The Impact of Artificial Intelligence Support on Human resource utilization under the effective financial policies adopted by EU countries

Abstract

This research aims to examine the impact of artificial intelligence (AI) on recruitment as a human resource management activity, and the extent to which state fiscal policies can support this impact. This is achieved by focusing on job turnover rates and their associated costs. The European Union was chosen as the research population, with ten countries randomly selected to represent the research sample for the period 2015–2024. The nature of the research variables and the selected time series necessitated the use of panel data. A random guessing model for linear regression was employed. The researcher concluded that increased spending on AI will impact human resource recruitment activities, specifically improving job turnover rates and, consequently, recruitment costs. Furthermore, the adoption of effective AI-based fiscal policies that support growth, such as macroeconomic forecasting, strengthening financial stability mechanisms within central banks, and enabling fiscal policies and revenue management, will lead to faster skills development, prioritization of human capabilities, and continuous learning, ultimately resulting in a lower turnover rate.