The Impact of AI and Automation on HR Practices: Opportunities and Challenges

Abstract

The significance of AI and automation in changing HR procedures is discussed in this study, along with the potential and problems of AI automation in HR. Artificial Intelligence (AI) is revolutionizing labor management in Human Resource Management (HRM) by becoming more and more useful. AI-powered technologies that can automatically screen resumes to identify the most eligible individuals based on predefined criteria have drastically changed the recruiting and selection process, saving a great deal of time compared to manual sorting. AI powered chatbots can interact with applicants, posing open-ended questions and screening them out before they speak with human recruiters. This cuts down on the amount of time needed for manual screening. Using a combination of talent, experience, and even behavioural qualities, AI predictive analysis can analyze large volumes of data to identify individuals who have the best chance of succeeding in a certain profession.AI has proven to be a useful tool in enhancing HR's role in a number of areas, including employee onboarding, diversity and inclusion, compliance and risk management, learning and development, performance management, employee engagement and retention, employee self-service, and mental health and well-being. Theoretical coverage of AI in HRM will be provided in this study, along with an analysis of the benefits and drawbacks of AI use in HRM.