Smart cities, smarter decisions: The algorithmic governance of human resource management

Abstract

The integration of Artificial Intelligence (AI) in smart cities and Human Resources Management (HRM) is profoundly transforming organizational decision-making, presenting both significant opportunities and complex ethical challenges. This research explores essential governance mechanisms for AI in HRM, aiming to ensure justice, transparency, and accountability within these urban ecosystems. This study systematically defines and proposes robust AI governance mechanisms specifically tailored for HRM in smart cities, focusing on core ethical imperatives like fairness and responsibility in algorithmic decisions. It builds upon existing literature on smart cities, algorithmic governance, and AI in HRM, integrating insights on digital transformation. A critical literature review highlighted inherent tensions between technological efficiency and ethical requirements, specifically addressing algorithmic biases, potential discrimination, and the loss of human autonomy in HR decisions. Findings underscore the urgent need for a hybrid governance model balancing human intelligence and oversight with powerful algorithmic capabilities to leverage benefits while proactively managing risks. This cross-cutting approach offers critical and strategic perspectives for ethical and responsible talent management via AI. These insights are relevant for practitioners navigating digital shifts and policymakers developing AI regulatory frameworks for urban and corporate settings. The article's originality consists of its comprehensive integration of smart city dynamics with AI ethics in HRM. It provides a unique and timely framework bridging these domains, offering novel insights for future research and responsible implementation.