Unlocking the Potential of Artificial Intelligence in Human Resources Management: A Review of Applications, Challenges, and Future Directions

Abstract

This paper comprehensively explores the integration of Artificial Intelligence (AI) in Human Resource Management (HRM), examining its applications, challenges, and future directions. The review encompasses AI's transformative impact on recruitment processes, talent management, employee engagement, and performance management within HRM. Key applications include AI-powered tools for resume screening, candidate matching, chatbots for initial candidate interaction, enhancing recruitment efficiency and candidate experiences. Also, AI facilitates talent management by providing insights into employee performance, potential, and engagement, enabling tailored learning and development programs. Challenges such as ethical considerations, algorithmic bias, and job displacement are discussed, along with future directions emphasizing ongoing innovation, interdisciplinary collaborations, and the need for HR professionals to stay updated with emerging trends. By addressing challenges and embracing innovation, organizations can unlock the full potential of AI to reimagine HR processes and drive sustainable business success.