Transforming Human Resource Management: The Role of Artificial Intelligence in Recruitment, Performance Management and Learning and Development

Transforming Human Resource Management: The Role of Artificial Intelligence in Recruitment, Performance Management and Learning and Development

Mohamed Abdulkadir Mohamed

School of Business and Social Sciences (SBSS), Albukhary International University, Alor Setar, Malaysia

DOI: https://dx.doi.org/10.47772/IJRISS.2025.908000437

Received: 12 August 2025; Accepted: 18 August 2025; Published: 15 September 2025

ABSTRACT

This paper will discuss how Artificial Intelligence (AI) is transforming core HR practices of Human Resource Management (HRM), such as recruitment and selection, performance management, and employee learning and development. As more and more organizations embrace the use of AI tools, the HR processes continue to become more effective, data-based and personalized. The literature adopted by the paper goes ahead to evidence how AI can enhance talent attainment, performance tracking, and appraisal tools and offer custom-made training services. The paper also addresses the practical applications, which are also informed by the recent research findings, to illustrate how AI is aiding the closing of the skill gap, optimizing the productivity of the involved workforce, and aiding the employees in their respective growth. On the definitions of said findings, reasonable recommendations are provided to help HR departments integrate AI in a way that complements human perception and long-term organizational goals.

Keywords: Artificial Intelligence, Human Resource Management, Recruitment, Performance Management, Development and Planning

INTRODUCTION

Artificial intelligence has become more frequently used in human resource management throughout the fourth industrial revolution, as numerous companies committed to enhancing their efficiency and competitiveness in the marketplace. In businesses adopting a data-centric and digital culture, artificial intelligence (AI) has emerged as the primary driver of business model innovation, managing, planning, and leading process transformation and competitive advantage. (Ransbotham et al., 2020). Application of artificial intelligence (AI) systems in the business environment promises a costly change in consumer experience and competitiveness of businesses in a rapidly changing market, the relations between employers and employees, meanings and forms of careers, and the interactions between people and their technologies. (Connelly et al., 2020). Artificial intelligence (AI) in human resources management is being implemented to change how we approach and manage business, not just automate systems. (Leone et al., 2021) According to the latest research, using AI for human resource management can improve decision-making and eliminate human bias in the hiring, training, and supervision of staff members. As an example, the implementation of the machine learning algorithms during the process of hiring may increase the accuracy of predicting the future performance of potential employees. Chatterjee et al. (2021). AI in the HR sector is also able to assist with improving the efficiency and productivity of employees in the process of distribution of human resources. (Mikalef et al., 2021). Further, there are a number of advantages and consequences for company decision-making that could result from the application of AI in the management of human resources. (Leone et al., 2021). This study is extremely urgent since artificial intelligence (AI) technology is currently advancing quickly and beginning to be used in many facets of life, including businesses. AI has the potential to significantly improve the administration of human resources through improved hiring, employee development, performance management, and decision-making that is faster and more reliable. besides that, this research has the potential to significantly advance knowledge and use of AI in the field of human resource management.

Problem Statement 

Although artificial intelligence (AI) has been increasingly adopted in activities of other business functions, its use in managing human resources (HRM) is still occasional, unstable, and not well comprehended. A significant number of organizations still utilize conventional HR practices, which are usually subject to human ideology, inefficiency, and sluggishness. Although AI can revolutionize recruitment, performance assessment, employee engagement, and workforce planning, researchers do not have an in-depth concept of how AI technologies could be successfully applied to facilitate the mentioned functions within existing real-life HR environments. Besides, the literature lacks research on the practical issues and ethical barriers and organizational preparedness that are needed to implement AI in HRM with success. Such a knowledge disconnect prevents organizations from utilizing AI in fully strategic HR practices. Thus, a need to investigate the role of AI in strengthening the functions of HRM, to determine the obstacles to the use of this technology, and to evaluate the effects of its use on organizational performance and employee performance is observed. The research on its statements will not merely add to the scholarly base of knowledge but will also serve as an advisory to those HR men and business executives who want to streamline Their workforce management approach in the new digital reporting era using AI.

Research Objectives

The main objective of the research is to examine the use of artificial intelligence (AI) in human resource management. The particular goals of the study are

To discuss the current application of artificial intelligence (AI) in HRM practices

To illustrate the advantages of using artificial intelligence in the HRM such as in the areas of recruitment, performance management and employee development.

To examine the challenges and the ethical concerns associated with integrating  artificial intelligence (AI) into HRM

To give recommendations for effective implementation of AI in HR functions.

Research Questions

What are the current applications of artificial intelligence in the practice of human resource management?

What are the main advantages of applying AI in such spheres as recruitment, performance management, and employee development?

What are the issues and ethical dilemmas of incorporating AI in HRM functions?

What are the strategies or recommendations that can enhance effective application of AI in HR practices?

