AI- Changing Human Capital Management in Retail Revolutionizing Human Capital Management in Retail

Abstract

The retail industry is at the precipice of a significant shift owing to the adoption of AI within the realm of HCM. Concisely, initially, HCM in retail was more of a labor-intensive approach that deals with recruitment, training, engagement, and retention of employees. AI has now come to transform these processes by automating the tasks that take a lot of time and labor, giving predictive analysis, and ensuring a personalized approach to its employees. This paper aims to discover the effects of artificial intelligence in different aspects of HCM, namely recruitment, onboarding, engagement, workforce planning, performance management, and retention. With the help of numerous examples of actual retail companies, we study the use of artificial intelligence for managing human capital and gaining a competitive advantage. Furthermore, the paper discusses several ethical questions, such as using a biased algorithm, privacy policy, data protection, and job losses because of automated systems. Done correctly, AI presents excellent opportunities to improve workforce management and employee satisfaction and create a more competitive retail organization.