ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT: TRANSFORMING MODERN HR PRACTICES AND ORGANIZATIONAL EFFECTIVENESS

Abstract

Artificial Intelligence (AI) is increasingly reshaping Human Resource Management (HRM) by supporting recruitment, employee engagement, performance management, workforce analytics, training and administrative services. This study examines the role of AI in modern HRM, with particular attention to recruitment efficiency, employee engagement, performance management, workforce planning and training and development. The study adopts a descriptive and analytical research design and uses both primary and secondary data. Primary data were collected through a structured questionnaire from 200 HR professionals and employees who were familiar with or exposed to AI applications in HRM. Convenience sampling was used. Descriptive statistics and correlation analysis were used to examine respondents' perceptions and the relationship between AI adoption and employee satisfaction. The reported findings show that 77.5% of respondents consider AI-based recruitment systems effective or highly effective. Mean scores for the major HR functions range from 4.08 to 4.35, with recruitment efficiency receiving the highest mean score. The reported correlation between AI adoption and employee satisfaction is positive and statistically significant (r = 0.742, p < 0.01). The study also identifies implementation challenges involving algorithmic bias, privacy, transparency, employee trust and the need for human oversight. The findings support a human-centred approach in which AI complements rather than replaces professional HR judgment. The paper concludes with managerial implications, limitations and directions for future research, particularly concerning generative AI and remote or hybrid workforce management.