The Role of AI in Redefining HRM: Automation, Performance Optimization, and Employee Retention

Abstract

Background: Lastly, the use of artificial intelligence (AI) in Human Resource Management (HRM) is redesigning the major factors, including automation, performance, and employee turnover. Nonetheless, there are still questions arising about how AI is being applied in these areas in disparate organizations and industries.

Objective: The purpose of this research investigation is to assess the impact of artificial intelligence on repositioning Human resource management, with more emphasis on how advanced technologies enhanced by artificial intelligence impact automation, performance management, and employee retention.

Methods: An actual quantitative research approach formatted through the use of structured questionnaires was administered among Human resource professionals, managers, and Employees of these firms. A sample of 250 respondents was used, and data was collected and analyzed using descriptive statistics, correlation analysis, and regression models. Cronbach’s alpha test was used to determine the internal consistency test of the developed questionnaire while the Shapiro-Wilk test was used to determine the normality of the data collected.

Results: The Shapiro-Wilk test results showed that the data have assumed a non-normal distribution. The value that Cronbach’s alpha yielded showed low internal consistency of the survey items, with a value of 0.075. Means presented in the descriptive analysis revealed that even though AI had more positive perceptions, the ratings suggested only an average level of satisfaction with the effects it brings to the HR processes. Descriptive and inferential statistics showed significant positive relationships between AI usage for performance improvement and team output, but moderate connections between AI and turnover rates.

Conclusion: AI is attributed to a positive expectation in the context of HRM, specifically in the promotion of automation of the process and the improvement of efficiency. While the overall effectiveness of AI is still a matter of debate, the effects of this technology have yet not been conclusively linked to improvements in employee retention levels; there is a need to refine the scare metrics and to better understand how AI can be effectively deployed to deliver maximal benefits with standard ways or across different HR specialties. This research implies that AI has significant possibilities in addressing aspects of SHRM that organizations have not hitherto capitalized on and that there are issues of implementation and standardization that have to be grasped if organizations are to get the best out of AI.