The Impact of Artificial Intelligence on HR Practices: Exploring How AI Tools Are Reshaping Recruitment

Abstract

This research explores the impact of Artificial Intelligence (AI) on Human Resources (HR) practices within the tech industry in Islamabad, focusing on core functions such as recruiting, onboarding, employee engagement, performance management, and learning and development. Employing quantitative methodologies, the study assesses the efficacy of AI tools in transforming these HR practices, thereby enhancing organizational efficiency and employee satisfaction.The analysis revealed significant positive effects of AI across all studied HR functions. AI-driven recruiting tools demonstrated notable improvements in the efficiency and quality of the hiring process, while AI in employee onboarding enhanced new employee integration and retention rates. Moreover, AI applications in employee engagement and performance management were found to substantially increase employee interaction and satisfaction, as well as provide more accurate and timely performance assessments. Additionally, AI-facilitated learning and development tools proved effective in personalizing training programs and aligning them more closely with both employee career goals and organizational needs.The findings suggest that the integration of AI into HR practices not only streamlines operations but also plays a crucial role in fostering a more engaged and competent workforce. However, the study acknowledges limitations such as its geographical and industry-specific focus which may affect the generalizability of the results. It also suggests that qualitative data could enhance understanding of the human-centric impacts of AI in HR.Future research is encouraged to expand the scope geographically and across sectors, utilize qualitative methods to gain deeper insights into employee perceptions, and undertake longitudinal studies to understand the long-term effects of AI on HR practices.