Unveiling the hidden costs of AI in hospitality industry: The adverse effect of algorithmic human resources management (AHRM) on stress, wellbeing, and commitment

Abstract

Emerging evidence of the impact of algorithmic HRM (AHRM) indicates the positive implications of immersive technologies like artificial intelligence (AI) and algorithmic management on an organization’s socio-technical systems, stimulating the need to explore its adverse effects on the workforce and organizations in particular in hospitality industries. One such under-researched topic is stress well-being and the commitment of HR practitioners when organizations implement AI interventions, such as AHRM, a channel to augment HR-related decisions and automate HRM activities in organizations. This research investigates how implementing AI interventions such as AHRM, affects HR employees adversely. Analysing insights from 55 in-depth interviews of HR practitioners from eight hospitality industries in India, we present qualitative evidenceof the key research findings. The findings point to an adverse impact of AI-based AHRM interventions on stress (acts as a direct response), well-being (as an outcome of prolonged exposure), and commitment (as a long-term effect) of employees in organizations. This research primarily advances scholarship on the dark side of technological interpolations, such as AI interventions in the HRM function. Implications for theory and practice are also discussed.