Adoption of Artificial Intelligence in Human Resource Management: Benefits and Risks

Abstract The adoption of Artificial Intelligence (AI) in Human Resource Management (HRM) is transforming traditional HR practices by introducing advanced data-driven approaches to decision-making. The main objectives of this paper is to explores the dual impact of AI on HRM, highlighting both the significant benefits and potential risks associated with its implementation. AI technologies enhance efficiency in recruitment, talent acquisition, performance management, and employee engagement by automating routine tasks, improving accuracy in candidate selection, and offering predictive insights on workforce trends. However, along with these benefits, the adoption of AI raises critical concerns, including biases in algorithmic decision-making, data privacy issues, and the potential for reduced human involvement in HR processes. This study emphasizes the importance of ethical AI practices, transparent algorithms, and HR professionals’ upskilling to effectively manage AI-driven tools. The main findings of this paper is to provide HR practitioners with a balanced understanding of how to leverage AI while mitigating associated risks to ensure a more innovative and equitable workplace.