ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT: IMPLICATIONS FOR HUMAN CAPITAL AND THE FUTURE WORKFORCE

Abstract

Artificial Intelligence (AI) is increasingly transforming Human Resource Management (HRM) by changing the way organizations recruit, develop, evaluate and retain employees. AI-enabled technologies are being applied across several HR functions, including talent acquisition, workforce planning, performance evaluation, employee development and compensation. While these technologies offer opportunities for improved efficiency, data-driven decision-making and personalized employee services, their use also raises important concerns regarding bias, privacy, transparency, fairness and the role of human judgement. This paper examines the implications of Artificial Intelligence for Human Resource Management, with particular emphasis on human capital development and the future workforce. The paper argues that AI should be viewed primarily as a tool for augmenting human capabilities rather than simply replacing employees. Organizations must therefore invest in employee reskilling, digital capability development and responsible AI governance. The study concludes that the future effectiveness of HRM will depend on the ability of organizations to combine technological innovation with ethical principles and human-centred management practices. The study emphasizes that AI adoption is not only a technological issue but also a human capital and workforce-development challenge.