.
Reduced Bias: Employee can go through different training needs for management of the
best practises in reducing bias. AI technology is capable of working through the human capital
management process that further helps in reducing the bias (Nenkov et al. 2016). Reducing the
bias helps in reducing the impartiality in hiring process as the hiring is done on basis of the skills
and experiences of an employee.
Better Employee Insights: Use of effective AI tools in human resource management.
Effective human resource management is necessary as people are the most valuable and
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expensive resource of a business. This is the primary reason why employees are termed as
human capital. Retaining a talent in an organization is important as it requires significant effort
in training new employees. Employee retention is easier with the help of AI tools since it helps in
providing a better employee insight. AI helps in management of human capital by providing
ways for gathering and analysing solicited as well as unsolicited data of an employee.
Improved Training: The use of AI tools in management of human capital further
provides customization and personalization of the key business processes. AI has the potential of
changing the process of management of human capital by gathering the key information needs
related to the interest of an employee, their career and goals (Dignum 2017). Accordingly, this
data further helps the management in designing the key training processes for the employees
which further helps in employee retention (Plastino and Purdy 2018). One of the key processes
associated with the use of AI in management of human capital is to develop effective systems
and more focused workplace. This provides the business and stakeholders to provide employees
the best foundation they could get.
Thus, it is established that AI helps in analysis of both solicited and unsolicited employee
data for better business retention. Effective training processes helps in employee retentions and
public analytics data helps in understanding the human relations in an effective manner.
2.3. Strategies of Using AI in Improving Human Capital
AI has a significant effect in management of human capital as the automation of the work
processes provides the business organization with an access of the key work processes running
within the organization. The use of AI software in management of the different business
processes enables an organization to reduce the human labour and also the human error. The use
of AI helps in effective management of certain critical and core organizational performances
(Liebowitz 2019). It provides the company with an effective means of knowing their employees
in a better way. However, every business organization needs to identify the core organizational
processes and the process in which the core organizational processes within the organization can
be improved. Since AI helps in easier coordination and organization of the work processes it is
necessary to make an appropriate use of AI in management of human capital.
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According to Acemoglu and Restrepo (2018), every business organization need to design
effective strategies to make an effective use of AI tools and techniques that can improve the
exiting business processes and can also help in management of the human resources. Ai mainly
helps in effective tracking of the HR processes thus contributing to management of basic HR
functions and also helps in management of the human resources.
One of the key strategies of using AI in business processes is to develop smarter products
and services that can help in increasing the business efficiency and can help in automating the
repetitive tasks within the organization (Ransbotham et al. 2017). Since the repetitive tasks are
automated, it is easier to reduce the human labour. Automation in the business process helps in
exploring the growth of artificial intelligence in business and its subsequent application in
management of the human resources. AI is considered to be a key growth factor linked with
business operations within an organization. Use of AI contributes to development of an effective
design in management of the key business processes (Dhar 2016). One of the key strategies to
make an appropriate use of business process is to ensure that the employees of the organization
are having an accurate idea and knowledge of the key business processes running within the
organization. It is necessary to make a correct usage of the AI tools to evaluate better outcomes.
AI supports the HR manager in improving the organizational productivity by providing an
insight to the key work processes of the organization. Appropriate use of AI mainly helps in
effective demonstration of the key needs of an organization.
According to Acemoglu and Restrepo (2018), one of the useful process of designing
effective strategy of making a correct use of AI is to ensure that the managers of the business
organization are having a key understanding of the organizational needs. It is integral to
understand that having a clear idea of the basis organizational needs can help a manager in
designing effective organizational strategies.
The effective use of AI in management of human capital is further subjected to proper
knowledge management within the organization (Wirtz, Weyerer and Geyer 2019.). Employees
are required to have an adequate knowledge of the key organizational processes and the use of
AI tools which can help in proper management of human capital. Thus, it is possible to improve
the human capital with the help of AI.
