Holmes Institute HC2101: Performance Management and AI in HR

This report examines the transformative impact of Artificial Intelligence (AI) on Human Resource (HR) practices across various sectors. It begins by exploring the evolution of AI, referencing the Turing Test and key advancements, and highlights concerns about job displacement. The report then delves into specific industries, including the autonomous car industry (focusing on Tesla and Uber), AI and robotics in nursing (with TAVIE), and the application of AI in accounting (Robotic Process Automation). It analyzes the current state of these fields, identifies the potential benefits and challenges of AI integration, and provides recommendations for HR professionals. These recommendations include focusing on recruiting skilled labor, training existing employees on new technologies, and developing compensation plans to address potential job losses. The report emphasizes the need for HR to adapt to the rapid advancements in AI to ensure efficiency, effectiveness, and competitiveness in the future.

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Performance management human resource
Name
Institution
Author’s Note

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Introduction
In the early-1950s a British Mathematician, Alan Turing, created a test, the Turing Test, for
measuring the intelligence levels for computers. The renowned mathematician became very influential
and controversial during World War II when he cracked the ‘unbreakable’ Nazi code known as Enigma.
This resulted to people referring to him as the father of modern computing. As a result of his
contributions, later in the year 1956 John McCarthy presented the first proposal on Artificial
Intelligence during a conference in Carnegie Mellon University (Birk et al. 2016) He further went ahead
and created the first programming language for Artificial Intelligence known as LISP. Major discoveries
and advancements have been made since then in this field. In the year 1979, the first fully self-driven
car known Stanford Cart was built. Mass production of self-driven cars is today done by big tech firms
such as Tesla with their Model S car. There has been the emergence of related field such as robotics,
linguistic intelligence, musical intelligence, spatial intelligence among others.
In as much as these advancements in technology are helping us solve most of our problems, it
comes at a cost. A price most scientists are not willing to pay. Computer scientists have estimated that a
stunning 85% all the customer-based encounters will be operated without the presence of an actual
human being by the year 2030. This translates to millions of people being rendered jobless in the
developed countries. It is disturbing to imagine what the implications will be in 40 to 50 years’ time
(Iglesias 206). Interestingly, the two major objectives of Human Recourse (HR) and Artificial
Intelligence are the same. To ensure that there is more efficiency and effective work performance levels.
Whether Artificial Intelligence can work together with Human Resource or is meant to replace it is still
an open question.
Billionaire and (co)founder of Tesla, PayPal, Space X, Boring and Open AI Elon Musk
expressed his worry about Artificial Intelligence during a talk in MIT in 2014. He purported that
Artificial Intelligence would not only pose a threat to employment but also lead to the extinction of
humanity. In a turn of events, he later on incorporated Artificial Intelligence to his autonomous car,
Model S, and founded Open AI. Apple’s and Google’s executives, Tim Cook and Sundar Pichai, on the

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other hand believe the future is bright for Artificial Intelligence. By May 2019 Google has been able to
successfully build an Artificial Intelligence program which helps doctors to detect and diagnose lung
cancer. According to Forbes, Apple is cutting hundreds of its employees who were initially working on
its autonomous car program since 2014. It is a strategy by the Human Resource team to bring the focus
on developing various Artificial Intelligence models instead. This is because AI shows a greater
potential with its applications spreading to various fields and occupations (Lyon and Maxwell 2011)
We are going to make recommendations to HR to ensure feasibility in the work space based on
the research on the trends and developments in Artificial Intelligence and Robotics in various fields.
Taxi Driver
Autonomous cars/taxis (self-driven cars/taxis)
The self-driven car industry is still in its inception stages. Only exceptional tech and motor
vehicle companies such as Tesla have been able to successfully build and test their autonomous cars.
The Model S is fitted with an Artificial Intelligence program known as ‘Auto Pilot’. This comes exactly
40 years after the first autonomous car, Stanford Cart, was built in 1979. In the next 40 to 50 years, at
least 70% of all the cars on our roads will be self-driven. It is not only efficient but also reliable. Only a
couple of fatal accidents have been recorded by Tesla. As a result of the emerging trends and high
market demand in Artificial Intelligence, Tesla’s HR has been able to recruit over 1000 skilled
engineers and computer programmers. Institutions such as MIT and Harvard are now offering programs
and majors on Artificial Intelligence. This is to equip the learner with the necessary skills to be effective
in the current job market. This means that there will be a decline in the number of semi-skilled labour
(taxi drivers) and an increase in number in the skilled labour (engineers).
Uber
Uber has the most popular public transport service in Australia. It has an estimated 82,000
licenced and verified taxi drivers. The legal age requirement of Uber is 21 years with at least one year of
licensed driving. In most of the states in Australia, one has to be at least 17 years old in order to be

