AI and Innovation in HRM

This chapter examines the impact of Artificial Intelligence (AI) on Human Resource Management (HRM) in the service economy. This chapter outlines the key themes discussed, including AI-driven talent acquisition, personalized learning and upskilling, improving employee experience and engagement, improving performance and talent management, data-driven perspective in HR, AI integration in HR development, ethical considerations and governance in AI adoption, fostering trust in AI technologies, and the future role of ‘Human’ in HR. Each theme illustrates AI’s transformative potential and its implications for strategic HRM. AI simplifies recruitment processes, customizes learning experiences, and improves employee satisfaction through personalized engagement tools. Ethical frameworks assure responsible AI use, securing privacy and reducing biases. The future demands HR professionals efficient at exploring AI’s complexities while supporting human-centric values. AI in HRM promises productivity improvements and strategic advantages, shaping a future where technology and human capital integrate to drive organizational success in the service economy and beyond. The chapter also identifies current trends, showing how companies like IBM, Unilever, and Google use AI to enhance HR functions. Apart from widespread adoption, gaps remain in understanding the long-term effects of AI on HR practices and the ethical implications of its use. The study calls for further research to explore these areas. Each chapter explores specific areas where AI impacts HR, such as talent acquisition, learning, engagement, and performance management. The chapter underscores the benefits of AI, including improved decision-making, efficiency, and better employee experiences. It also stresses the need for ethical AI practices and governance to ensure responsible AI integration. The study advocates for a balanced approach where AI supports, rather than replaces, human-centric HR practices, guiding professionals through the complexities of AI adoption in HRM.