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The data obtained from the business management tools of AI helps in understanding the
behaviour of an employee. This in turn helps in understanding the needs of the employee within
an organization (Scherer 2015). This in turn helps in effective workforce planning and also helps
in designing effective strategies of human capital management. Another effective strategy of
managing human capital includes effective management of taken acquisition (Kaplan 2015).
Talent acquisition forms an effective process of business management within an organization.
The employee recruitment process is further improved with the help of AI. AI mainly helps in
automation of the recruitment process through machine learning (Dutta 2014). Thus, AI helps in
designing effective strategies of recruitment of the employees and further streamlines the entire
recruitment process. The process of on boarding of the employees are streamlined with the help
of AI.
2.4. Research Gap
The undertaken study aims in evaluation of the strategies that can help making use of AI
in management of human capital management of an organization. Although a lot of researches
have been performed to analyse the benefits of making use of AI, there are few researches that
talks about the strategies that can be implemented to make an appropriate use AI to manage the
human capital. The undertaken study aims in addressing the various strategies that can help in
easier implementation of AI in different business processes running within the organization
including management of the key HR functionalities. The undertaken research is expected to
identify the main strategies of making an effective use of various tools of AI in management of
human capital. The main focus will be on the business organizations of Malaysia. The research
intends to find out the process in which AI can be used in simplifying the complex business
processes running within an organization. The research further intends to establish the key
benefits of using AI in management of the key business processes of an organization. The study
further aims in analysis of the basic requirements needed to address the key information need of
an organization. The application of artificial intelligence can have both positive and negative
effect. Through this particular research the researcher analyses the key business benefits that an
organization can expect in while investing in modern AI technologies. Thus, the undertaken
research study is justified and the success of the research is largely dependent on collection of
primary and the secondary data and accurate analysis of the collected data.
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2.5. Conceptual Framework
The Independent variable of the study- Artificial Intelligence
The Dependent Variable of the Study: Human Capital
The research aims in analysis of the strategies of implementation of Ai in human capital.
The conceptual framework of the research illustrating the dependent and the independent
variable are indicated as follows-
Figure 5: Illustrating the Conceptual Framework
The research is designed in such a way to address the impact of artificial intelligence in
key business processes of an organization. One of the key business processes of an organization
involves management of human capital. Finally the research establishes a link between artificial
intelligence and management of human capital. The research is successful in identification of the
impact of artificial intelligence on human capital and the process in which human capital can be
effectively managed with the help of AI.
2.6. Chapter Summary
The literature review chapter forms the basis of collection of secondary data for the
research. The existing literature in the field of artificial intelligence and management of human
capital is evaluated to understand its impact on human capital management. The evaluation of
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the secondary sources helps in identification of the key work processes related to management of
human capital and its relation with artificial intelligence. In the literature review chapter, the
concept of artificial intelligence is evaluated and the importance of human capital management
in an organization is illustrated. It has been established that there is a significant impact of
artificial intelligence in management of human capital. The chapter further establishes the need
of simplifying the HR processes within an organization. It is imperative for a manager to know
the employees and observe their behaviour in effective management of the human resources. AI
tools and techniques are mainly in business organization to manage the key organizational
processes including the critical HR functionalities. Thus, it can be deduced that the business
organization of Malaysia can make an effective use of AI in management of the core HR
processes running within an organization. The data obtained from the literature review form the
basis of collection of primary data for the research. The review of the literature was needed in
this research to identify the research gap and to provide justification for the undertaken study.
The undertaken literature review further outlines the key strategies that can help in management
of human capital with the help of AI.
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Chapter 3: Methodology
3.1. Introduction
Research methodology is a specific procedure or technique that can be used for
identification, selection and analysis of the information associated with a particular study. This
chapter provides an idea of the process in which a researcher need to conduct a particular study.