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issued with a driving licence. In Victoria, however, the legal age to obtain a driving licence is 18 years.
This therefore means that by 21 years, a significant number of ‘millennials’ will be legally viable for
employment. So why is age so important? Well, statistics also show that there has been an increase in
the number of accidents in Australia over the past five years resulting to around $27 billion in losses
annually. Henry Fayol, a HR theorist, argued that business efficiency and effectiveness is necessary
when it comes to Human Resource Management. Speculations are therefore made when the HR
management is under attack for recruiting a significant number of inexperienced taxi drivers. Especially
when the statistics clearly show that the greatest cause of the accidents to be poor driver education and
low driver experience.
Recommendation
As we have seen, there have been an increased number of accidents caused by the inexperienced
taxi drivers. The development of the self-driven taxis will capitalise on this market opportunity. The
Human Resource should now focus on the recruitment of highly skilled labour (software developers and
engineers) who will not only increase the value of the firm over time but also enable the firms to
compete effectively in the current market. Thus, they should reduce the number of semi-skilled labour
who majorly forms the bulk of the total workforce. The exponential growth of Artificial Intelligence and
its applications might leave the semi-skilled employees as business liabilities in the next 40 to 50 years.
Nurse
AI and Robotics in nursing
Artificial Intelligence and Robotics in nursing is still in its pilot stages. José Côté, a professor in the
Université de Montréal is current spearheading the development and progress of a virtual nursing
Artificial Intelligence program known as TAVIE. This system is basically supposed some of the roles
which are performed by a nurse. The AI nursing program can be very helpful when it comes to handling
patients with diseases which are highly contagious (Olvera 2016). 25% of the patients have HIV while
the other 75% comprise of patients with diabetes, gynaecologic cancer and those who have undergone

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cardiac surgery. TAVIE has been launched in various countries including Australia. The deployment of
the technology to other countries has faced obstacles such as legal requirements and social beliefs. The
John Hopkins University Hospital is also developing a similar system in a 40 to 50 year financial plan.
This meant to reduce the cost of employment and increase efficiency and effectiveness in the work
place. Though the move has not been welcomed by majority of its nurses, experts believe the system
will still require human assistance. According to Fredrick Taylor’s theory, jobs should be designed with
the objective of minimizing movement in order to achieve optimum efficiency in the workplace. This is
what Artificial Intelligence and Robotics nursing system such as TAVIE capitalise on.
Human nurses
Nursing has been able to open up employment for millions of people across the globe over the
past centuries. In Australia, over 30% of the female population are nurses. In hospitals, nurses are
supposed to provide professional assistance to the doctors by diversifying the work load hence increase
efficiency. However, several cases have been reported concerning negligence or incompetency by the
nurses (Jelenković and Barjaktarović 2016). Also, the signs and symptoms of certain diseases may be
very difficult to notice through observation. This has resulted to the increased number of death by
patients in the intensive care unit. By May 2019 Google has been able to successfully build and test an
Artificial Intelligence nursing program which helps doctors and nurses to detect and diagnose lung
cancer. This technology however is not fully automated (Kabir 2018). The nurses would be required to
update the systems and frequently monitor its data among other responsibilities. The functions of a
nurse might be reduced to taking care of the AI nursing systems from taking care of the patients. A large
number of nurses will be rendered jobless if the technology becomes scalable (Ogunyomi and Bruning
2016).

