Adoption Of AI In HRM In Resource Constrained Organizations: A Study Of MSME Segment In India

Artificial Intelligence (AI) is increasingly reshaping every aspect of management, human resource management (HRM) is no exception. While large organizations are using AI for day-to-day HR functions, it is relevant to understand if smaller organizations having scarce resources are also using AI to carry out such roles.This study explores the perception and usage of AI by the HR departments of micro, small and medium enterprises (MSME) in Hyderabad.The study adopted qualitative technique and the primary data was collected through in-depth interviews of HR professionals in MSME sector. The study highlights the benefits and challenges of AI adoption in HRM, specifically in the context of resource-constrained small-scale organizations. Through integrating qualitative and quantitative data, the research found interesting insights about both human side as well as technological excellence of AI adoption patterns of HR departments in this segment. It offers recommendations to the decision and policy makers in this direction.