The AI-Driven Evolution of Human Resource Management: Trends, Challenges, and Future Directions

Shubhangi Pandey; Apoorwa Mishra

doi:10.36948/ijfmr.2025.v07i03.46823

The AI-Driven Evolution of Human Resource Management: Trends, Challenges, and Future Directions

Author(s)	Ms. Shubhangi Pandey, Dr. Apoorwa Mishra
Country	India
Abstract	The advent of Artificial Intelligence (AI) is profoundly reshaping the domain of Human Resource Management (HRM), ushering in a new era of data-driven, automated, and intelligent decision-making processes across a wide array of HR functions. This research paper conducts a comprehensive secondary analysis of current academic literature, industry reports, and case studies to investigate the transformative impact of AI technologies on HRM practices. Key areas of disruption identified include AI-powered recruitment and talent acquisition systems, predictive analytics for employee performance evaluation, intelligent workforce planning, automated onboarding, and real-time employee engagement platforms. In addition to showcasing these advancements, the study critically examines the inherent challenges and risks associated with AI integration, such as data privacy concerns, algorithmic and cognitive biases, transparency issues, lack of interpretability, and the growing digital skill gap among HR professionals. The paper further explores the strategic implications of AI in fostering agile, inclusive, and responsive HR ecosystems, and underscores the importance of aligning AI deployment with organizational ethics, legal compliance, and human-centric values. Emerging trends such as explainable AI (XAI), ethical AI governance, and AI literacy in HR are also discussed as essential pathways for sustainable implementation. The findings suggest that while AI holds the potential to significantly enhance operational efficiency, decision accuracy, and employee experience within HRM, a cautious, ethically guided, and strategically integrated approach is imperative for long-term success.
Keywords	Keywords: Artificial Intelligence, Human Resource Management, AI in HR, Predictive Analytics, Recruitment Automation, Performance Evaluation, Employee Engagement, Algorithmic Bias, Ethical AI, HR Technology, Workforce Analytics, Explainable AI, Data Privacy in HR, AI Governance, Digital Transformation.
Field	Business Administration
Published In	Volume 7, Issue 3, May-June 2025
Published On	2025-06-01
DOI	https://doi.org/10.36948/ijfmr.2025.v07i03.46823
Short DOI	https://doi.org/g9m2c4

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The AI-Driven Evolution of Human Resource Management: Trends, Challenges, and Future Directions

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