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Recommendations
AI nursing systems such as the TAVIE require human assistance. HR should therefore consider
reducing the recruitment of additional nurses and focus on training the nurses how to effectively use and
monitor these systems (Meyer,Tsui and Hinings 2016). This will help the hospitals become efficient and
effective even after expansions. The increase in patient intake will not necessarily result to an increase
in the number of nurses (Pollack and Algeo 2016). HR should create a compensation plan to cater for
anybody who might be affected by the technology in the future. This is to avoid any legal conflicts
(Judge and Douglas 2016).
Accountant
Artificial Intelligence and Robotics in Accounting
Artificial Intelligence and Robotics is a must-have entity when it comes to the design and
development of Finance or Accounting business model (Saputra 2016). AI systems such as Robotic
Process Automation (RPA) have been able to reduce the once tedious work load accountants had to
handle. This does not total exonerate an accountant from performing any duty. They are supposed to
input data into these systems and effectively interpret the results (Ismail and Ali 2016). AI in accounting
has only been in existence for less than a decade. The results however are significant. Banks and other
financial institutions are now able to realise huge profit margins. Around 83% of all the financial
institutions in Australia operate using the RPA. The remaining 17% have stuck to their primary methods
since they do not want to jeopardise their success based on a new technology. This might be true but
according to Forbes, the RPA, mini bots or adaptive intelligence are actually meant to compliment on
the human brain power (Krasniqi 2014). The accountants will therefore be left to put more effort into
more profitable analysis and client-counsel. Based on a report by Forbes, small microenterprise
companies using AI have been able to post an exponential growth rate of 51%. In 40 to 50 years to
come, any business model which will have not employed AI to its accounting system will be generating
huge financial losses (Sheikhtaheri, Sadoughi and Ghazizadeh 2016). This can be caused be the
recruitment of many qualified accountants whose salaries will cut significantly into the business

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revenues. Also, consistent inaccuracy will result to the dissatisfaction of clients (Rodríguez-Rangel,
Sánchez-Rivero and Sánchez-Martín 2016).
Traditional accounting
Andrew Carnegie is probably one of the greatest accountants of the 18th Century. He was able to
single-handedly revolutionize the banking industry building an empire worth $600 million during his
lifetime. Few bankers or accountants from Wall Street can be able to accomplish such feet (Obaji, Senin
and Olugu 2016). This is because the accounting sector is being influenced hugely by technological
advancements. These trends in technology are much unpredicted. Accountants used to be regarded as
untrustworthy and unreliable (Sadatrasool, Bozorgi-Amiri and Yousefi-Babadi 2016). Data used to be
stored in these large files which would sometimes get misplaced, stored or destroyed (Olaiya et al.
2016). Gathering of data and information would involve moving to various locations thus spending so
much money and time. This structure was eventually going to collapse due to its unfeasibility.
According to Fredrick Taylor’s theory, jobs should be designed with the objective of minimizing
movement in order to achieve optimum efficiency in the workplace.
Recommendations
The HR should take keen interest on organising internal workshops and seminars to equip
accountants with the relevant skills of operating these accounting AI systems. They should also have a
40-50 year reduction plan on the number of accountants to be employed. Their focus should instead
diverge into recruiting a technical team of software developers and engineers. They will be required to
update these systems, repair, maintain them and secure them from future attacks. A cyber-attack on
these systems would leave the financial institution incapable of operating thus huge financial losses.
Conclusion