It is essential to identify proper research methods to guarantee the reliability of the study. The
study will be collecting secondary data to find answers to the identified research problems. The
aim of this chapter is to understand the process in which secondary data will be collected for the
study. The following sections identifies the philosophy of the research the methods chosen,
research design to be followed along with the process chosen for collection and analysis of the
data. Due to certain limitations, primary data was not collected for the study and the research is
based on secondary data. Secondary data is collected from different valid sources to understand
the impact of the artificial intelligence on human capital. To ensure collection of legitimate data,
only the previously published research books and journals are used as secondary sources for the
study. The detailed method outline for the undertaken study are discussed as follows.
3.2. Method Outline
The methods opted for successful completion of the study are indicated in the table
below-
Research Methods Chosen Approach
Research Philosophy Interpretivism
Research Approach Inductive
Research Design Exploratory
Data Collection
Process
Secondary Data Collection
Data Analysis Process Qualitative
Table 1: Showing the Methods chosen for the study
In the following sections, the description of the chosen methods are provided and the
justification of the approaches chosen for conducting the study are discussed.
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3.3. Research Philosophy
Research Philosophy outlines the process in which data about a particular phenomenon
should be gathered for a research, should be analysed and used. Epistemology encompasses
various philosophies linked with a research (Bryman 2016). Out of which, two major
philosophies are identified that are mostly used in academic researches. These philosophies
include positivism philosophy and interpretivism philosophy.
Positivism philosophy is mostly associated with the view that only factual knowledge can
be gained through observation and the researcher generally involves in collection and
interpretation of the research data in an objective manner. A positivism philosophy aims in
providing verified data from empirical evidence. It relies on scientific evidence
Interpretivisim is concerned with subjective interpretation and intervention of the reality.
This philosophy is mostly used by the researchers to interpret different elements of a particular
study and therefore, it can be indicated that interpretivism is known for integrating human
interest into a particular study (Bell, Bryman and Harley 2018). Interpretivism is mostly
associated with study of natural phenomenon which is not associated with the particular field of
study.
The philosophy chosen for this particular study in interpretivisim philosophy. The choice
of this philosophy is justified as the undertaken study aims in collection of the secondary data
and a qualitative method of data analysis is used (Patten and Newhart 2017). The use of
positivism philosophy is not chosen for the study as positivism approach is mostly used for
quantitative study. The research involves collection of secondary data and qualitative data
analysis and therefore the choice of interpretivism philosophy is justified.
3.4. Research Approach
Research approach generally outlines the plan and procedure that is used for collection,
analysis and interpretation of the collected data. The research approaches that are mostly used in
the study are inductive research approach and deductive research approach.
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Deductive Approach is mostly used for exploring a known theory and phenomenon on
basis of a given circumstances. Deductive approach is therefore associated with the formulation
of the hypotheses that is to be tested.
Inductive Approach on the other hand does not deal with testing of the hypothesis. This
research approach deals with observation which helps in reaching to conclusion (Tuffour 2017).
Since the proposed research is linked with collection of secondary data and analysis of the data
using qualitative tools, the choice of inductive approach is justified for the study.
3.5. Research Design
Research design is considered to be a framework of research methods and techniques that
are is mostly used by the researchers to develop a structure of the research. The research design
is mostly used for integration of the different components of a study in a coherent and logical
manner. The research design is a set of methods and processes that are used for collection and
analysis of the measures that are indicated in the research problem.
Research Design is mostly of two types, which include exploratory research and
conclusive research. The exploratory research mostly deals with exploring specific aspects of a
proposed study while that of conclusive research is mostly important for verifying the specific
insights and aid of selection of a particular course of action (Singh 2015). Conclusive research is
mostly divided into two categories, which include descriptive research design and casual
research design.
This particular study involves the use of exploratory research design. The choice of
exploratory research design is justified for the study mostly because it provides a conclusive
evidence and better understanding of the problem to be solved (Jebb et al. 2017). This research
design is justified for the chosen topic as it aim of the study is to analyse the impact of AI on
human capital. The researches that involves investigation of a particular problem can be
effectively carried out by exploratory research design and therefore the choice of this particular
research design is justified.
3.6. Data Collection Process
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Data collection is an important part of a research and therefore importance and focus is to
be given to the choice of an appropriate method of data collection. There are two method of data
collection, one is primary data collection method and another is secondary data collection
method.
