The Role of Artificial Intelligence in Transforming Human Resource Management: Opportunities and Challenges

Abstract

This study explores the transformative role of Artificial Intelligence (AI) in Human Resource Management (HRM), focusing on theoretical modeling of its functional impacts, ethical constraints, and strategic implications. The research aims to identify key opportunities and challenges associated with AI integration into HR practices. Using a conceptual framework and mathematical formalism, this study simulates AI integration across recruitment, performance appraisal, and employee engagement. A constraint-aware optimization model is employed to assess ethical considerations, while scenario-based evaluations illustrate domain-specific applications without relying on empirical datasets. AI is projected to reduce recruitment workload by up to 55%, increase personalization in learning and development by 30–50%, and improve predictive succession planning accuracy by 25–30%. Ethical utility modeling demonstrates a trade-off between AI performance and transparency, emphasizing the need for embedded governance frameworks. The study provides a strategic blueprint for responsible AI adoption in HRM, guiding organizations in balancing efficiency with ethical compliance. This research contributes a novel AI-HRM Integration Framework and formalized models to the field, addressing existing gaps in empirical and ethical considerations.