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With just 70 years of its existence, the development of Artificial Intelligence has portrayed huge
social, political and financial impact. We have witnessed revolutionary applications such as the Auto
Pilot in vehicles, TAVIE used in nursing or even the Robotic Process Automation (RPA) used in
accounting. Institutions such as Harvard and MIT have decided to offer programs and major in Artificial
Intelligence. This is to equip the learner with the necessary skills to be effective in the current job
market (Sharma 2016).
However, some of the technological advancements will render millions of people jobless will
others will assist the workforce into realising better results. The self-driven taxi will significantly reduce
the expenses incurred by the company when employing its drivers (Miles, Snow and Pfeffer 2016).
Efficiency will be realised since the autonomous cars greatly address the accident problem. However,
we have seen that majority of the young people who rely on this as a source of income will greatly be
affected. In other sectors such as nursing and accounting, the Artificial Intelligence programs will
require human assistance in its interpretation and monitoring. We have recommended that HR should
organise internal workshops and seminars to equip the employees with the necessary skills to handle
these sophisticated technology. HR should develop a compensation policy to cater for any damages
caused by the use of the Artificial Intelligence and Robotics programs. This majorly applies to the ones
used in nursing which might be radioactive. The policy should cover the nurses and technical team who
would be tasked to monitoring and repairing the technology.
We have also been able to apply Fredrick Taylor’s theory on Human Resource management. He
argues that jobs should be designed with the objective of minimizing movement in order to achieve
optimum efficiency in the workplace. This is clearly seen in accounting. We have also looked at Henry
Fayol, a theorist, who argued that business efficiency and effectiveness is necessary when it comes to
Human Resource Management. This translates to the company making huge revenues while it cuts on
its expenditure. This is highlighted in the motor vehicle, nursing and the accounting sectors.
Advancements in technology are inevitable. Ignorance would only result to huge financial upsets
in the future. This is characterized by Elon Musk, whose 2014 talk in MIT was completely against

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Artificial Intelligence. Five years later, he has incorporated the Artificial Intelligence program, ‘Auto
Pilot’ on the Model S. Furthermore; he has founded Open AI in order to comprehensively study and
develop safe and promising Artificial Intelligence programs.
The future is both bright and dim when it comes to Artificial Intelligence and Robotics and their
applications to various business sectors such as nursing and accounting. Some job opportunities will be
closed others will be opened. We would like to underscore the inevitability of these technological
advancements. Though these trends are not predictable we can only prepare and plan for the future. A
full proof Human Resource plan might enable various business models to achieve efficiency and
effectiveness even in the next 40 to 50 years.
Technical Part
2020 2030 2040 2050 2060
0
10
20
30
40
50
60
70
80
90
100
Taxi drivers
Nurses
Accountants
The y axis represents the percentage of the number of people opting for Artificial Intelligence
and Robotics in regards to the various occupations. These occupations include the taxi drivers, nurses
and accountants. The x axis on the other hand represents the years in tens. The line graph presents a
prediction in the number of people opting for Artificial Intelligence and Robotics in regards to the
various occupations over a period of 40 years. The values presented are only estimates.

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Artificial Intelligence and Robotics on Taxi drivers
From the year 2020, the percentage of people opting for the self-driven taxis will experience a
rapid growth of 25% within the first ten years. This can majorly be attributed to Public Relation
strategies by firms such as Tesla with the Model S. The strategy will enable the Model S to have an
increase in the number of sales. Most of the buyers will prefer using their vehicles as taxis in order to
make returns and eventually make profit. From 2030 to 2040, there will be a reduction in the growth
rate by 20%. This can be attributed to unforeseen circumstances such as theft. The growth will still be
significant since the product will have just elevated from its pilot stage. From 2040 to 2050, there will
be a 15% growth since the self-driven car will have reached its maturity stage with several industry
giants offering the service. From 2040 to 2050 there will be a predicted growth increase by 18%. This is
as a result of the legalization and acceptance of the technology in various countries around the world.
Artificial Intelligence and Robotics on Nurses
From 2020 to 2030 the field will experience a 20% growth. This can be attributed to its trending
factor. For the next ten years there will be a 14% growth increase. This is because the mass production
of this product will still be very expensive. From 2040 to 2050 only a 6% growth will be recorded. The
company which developed the technology will still have the patent rights to this technology. This will
prevent other firms from developing the system. This period will also be faced by other legal
requirements.
From 2050 to 2060, there will be a 10% growth. By this time, many firms will have the approval to
develop the technology. The product will also have gathered legal and social acceptance.
Artificial Intelligence and Robotics on Accounting
From 2020 to 2030 there will be a 10% growth. Majority of this will be attributed to the small
microenterprise business models which will be willing to try the new system. In the next ten years,
another 10% increase will be recorded. By this time several bigger financial institutions will be using
the technology. This will be caused be the urgency to have an efficient and effective financial system.

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The steady 10% would continue up to 2050. From 2050 to 2060 there will be a 20% increase due the
bulk of data to be analysed.

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