AI Driven HR Transformation:opportunities,challenges,and Ethical Implications in Talent Management

Vinanti Shridhar Naik; Bhargavi Pandurangi; Suvarna Nimbagal

doi:10.36948/ijfmr.2025.v07i06.64602

AI Driven HR Transformation:opportunities,challenges,and Ethical Implications in Talent Management

Author(s)	Prof. Vinanti Shridhar Naik, Prof. Bhargavi Pandurangi, Prof. Dr. Suvarna Nimbagal
Country	India
Abstract	The integration of Artificial Intelligence (AI) into Human Resource (HR) functions is increasingly transforming how organizations manage talent and design people-centric strategies. Advances in AI technologies have enabled organizations to improve efficiency, enhance decision-making, and strengthen workforce management across the talent lifecycle (Davenport &Ronanki, 2018). This study explores the application of AI in key HR functions such as recruitment and selection, onboarding, learning and development, performance management, employee engagement, and retention. By automating repetitive administrative tasks and leveraging predictive analytics, AI allows HR professionals to focus on strategic roles while offering more personalized and data-driven employee experiences (Bersin, 2019).However, the adoption of AI in HR presents several organizational and ethical challenges. Integrating AI tools with existing HR systems, managing employee resistance, and ensuring digital readiness remain significant implementation barriers (Marler & Boudreau, 2017). In addition, concerns related to data privacy, algorithmic transparency, and the risk of embedded biases in AI-driven decision-making have gained increasing scholarly attention (O’Neil, 2016; Raghavan et al., 2020). These concerns raise critical questions regarding fairness, accountability, and the long-term impact of AI on workforce diversity and inclusion.This study synthesizes insights from academic literature, industry reports, and organizational case evidence to provide a comprehensive understanding of AI-driven HR transformation. By examining both opportunities and challenges, the research offers valuable guidance for HR practitioners, business leaders, and policymakers. The study emphasizes the importance of balancing AI-enabled efficiency with human judgment, advocating for responsible and ethical AI adoption that supports transparent, inclusive, and sustainable talent management practices.
Keywords	Artificial Intelligence, Human Resource Management, Talent Management, Ethical HR Practices.
Field	Business Administration
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-31
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.64602

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AI Driven HR Transformation:opportunities,challenges,and Ethical Implications in Talent Management

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