AN IMPACT OF ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT PRACTICES

Abstract

The integration of Artificial Intelligence (AI) into Human Resource Management (HRM) practices has transformed traditional organizational processes, offering both opportunities and challenges. AI technologies are increasingly used in areas such as recruitment and selection, employee engagement, performance management, learning and development, and workforce analytics. These tools enable HR professionals to streamline operations, enhance decision-making, reduce bias, and improve employee experiences through data-driven insights. AI is reshaping HRM practices by increasing efficiency and enabling data-driven decisions. However, despite its advantages, AI adoption also raises concerns regarding ethical implications, privacy, transparency, and the potential reduction of human judgment in people-centric functions. This study examines the effects of AI in optimizing and improving HRM practices, while also exploring the challenges and opportunities associated with its adoption. It emphasizes efficiency, fairness, and strategic value creation, highlighting advantages such as principled recruitment, employee engagement, and informed decision-making. Nevertheless, challenges remain regarding ethics, workforce acceptance, and the need for new skill development among HR professionals. By addressing key issues of holistic integration and sectoral focus, this research contributes to the growing body of literature on AI in HRM. The paper also provides practical suggestions for organizations to navigate the complex challenges of AI adoption while ensuring workforce resilience as these technologies continue to evolve.