3.6.1. Primary Data Collection
The primary data collection method is associated with the collection of data from the
sources who have sufficient knowledge about the area of the research and the research problem.
Primary data collection is associated with primary research. Primary researches are conducted by
the researcher himself/herself. It is a method that is mostly used by the researchers to collect data
directly from different individual sources without depending on the data that can be obtained
from the previous researches that has been conducted in this field. Therefore, this data collection
method helps in collection of meaningful research data. Primary data can be collected by four
distinct methods which include interview, survey, focus group and observations.
Interview is an effective technique of collection of primary data and is mainly associated
with conduction of qualitative research. It is considered to be one of the most viable options of
primary data collection as in this method, the interviewer talks directly with the respondents and
notes down their views and information provided by them (Sylvia and Terhaar 2014.). The
interviews are normally conducted face to face or over telephonic method. Face to face
interview, however is more effective as the chances of data misinterpretation is quite less in that
particular method.
Survey is another effective method of collection of primary data from a large number of
participants. In this method, certain pre-set questionnaires are designed and shared with the
research participants and their responses are analysed using quantitative tools.
Focus group is a technique of collection of data from a small group of participant
(usually 6-10). This method is useful for data collection when expert opinion is needed for the
study.
Observation is a method that is used for recording reactions of people in a pre-
determined situation. This is a time consuming method of data collection.
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3.6.2. Secondary Data Collection
Secondary data collection is associated with secondary research which is a method of
using already existing data to increase the overall effectiveness of a study (Mayer 2015.).
Secondary data is collected from already published materials, such as research reports and
journals (Silverman 2015). Since secondary research is based on use of data that are already
available, it is possible to collect a large amount of data (Gibbs 2018). The data availability in
the secondary study is quite huge and secondary research provides a cost effective way for
collection and analysis of the data (Johnston 2017). However, one key disadvantage of this
method is that, since a large number of data is available, it might be difficult for the researcher to
find a specific information.
3.6.3. Method Chosen for Data Collection
The undertaken study has made use of secondary data to analyse the impact of AI on
human capital. For successful completion of the study various secondary sources are analysed to
understand the impact of AI on human capital. The aims in understand the process in which the
technology of artificial intelligence is affecting human capital. Therefore, the use of previous
researches in this field and their findings to interpret the impact of AI in human capital is
justified. Therefore, the secondary data is collected for the study (Cheng and Phillips 2014). A
number of previously published literature sources are evaluated to collect authentic data linked
with AI and human capital. The sources used for collection of secondary data include research
reports and journals along with books. The secondary data is collected for the study as there were
certain limitations associated with the collection of primary data. Hence, the choice of collection
of secondary data for the study is justified.
3.7. Data Analysis Method
The collected data of the research should undergo proper analysis which will help in
finding answers to the identified research question. There are two types of data analysis method,
which are qualitative data analysis method and quantitative data analysis method.
3.7.1. Quantitative Analysis Method
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Quantitative data analysis method deals with statistical analysis of the collected data. The
two methods of quantitative data analysis are descriptive statistics and inferential statistics
(Treiman 2014). Quantitative analysis method deals with mathematical data and therefore
reliability of the results obtained from this method of data analysis is quite high (Clarke, Braun
and Hayfield 2015). In this method of data analysis, researchers can expect to turn raw numbers
into meaningful data by incorporation of rational methods and critical thinking. The different
tools used for quantitative data analysis are excel spreadsheet, Microsoft access and SPSS.
3.7.2. Qualitative Analysis Method
Qualitative data mostly refers to non-numeric information and therefore does not
involves the use of statistical data. There five different techniques of analysis of data using
qualitative approach (Bernard, Wutich and Ryan 2016). There are several methods of qualitative
data analysis which include content analysis, narrative analysis, discourse analysis, framework
analysis and grounded theory (Nowell et al. 2017). Framework analysis is an effective method
of qualitative data analysis and incorporates several tools such as thematic framework, coding,
charting and others.
