Impact Of Artificial Intelligence on HR Efficiency and Employee Experience in Indian IT Firms

Abstract

Background: Artificial Intelligence (AI) has transformed several aspects of organisational operations, particularly in human resources (HR) management. Indian Information Technology (IT) organisations are progressively using AI-driven tools and approaches to automate administrative duties, optimise talent acquisition procedures, and augment employee engagement. This research seeks to analyse the influence of AI on human resource efficiency and employee experience in the Indian IT industry.

Methods: A cross-sectional, mixed-methods design was adopted. Quantitative data were collected from 200 HR professionals and 400 employees across five major Indian IT firms via online surveys. Qualitative insights were gleaned from semi-structured interviews with a subset of 20 HR managers and 30 employees. Data analyses involved descriptive and inferential statistics for the quantitative component, while thematic analysis was used for qualitative data to explore perceptions regarding AI-enabled HR processes.

Results: Findings indicated that AI implementation improved HR operational efficiency by reducing repetitive tasks and enabling data-driven decision-making. Quantitative data showed a significant increase in HR productivity indicators (p < 0.05) and faster time-to-hire metrics (p < 0.01). Employee experience was positively influenced through personalized training recommendations, streamlined onboarding, and real-time performance feedback. However, concerns regarding data privacy, workforce displacement, and over-reliance on automated systems were also highlighted.

Conclusion: AI interventions in HR processes have led to tangible improvements in operational efficiency and employee experience in Indian IT firms. Although adoption challenges remain—particularly around data protection and potential job redundancies—strategic deployment of AI can unlock further gains for both organizations and employees.