Artificial Intelligence (AI) Adoption in HR Management: Analyzing Challenges in Kazakhstan Corporate Projects

Artificial Intelligence (AI) Adoption in HR Management: Analyzing Challenges in Kazakhstan Corporate Projects

Rajasekhara Mouly Potluri (Kazakh-British Technical University, Kazakhstan) and Diana Serikbay (Kazakh-British Technical University, Kazakhstan)
Copyright: © 2025 |Pages: 18
DOI: 10.4018/IJABIM.376012
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Abstract

The research seeks to explore and analyze the various challenges associated with adopting artificial intelligence (AI) within the functional domains of human resource management, with a particular focus on its implementation in corporate sector projects across Kazakhstan. A self-administered three-part questionnaire collected data from human resources (HR) professionals in Kazakhstan. Data were processed using Microsoft Excel and R Studio R Language. McDonald's omega and Bartlett's tests ensured the questionnaire's reliability and validity for total respondents. A quantitative approach utilizing structural equation modeling with SmartPLS 3.0 was applied to analyze and assess complex theoretical relationships among variables in the selected hypotheses. The significant findings are that challenges like cultural resistance, investment costs, and skill gaps substantially influenced the implementation of AI in the HR domain of Kazakhstan companies, except for the integration of other systems of the organization. The study was limited to four HR sectors in Kazakhstan, with inconsistent data collection.
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Introduction

The rapid advancement of artificial intelligence (AI) technologies is fundamentally transforming how organizations manage their most valuable asset: human capital. In human resources management (HRM), AI-powered tools are increasingly embraced to streamline recruitment processes, boost employee engagement, and enhance decision-making through insightful data analysis (Singh & Chouhan, 2023). Technologies such as predictive analytics, chatbots, and automated screening processes are commonplace in human resources (HR) departments, allowing organizations to automate routine tasks. This improves efficiency and frees HR professionals to spotlight additional strategic initiatives that drive growth. This shift is particularly crucial for project-based industries like engineering and construction, where agility and responsiveness to changing business needs are essential for boosting workforce productivity (Gil Ruiz et al., 2021). As global trends indicate, there is a growing reliance on AI as a solution to address talent shortages and enhance HR functions (McKinsey, 2023). This trend is not limited to established economies; emerging markets like Kazakhstan are also exploring AI solutions to modernize workforce management practices. A recent report from Gartner (2023) highlights this momentum, revealing that the global HR technology market was valued at around $24 billion in 2023. Notably, 38% of HR leaders are actively pursuing AI-based solutions to improve their operations, while a staggering 76% express concerns about falling behind if they do not adopt AI within the next two years. Despite the promise of increased operational effectiveness, organizations must navigate several challenges in AI implementation, including cultural resistance, ethical considerations, and upskilling (Tambe et al., 2019).

Kazakhstan's corporate sector is beginning to align itself with the global digitalization wave, especially concerning the integration of AI in HR processes. As businesses strive to keep pace with these technological advancements, there is a noticeable shift toward leveraging AI tools to boost operational efficiency. In particular, the engineering and construction industries—vital to Kazakhstan's economy—require agile HR practices capable of effectively managing complex, project-based operations. AI holds significant promise for optimizing recruitment processes and resource allocation through real-time data analytics and improved decision-making. Nevertheless, the successful implementation of AI depends on various contextual factors that are specific to Kazakhstan's business environment, including cultural norms, existing technological infrastructure, and workforce readiness. Gaining a profound understanding of these factors will provide crucial insights into how organizations can effectively align AI tools with project management needs, ultimately helping them improve operational efficiency and strengthen their competitive position in the market. While the potential benefits of AI in HRM are widely recognized, the path to successful implementation often hinges on various poorly understood factors, particularly in developing markets like Kazakhstan. There is a noticeable lack of research focusing on AI adoption within the corporate sector of Kazakhstan, underscoring the need for a thorough examination of the opportunities and challenges organizations encounter during this transition. Identifying these factors is essential for developing practical recommendations that can guide HR practitioners and business leaders in leveraging AI technologies effectively. This study aims to delve into the dynamics of AI implementation within HR practices, focusing specifically on project-based industries in Kazakhstan. By analyzing survey responses and testing hypotheses regarding the factors influencing AI adoption, this research will offer actionable insights that contribute to both academic discourse and practical solutions. The findings are anticipated to provide valuable guidance for organizations seeking to formulate strategies that leverage AI effectively in their HR processes, leading to improved performance and sustainability in an increasingly competitive marketplace.

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