Impact of introducing AI in human capital investment on the evaluation of business investment proposals in the Balanced Scorecard

Abstract

This study will clarify how the introduction of an AI perspective on human capital investment may affect the evaluation of business investment proposals, with reference to the SBSC methodology, which incorporates a sustainability perspective into the Balanced Scorecard (BSC) used in corporate strategy formulation. The novelty of this study is that it focuses on human capital and AI and extends the usefulness of BSC. The first experiment (n=165) compared business investment proposals with and without AI for human capital investment, and the second experiment (n=169) compared both investment proposals with AI already in place, using an online survey experiment approach. The results of the experiment showed that the introduction of AI to human capital investment has an impact on increasing the amount of investment in business investment proposals. However, the introduction of AI was shown to have a negative impact on the evaluation of the group with prior education in accounting-related fields. This suggests that in order to promote the adoption of AI for human capital investments, there is a need to gain the understanding of those who have had education in accounting-related fields.