The Impact of AI and Automation on Strategic Workforce Planning in Multinational Organizations
Keywords:
Artificial Intelligence, Automation, Strategic Workforce Planning, Multinational Organizations, Human Resource Management, Digital Transformation, Talent ManagementAbstract
The rapid rise of Artificial Intelligence (AI) and automation technologies has completely changed how multinational organizations (MNOs) operate. This paper takes a closer look at the various ways AI-driven tools and robotic process automation (RPA) are influencing strategic workforce planning (SWP) in different geographic, cultural, and regulatory contexts. By conducting a thorough review of literature from 2015 to 2024, this study highlights the key ways AI is transforming talent acquisition, skills forecasting, workforce analytics, and organizational restructuring. The results show that while AI boosts efficiency and improves predictive accuracy in workforce planning, it also brings about challenges like job displacement, ethical governance, the need for reskilling, and compliance with cross-border labor laws. To help multinational HR leaders navigate this shift, the paper introduces an integrated framework called the AI-Augmented Strategic Workforce Planning (AASWP) model. This study adds to the growing body of management literature that sits at the crossroads of digital transformation and human resource strategy.
References
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Boudreau, J. W., & Ramstad, P. M. (2005). Talentship, talent segmentation, and sustainability: A new HR decision science paradigm for a new strategy definition. Human Resource Management, 44(2), 129–136.
Davenport, T. H., Harris, J., & Shapiro, J. (2010). Competing on talent analytics. Harvard Business Review, 88(10), 52–58.
DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.
Dowling, P. J., Festing, M., & Engle, A. D. (2017). International Human Resource Management (7th ed.). Cengage Learning.
European Parliament. (2024). Regulation on Artificial Intelligence (AI Act). Official Journal of the European Union.
Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 114, 254–280.
Hmoud, B., & Laszlo, V. (2019). Will artificial intelligence take over business intelligence and human resource management? International Journal of Scientific and Technology Research, 8(9), 234–239.
Hofstede, G. (1980). Culture's Consequences: International Differences in Work-Related Values. Sage Publications.
International Labour Organization. (2020). World Employment and Social Outlook 2020: The Role of Digital Labour Platforms in Transforming the World of Work. ILO.
North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press.
OECD. (2019). The Future of Work: OECD Employment Outlook 2019. OECD Publishing.
Penrose, E. T. (1959). The Theory of the Growth of the Firm. Blackwell.
Stahl, G. K., Björkman, I., Farndale, E., Morris, S. S., Paauwe, J., Stiles, P., Trevor, J., & Wright, P. (2012). Six principles of effective global talent management. MIT Sloan Management Review, 53(2), 25–32.
Strohmeier, S., & Piazza, F. (2013). Domain driven data mining in human resource management. Expert Systems with Applications, 40(10), 3988–3999.
Tambe, P., Cappelli, P., & Yakubovich, V. (2019). Artificial intelligence in human resources management: Challenges and a path forward. California Management Review, 61(4), 15–42.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
World Economic Forum. (2023). The Future of Jobs Report 2023. WEF.
Downloads
How to Cite
Issue
Section
License
Copyright (c) 2025 International Journal of Engineering Science & Humanities
This work is licensed under a Creative Commons Attribution 4.0 International License.