Significance of the Study

This study is important as it discusses the way artificial intelligence (AI) is changing human resource management (HRM) in contemporary organizations. With the growing popularity of AI technologies in business as a method of enhancing efficiency, decision-making, and employee training, it is crucial to learn about the advantages and the downsides of this transition. The study can be of benefit to HR professionals, business leaders, and policymakers, as it describes and identifies potential uses of AI in HR practices, namely, recruitment, performance evaluation, and training. Also, the paper discusses ethics and implementation challenges and provides recommendations that can facilitate the responsible and successful application of AI in HRM. The results have an academic value and help organizations respond to the digitalization of the job environment.

 Scope of the Study

This paper aims to discuss the contribution of artificial intelligence (AI) to human resource management (HRM), particularly in the main HR operations of recruitment, performance appraisal and personnel development. The study focuses on the current use of AI technologies in these fields, their advantages, and the issues and ethical dilemmas connected to them. The literature review is restricted to the literature and studies that have been done from 2020 to 2025 to be relevant and up-to-date with the current developments in the field of AI. It does not discuss the AI usage in the fields of payroll processing, legal compliance, or health and safety management. The sources of secondary data are used to form the findings, mainly peer-reviewed articles, case studies, and industry reports.

Limitations of the Study

The research uses secondary data mainly in the form of existing literature, case studies and journal articles. Because of this, it might not capture in its entirety the current changes and in practice, challenges organizations are presently dealing with in AI within the HRM. Besides, this study focuses on certain HR functions like recruitment, performance management and employee development, but not other HR activities like compensation, compliance, or worker relations. Resource and time limitations also did not allow collection of primary data in the form of interviews or surveys that would have given in-depth information. Finally, the research aims at the overall use of AI in HRM whether in an academic or industry setting.

LITERATURE REVIEW

As technology advances in many categories, including human resource management (HR), artificial intelligence (AI) appears as an important matter. Businesses have begun to implement AI in the past few years to improve HR management’s capability and effectiveness in areas including hiring, employee development, performance management, and employee data management. According to Cobbe & Singh (2021), earlier studies have shown that the potential of AI in HR management is stunning.  (Pallathadka et al., 2021). For example, it has been identified that AI may increase the efficiency and standard of the hiring process when it comes to selecting and recruiting staff. When AI is used in performance management, it has been observed that using these technologies can improve employee performance evaluations’ reliability, accountability, and reliability. (Pantano & Pizzi, 2020). As an example, AI chatbots have gained popularity as a way of simplifying HR processes and improving the applicant experience (Allal-Chrerif et al., 2021; Kshetri, 2021).

AI in recruitment and selection Process

Caldarini et al. (2022) and Vashisht & Dharia (2020) define artificial intelligence (AI) chatbots as computer programs that imitate human conversations with users through the machine learning technique and natural language processing (NLP). They can perform many HR tasks, such as scheduling interviews, screening candidates, answering common questions, and helping them to onboard (Majumder & Mondal, 2021). Moreover, the technology acceptance model (TAM) and the unified theory of acceptance and use of technology (UTAUT) are two theoretical frameworks that support the usage of AI chatbots in HRM (Mariani et al., 2023; Parvez et al., 2022). The UTAUT emphasizes that social impact, anticipated performance, anticipated effort, and facilitating conditions are the elements that affect the adoption of technology (Chang et al., 2022; Korzynski et al., 2023). Another relevant concept is the resource-based view (RBV) of companies, which argues that capabilities and resources are the main drivers of the competitive advantage of an organization (Chowdhury et al., 2023; Malik et al., 2020). AI chatbots can be viewed as a tool that may boost the candidate experience and HR procedures in the context of HRM (Majumder & Mondal, 2021). AI chatbots allow firms to make use of their technological prowess to develop HR operations that are more effective and productive.

AI in Performance Management 

Information technology has influenced exactly how many tasks are performed and, in turn, how those activities are managed (Vrontis et al., 2021). Artificial intelligence and advancements in technology for computers have altered HRM procedures. Advances in high technology are gradually offering alternatives to tasks that were previously completed by humans (Vrontis et al., 2021). For example, the power of AI describes computers that perform cognitive tasks that are typically performed by humans (Graßmann & Schermuly, 2021). According to Chowdhury et al. (in press), the application of AI in business tasks has grown by over 70% in the past five years and is significantly changing workspaces by automating jobs that were previously completed by human beings. Particular instances include gathering information, analyzing it, and summarizing it into understandable feedback. Implementing artificial intelligence in performance management has allowed managers to keep close monitoring on their employees. Significant quantities of data can be gathered, saved, examined, and condensed into personalized feedback (Tong et al., 2021). Accordingly, scientists predict that the use of AI-generated feedback will transform performance management. A study carried out in Indonesia by Tyagi et al. (2023) examined the impact of introducing an artificial intelligence-based HRM system on worker productivity. The results of their study prove that the process can significantly improve the performance of workers, especially with regard to output and effectiveness. (Bag et al., 2021)

