Sarcouncil Journal of Economics and Business Management

Abstract: The integration of Artificial Intelligence (AI) in Human Resources (HR) is revolutionizing traditional approaches to performance management and employee development. This study investigates the impact of AI-driven tools on HR functions, focusing on how AI enhances productivity, fosters employee engagement, and supports personalized growth paths. Through AI-powered platforms like Lattice, 15Five, and LinkedIn Learning, data on productivity, learning outcomes, and retention were analyzed, revealing significant improvements in key metrics. The findings demonstrate that AI enables continuous feedback, reduces bias in performance evaluations, and facilitates tailored development programs that align with both organizational goals and employee aspirations. Additionally, predictive analytics proved effective in proactively managing talent, while statistical analyses confirmed higher job satisfaction and retention rates among employees supported by AI tools. Despite the transformative benefits, ethical considerations such as data privacy and algorithmic fairness remain crucial for sustainable AI implementation. This study concludes that AI-driven HR practices, when balanced with human judgment, hold substantial promise for creating an adaptive, efficient, and employee-centered HR environment