IMPACT AND EFFECTIVE USE OF AI IN RECRUITMENT, PERFORMANCE MANAGEMENT, AND HR STRATEGY

Abstract

Artificial Intelligence (AI) is increasingly permeating Human Resource Management (HRM), fundamentally altering how organizations recruit, evaluate, and strategize about their human capital. This study investigates the impact of AI tools in three core HR domains: recruitment, performance management, and HR strategy, focusing on both benefits and challenges. Drawing on recent literature from 2018–2025, case studies, and systematic reviews, this paper identifies how AI enhances efficiency, decision quality, and strategic alignment, and also uncovers issues around bias, privacy, transparency, employee well-being, and ethical governance. Recommendations are offered for effective deployment, including hybrid human AI models, bias audits, employee involvement, ethical frameworks, and AI literacy for HR practitioners. The findings suggest that while AI has strong potential to transform HR functions, its successful application depends on mindful integration that respects human values, legal constraints, and organizational culture.