The Impact of AI and Automation an HR Functions in India

Abstract

The Fourth Industrial Revolution is driving the digital transformation of organizations across the globe, with Artificial Intelligence (AI) and automation emerging as major catalysts of change in business functions. Human Resource Management (HRM), traditionally focused on administrative tasks, is undergoing a paradigm shift with AI-enabled processes redefining recruitment, training, and employee engagement. This research paper investigates the transformative influence of AI in these three functional areas within Indian organizations, considering both potential benefits and emerging challenges. 

A mixed-method approach was adopted, integrating structured surveys (n = 20) and semi-structured interviews (n = 2) with HR professionals from sectors including IT, banking, healthcare, and education. The findings indicate that AI significantly enhances recruitment by reducing time-to-hire, improving candidate-job fit, and automating the screening process. In training and development, AI contributes through personalized learning, adaptive content delivery, and real-time feedback. Regarding engagement, tools such as chatbots, pulse surveys, and sentiment analysis facilitate continuous feedback and employee support. However, challenges such as data privacy, algorithmic bias, high implementation costs, and lack of technical readiness persist. 

The paper concludes that while AI can revolutionize HRM, its success depends on strategic implementation, human oversight, ethical governance, and organizational preparedness. Recommendations include phased AI adoption, investment in AI literacy among HR professionals, and policies ensuring transparency and accountability. The study contributes to the limited empirical literature on AI in Indian HRM and provides practical insights for HR leaders navigating digital transformation.