The ChatGPT and the future of HR: A critical review on the benefits and challenges of Al chatbots in human resource management

Abstract

ChatGPT, the generative artificial intelligence (AI) tool, can be considered as a major technological revolution. The development of AI is significantly affecting various corporate operations, and ChatGPT's use in an HR context is likely to grow in popularity and significantly impact how HR professionals perform their duties. The main purpose of this paper is to investigate the potential benefits and challenges of utilizing AI chatbots in human resource management. In addition, the study looks at how their use is expected to develop over time and how companies are preparing for this technological transformation. Utilizing a systematic review methodology, the paper reviews 27 papers identified in the Scopus database published in from the year 2016 to 2023 to address the research questions. The findings of the paper show ChatGPT has several benefits for Human Resource function including automating routine HR tasks, providing insights to optimize HR strategies and decision making. At same time organization might face some potential challenges of using Chatbots, such as limited understanding of human nuances and context, lack of emotional intelligence, privacy, and security concerns. The study suggests how organizations need to prepare to confront these challenges, technological shifts, and potential future research areas. Thus, the paper contributes to the literature on the use of AI chatbots in human resource management and serves as a useful resource for organizations seeking to leverage this technology.