Chapter 10: Unveiling the Implication on Employees’ Perception and Engagement Level Due to AI-HRM Integration

The rapid advancement of artificial intelligence (AI) has significantly influenced human resource management (HRM), presenting both opportunities and challenges for individuals and organizations. This study provides a comprehensive analysis of the integration of AI in HRM, exploring its multifaceted implications on employee perceptions, engagement, and organizational practices. A systematic literature review was conducted, focusing on journal articles published between 2018 and 2024. The review includes studies examining AI’s role in enhancing HR processes, such as recruitment, employee monitoring, performance evaluation, and training, while emphasizing its ethical and legal considerations. Findings reveal that while AI has the potential to revolutionize HRM by streamlining processes and improving decision-making, its application raises concerns regarding employee trust, data privacy, and bias in algorithms. The study highlights diverse perspectives on the relationship between AI and HR, showcasing the dual role of AI as a tool for efficiency and a challenge to human-centric management approaches. A novel contribution of this paper is the development of an AI + HR model framework, specifically designed to assist HR managers in navigating the complexities of AI-driven systems. This framework provides practical insights for leveraging AI in HRM to enhance employee engagement and organizational outcomes. Despite its contributions, the study is limited to a specific timeframe and excludes certain types of literature, such as non-English articles and conference papers. Nevertheless, it offers valuable implications for HR practitioners and researchers by advancing the understanding of AI’s transformative role in HRM.