ARTIFICIAL INTELLIGENCE (AI) IN HUMAN RESOURCE MANAGEMENT: OPPORTUNITIES, CHALLENGES, AND ETHICAL IMPLICATIONS IN THE INDIAN CONTEXT

Abstract

India is rapidly evolving digital infrastructure, expanding corporate ecosystem, and demographically diverse workforce have made it a fertile ground for innovation in Human Resource Management (HRM). Among these innovations, Artificial Intelligence (AI) has emerged as a transformative force, reshaping traditional HR practices such as recruitment, performance management, employee engagement, and retention strategies. With the proliferation of AI tools like recruitment chatbots, sentiment analysis software, and predictive attrition models, Indian organizations are increasingly exploring AI to gain competitive advantages in managing talent. However, the Indian context presents unique challenges. Cultural heterogeneity, linguistic diversity, and complex labor regulations necessitate a localized approach to implementing AI-driven HR systems. For instance, recruitment algorithms must accommodate a multilingual environment, while performance evaluation tools must account for the hierarchical nature of Indian workplaces. Additionally, ethical concerns around bias, transparency, and employee surveillance continue to raise questions about the responsible deployment of AI in HR processes. This study seeks to bridge the gap in current research by examining both the transformative potential and ethical ramifications of AI in HRM within Indian organizations. Specifically, it aims to: Investigate how AI can enhance HR efficiency while addressing India-specific socio-cultural and legal challenges. Assess ethical concerns, including algorithmic bias, data privacy, and employee trust in AI-driven HR systems.