Artificial Intelligence-Driven Talent Analytics and Workforce Decision-Making: Transforming Strategic Human Resource Management

Abstract

Artificial Intelligence (AI) has emerged as a revolutionary technology in strategic human resource management (SHRM) to enable organizations to use talent analytics to make data-based decisions regarding their workforce planning and management. The use of AI along with HR analytics has brought about a paradigm shift in HR practices to increase operational efficiency, intelligence of the workforce, and organizational performance through such practices. This narrative review seeks to analyze how talent analytics based on AI technologies can transform workforce decision-making processes in SHRM. The review seeks to synthesize existing evidence concerning the use of AI technologies, talent analytics, effects of AI on organizations, challenges associated with the adoption of AI in HR management, and directions for future research. Narrative review methodology was used to analyze recent literature about the use of AI technologies in HRM. In conclusion, the literature review proves that AI contributes greatly to the improvement of recruitment, selection, onboarding, performance management, employee engagement, workforce forecasting, competency mapping, succession planning, and resource allocation. AI-driven talent analytics promotes agility, flexibility, better decision-making and overall competitive advantage of an organization based on predictive and data-driven approach. At the same time, there are challenges regarding AI implementation related to algorithm bias, explainability, privacy, governance, readiness and ethical application of AI. Therefore, AI-driven talent analytics is reshaping SHRM through providing intelligent and data-driven workforce decision-making. Future development depends on proper governance, responsible collaboration of humans and AI, framework for analytics, and multidisciplinary research on ethics and sustainability of human resource management.