Impact of Artificial Intelligence and Automation on HR Functions: Opportunities and Challenges

Abstract

Artificial Intelligence (AI) and automation are transforming Human Resource (HR) functions, redefining traditional processes and enhancing operational efficiency. This paper delves into the opportunities and challenges associated with AI-driven HR practices, with a particular focus on recruitment, talent management, performance evaluation, and employee engagement. AI-powered tools streamline candidate screening, optimize workforce planning, and enable data-driven decision-making. However, concerns regarding bias in AI algorithms, data privacy, and job displacement present significant challenges. The study also highlights the ethical considerations of AI integration in HR, emphasizing the need for transparency, fairness, and compliance with labour laws. Moreover, as AI reshapes HR roles, professionals must develop new competencies, including data analytics, technological adaptability, and strategic decision-making skills. This research underscores the importance of balancing automation with human-centric approaches to foster a more inclusive, ethical, and effective HR ecosystem in the digital era.