A Review of the Utilisation of Artificial Intelligence for Human Capital Development in Nigeria

Abstract

The paper examines the utilization of artificial intelligence (AI) in human resources
management (HRM and the need to integrate this vital asset into the workplace to enhance
performance of an organization. The 21st century has ushered in continuous change, with
artificial intelligence, driving the growth of intangible human capital assets that are often
unrecorded in organizational performance measures. The paper explores strategies for
developing best-practice approaches to integrating human capital with artificial intelligence
within organizations. Human capital is defined as the economic value of employees’
knowledge, skills, and experiences. Today, organizations must learn to categorize AI in
workforces. Such change is driving paradigm shifts. It employs descriptive design. Thus, it is
exploratory in nature based on extensive review of relevant literature on artificial intelligence,
human resources management and human resources accounting. The findings revealed that
artificial intelligence is gradually taking over certain areas of human resources management,
and most organizations have failed to recognize them in financial statements as required. The
paper, therefore, recommends among others that human resources available in the public sector
should be rightly assessed and should be further developed as far as organization is concerned.
This will help to determine the performance of the organization. Again, AI is redirecting human
capital in the organization, so the cost of acquiring artificial intelligence and Human Capital in
the organization will reflect us in the financial statement of the organization. Further studies
can be empirically done on this topic to establish the relationship between AI and Human
Capacity development.