Artificial Intelligence in Human Resource Management: Transforming Workforce Optimization, Recruitment, and Employee Engagement

Artificial intelligence (AI), which enhances workforce optimization, decision-making, and process automation, is transforming human resource management (HRM). This paper explores how AI can be used in HRM, with a focus on important functions, including hiring, employee engagement, training and development, performance review, and retention. Chatbots, machine learning, natural language processing (NLP), and predictive analytics are examples of AIpowered technologies that increase productivity, reduce biases, and streamline HR operations. Despite the numerous benefits of artificial intelligence, issues such as algorithmic bias, data privacy, transparency, and resistance by employees still prevail. To assess AI's impact on HRM, the research employs a qualitative approach, analysing secondary data from scholarly articles, industry reports, and case studies. Findings indicate that while AI significantly enhances workforce management, ethical use and regulatory oversight are required. The research also considers possible future growth, with an emphasis on growth in AI, generative AI, and people analytics. Companies will achieve a competitive advantage in the evolving HR space if they thoroughly implement AI while maintaining human authority.