ROLE OF ARTIFICIAL INTELLIGENCE IN TRANSFORMING EMPLOYEE ENGAGEMENT AND DECISION-MAKING IN HUMAN RESOURCE MANAGEMENT

Abstract

Artificial Intelligence is rapidly changing the nature of Human Resource Management by making employee-related decisions more data-driven, timely, and analytical. Earlier HR practices mainly depended on manual records, supervisor judgment, employee surveys, and periodic review systems. In the present digital workplace, AI-supported tools are being used to understand employee engagement, predict dissatisfaction, analyse employee feedback, recommend learning opportunities, identify workplace concerns, and support managerial decision-making. The present paper examines the role of Artificial Intelligence in transforming employee engagement and decision-making in Human Resource Management. A descriptive cum analytical survey design was adopted for the study. A sample of 120 HR professionals, team leaders, and employees working in selected private-sector organizations was selected through purposive sampling. Data were collected with the help of a self-constructed structured questionnaire covering three areas: AI-supported employee engagement, AI-based HR decision-making, and organizational challenges in AI implementation. The reliability of the tool was found to be 0.85 through Cronbach’s alpha. Frequency, percentage, mean, and chi-square test were used for analysis. The findings revealed that AI contributes to employee engagement through real-time feedback systems, personalized learning suggestions, employee sentiment analysis, digital communication platforms, recognition tools, and predictive identification of disengagement. In HR decision-making, AI supports workforce planning, employee retention decisions, learning and development decisions, internal mobility, grievance analysis, and policy planning. However, the study also found important challenges such as data privacy concerns, employee fear of monitoring, lack of emotional understanding in AI systems, algorithmic bias, low trust, and overdependence on technology. The chi-square test confirmed a significant association between AI-supported engagement practices and perceived improvement in employee engagement. It also confirmed a significant association between AI-based analytics and effectiveness of HR decision-making. The paper concludes that AI can transform employee engagement and HR decision-making only when it is implemented with transparency, ethical safeguards, human supervision, and employee trust.