Lapland University research has made breakthrough at utilizing Artificial Intelligence (AI). Researchers have created strong AI algorithms at human capital management simulation. AI powered simulation learning has profound meaning to management training and performance development.
Research director Marko Kesti has made human capital productivity research for over ten years.
“I am very excited about our breakthrough. We created strong AI algorithms at our management simulation game, and it exceeds our expectations. Simulation does not iterate – it analyzes with real data. Therefore, the AI advice is valuable at real life. The sustainable profit increase will be profound.”
The simulation includes human capital production function with motivation theories and deductive rules. Simulation contain the rules of Markov decision process and reinforced learning.
“In management simulation game, we have created strong AI. It advices optimal management practices, because it can predict the future reward”, says Kesti.
Strong AI use Bellman advantage function with 12 months floating analyze. The strong HR-AI is narrow because it operates only at the HRM simulation world.
AI advice is depending on team situation and line-manager’s personal management skills. AI mentor help will foster the learning outcome. HR-manager can test HR-strategy effect on business, and AI will help improving the HR-strategy. Every line-manager will have personal assistant that is reliable mentor and always available. When every line-manager improves leadership performance, there will be cumulative business gain. Monetary yearly benefit can be for example 3000€ per employee repeated several years in a row.
One simulation year will take approximately 20 minutes at the learning game. Companies can input their own data and then simulate the best road-map to success. Research director Marko Kesti see the HR-AI future very promising. The economic gains in companies’ profit will be profound. Kesti believe that AI will finally change the HR-management's role from cost-center to strategic profit-center.
“With this breakthrough we can speed-up the research benefits at the practice”, says Kesti.
Dr. Marko Kesti