Artificial Intelligence (Ai) In Human Resource Decision-Making: Opportunities, Risks, And Ethical Challenges

Abstract

The rapid adoption of Artificial Intelligence (AI) in Human Resource (HR) decision-making is transforming the way organizations manage talent, enhance efficiency, and support strategic workforce planning. AI-driven tools are increasingly used in recruitment and selection, performance evaluation, employee engagement, and predictive workforce analytics. While these technologies offer significant opportunities such as improved decision accuracy, reduced administrative workload, and data-driven insights, they also introduce substantial risks and ethical concerns. Key challenges include algorithmic bias, lack of transparency in automated decision systems, data privacy and security issues, and potential erosion of human judgment in critical employment decisions. This study examines the role of AI in HR decision-making by systematically analyzing its opportunities, associated risks, and ethical challenges. Drawing on existing literature, industry practices, and ethical frameworks, the paper highlights the need for responsible AI governance, human–AI collaboration, and transparent decision-making processes in HR functions. The findings emphasize that while AI can enhance HR effectiveness, its deployment must be carefully managed to ensure fairness, accountability, and trust. The study contributes to the growing discourse on ethical AI in human resources and offers practical insights for HR professionals, organizational leaders, and policymakers seeking to balance technological innovation with ethical responsibility.