AI in Training and Development of Employee

In this extremely competitive worldwide market. Artificial intelligence (AI) has grown in popularity in TD as employers search for innovative methods to reskill their employees. These efforts are based on the well-established guidelines of staff training that require not only the in-office training but also the practical practice. In accordance with Knowles’ andragogy theory, it is crucial to highlight the problem-solving approach, examine autonomy, and determine the skill’s applicability to adult self-directed learning. Some of the ways in which employees can be assisted to achieve better performance and influence their learning comprise customized education, self-directed learning, and adaptive feedback. Jaiswal, Arun, and Varma (2022) state that AI training programs often address all of these needs by building a database and a data pattern to comprehend individuals. Using AI algorithms to analyze written comments, grades, and decisions, firms can enhance employee engagement and motivation, as well as retain them. The instructor can modify their classes based on what the worker desires and requires. The well-known theories “UTAUT” and “TAM” have inspired discussion on integrating AI into training and development applications. These theories predict that customers are inclined toward accepting practical formats of straightforward technology. Training programs driven by AI that address skill gaps, enhance learning results, and boost workplace productivity will be well received by staff as well as customers. (Zirar, Ali, & Islam, 2023)

DISCUSSION 

This study aimed to explore the ways in which artificial intelligence (AI) is currently transforming the sphere of Human Resource Management (HRM), and more precisely, the recruitment and selection process, performance management process, and process of staff learning and development. The literature has clearly demonstrated that AI technologies are no longer a futuristic proposition but a proactive and powerful constituent of the manner in which HR functions are being undertaken in the current dispensation. Regarding recruitment and selection, AI has allowed organizations to automate the activities of candidate search, CV scans, and pre-screening. It has also lessened the time-to-hire considerably and enhanced the engineering quality of recruiting decisions thanks to employing algorithms that process as much candidate information as possible. The tools used on an AI basis can now evaluate not only the qualifications but also personality types, communication methods and cultural fit. The tools bring something that was not possible in terms of data-driven decision making under the traditional way of recruiting. When it is related to performance management, AI has allowed real-time monitoring of performance, as well as constant feedback mechanisms. It uses the power of data analytics, as AI systems can gather and process the information about an employee, including their behavior patterns, efficiency, and performance, to give personal recommendations (Tong et al., 2021). It is not only beneficial to the managers in making sound judgment but also makes the employees realize what is going on and what they can improve on. The positive influence of employment in AI applications in the tracking of performances is also confirmed, as research in Indonesia attests to the increased productivity and efficiency of the employees (Tyagi et al., 2023). In regard to learning and development, AI is also useful in the sense that it provides adaptive learning platforms that address the personal needs of employees. Training systems driven by AI present customized learning routes, suggest employee development content, and recommend freshening of training content, all depending on level of performance and level of interest (Jaiswal et al., 2022). The provision of skills gaps can also be possible due to AI, as can the provision of particular upskilling programs that will allow employees to be more inclined to meet the requirements of varied jobs (Zirar et al., 2023).  In all three HR functions, the prevalent topic is utilizing AI to increase decision-making, eliminate biases, lower time, and customize the workforce experience. However, on the one hand, where the literature highlights the advantages, it also points to the possibility of certain complications related to ethical issues, data protection and dangers of losing their jobs, though these are not the subject of this paper. On the whole, the AI emergence in the HR sphere implies a different approach to HR that is less tactical and less based on operations but rather on strategy and big data. The main reason is the findings imply that AI, when thoughtfully deployed, will help the HR workforce make smarter choices and design more productive and effective working environments.

CONCLUSION

The role of Artificial Intelligence (AI) in Human Resource Management (HRM) cannot be underestimated, as it is transforming the field in a very basic manner. This paper has discussed the manner in which AI is changing three important HR functions, namely recruitment and selection, performance management, and employee development and training. In terms of making the hiring process more efficient by making data-based decisions, as well as in terms of offering personalized performance feedback and a personalized learning experience, AI has brought efficiency and innovation to the HR sector. The adoption of AI has helped the HR professionals to make more informed decisions, minimize bias and increase employee engagement. It is important to mention, though, that though AI can bring numerous advantages, it should be applied carefully, ethically, and transparently and be under the control of humans. With the further development of AI, HR professionals will have to adjust to it, acquiring digital skills and adopting a new paradigm of mutual cooperation in which technology will support but not substitute human touch. After all, the future of HR is in the ability to coexist with AI systems and human insight.

RECOMMENDATIONS

In order to achieve successful implementation of Artificial Intelligence into the Human Resource Management, a number of practical measures should be performed by the organizations. First, organizations should spend on training processes in order to make HR professionals relevant with the required skills that they should have to comprehend and deal with AI tools. The upskilling will lessen resistance and improve adoption. Second, one should first implement an AI-enabled system and then proceed with implementing it in performance management and employee development later when the organization becomes more experienced. Moreover, ethical implementation and transparent AI should be ensured. Transparency of the use of AI tools in actions such as the hiring process or the performance assessment will create trust among the employees. Though AI is able to provide useful insights, it is essential to ensure that a balance between automation and human opinion is struck when the decisions made will have a direct effect on the careers of employees. Moreover, the use of AI is supposed to be tailored to the requirements of each organization (reaching its full potential in terms of goals, culture, and workforce needs). Finally, monitoring and evaluation of the effect of AI on HR outcomes, including engagement, retention, and learning effectiveness, will enable the continual enhancement of the technology and the fact that its application is having a significant impact.

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