3.7.4. Chosen Analysis Method
Qualitative data analysis method is chosen for the study as the study does not involve use
of any statistical data. The study involves collection of data from secondary sources and
therefore, the collected data could be appropriately analysed using qualitative tools (Javadi, and
Zarea 2016). The particular study has made use of thematic analysis tool to understand the
impact of AI in human capital in context of Malaysia.
The choice of thematic analysis tool is justified for this particular study as it is
considered to be one of the most common forms of analysis associated with a qualitative
research (Castleberry and Nolen 2018). Thematic analysis method mostly emphasizes on
identification, analysis and interpretation of patterns or themes within the collected data and
therefore, the choice of this tool for analysing the impact of AI on human capital is justified.
Thematic analysis method is used in the study to analyse the effect of AI on various factors
specifically on AI. The analysis of the research problems in a thematic manner has helped the
researcher in fulfilling the identified research objectives. Thus, the choice of this particular
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analysis method is justified (Braun et al. 2019). The impact of AI on human capital is evaluated
on basis of certain themes that were identified from the data collected from the secondary
sources. The literature review has provided a large data set of secondary data (Terry et al. 2017).
Certain themes and patterns are identified from the collected secondary data which are analysed
in this study to fulfil the research objectives.
3.8. Ethical Consideration
The research has followed all the necessary ethical considerations related to the study.
The data collected for the study is only used for the research study. The undertaken research
study involves collection of secondary data (Connelly 2014). The works of the other researchers
that are used in the study are properly referenced. The confidentiality of the collected data is
maintained and anonymity of all the research participants associated with the study is
maintained. The research has been conducted in an ethical manner and permission has been
taken from the University prior to the start of the research (Cacciattolo 2015). Ethical
consideration can be specified as one of the most important parts of the study. Although the
research does not involve collection of primary data, acknowledgement of the works of all the
authors in the dissertation using an appropriate referencing system is done.
3.9. Chapter Summary
Research methodology can be described as a specific process or technique of
identification, selection and analysis of the topic of a research. The methods section is important
as it allows a reader to critically evaluate the overall validity and the reliability of a research.
Methodology in a research can be described as a philosophical framework of conducting a
research study. In this chapter, the methods, approaches and the research design are highlighted
to provide an effective understanding of the key tools and techniques that are used in the
research.
The research methodology chapter identifies the specific tools and techniques that are
used to successfully complete the study. Identification of an appropriate research tool was
necessary to conduct the research in an effective manner. The chapter summarises the use of
various tools and techniques for effective collection and interpretation of the data related to the
study that deals with analysis of the impact of AI on human capital. The chapter provides a
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comprehensive idea of the research approach, research method and the design chosen for the
study. This particular study has made use of interpretivism research philosophy and inductive
research approach. The research design method chosen for the study is exploratory. The research
has made use of secondary data. Primary data is not obtained for the study due to certain
limitations. However, the research involves use of large number of data from secondary sources.
The data collected from the secondary sources are analysed using qualitative data analysis
method. The study does not involve the use of any primary or statistical data and hence the
qualitative approach of data analysis is chosen for the study. The research methodology chapter
further justifies the use of thematic analysis for the research. The chapter provides an idea of
ethical considerations associated with the research. Ethics approval was taken prior to the start of
the research.
The undertaken research is a success mainly because the researcher has chosen effective
tools and techniques in ensuring that the undertaken research is a success. Identification of
research methodology is quite significant particularly because the appropriate methods helps in
easier identification of the behaviours and trends in variables. The key purpose of the undertaken
research is to analyse the impact of AI in management of human capital in context of Malaysia.
The justification against the choice of appropriate research methods are indicated in the reseach
methodology chapter.
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Chapter 4: Results and Analysis and Discussion
Chapter 5: Conclusion, Recommendation and Implication
5.1. Conclusion
5.2. Linking with Objectives
5.3. Recommendations
5.4. Limitations of research
5.5 Future scope of the study
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