Exploring the Impact of AI on HRM: Insights from the IT Sector

The integration of Artificial Intelligence (AI) into Human Resource Management (HRM) has revolutionized HR practices, particularly in the IT sector. This study explores the impact of AI on HRM within five leading IT companies—Infosys, IBM, Mindtree, TCS, and ABB India. A sample of 155 employees was surveyed using a structured questionnaire to assess AI’s influence on key HR functions, including recruitment, performance management, employee learning and development, workforce planning, and employee engagement. The findings highlight a strong positive correlation between AI adoption and improvements in recruitment efficiency, employee performance tracking, and learning outcomes. The study reveals significant positive relationships between all the variables assessing AI's impact on HRM. Additionally, AI-driven solutions are fostering greater organizational culture, improving work-life balance, and aligning workforce planning with strategic goals. Despite challenges in full-scale adoption, the impact of AI on HRM in the IT sector is overwhelmingly positive, with substantial improvements in HR functions, ultimately contributing to enhanced organizational performance and employee satisfaction. The study suggests further AI investment and skill development to maximize its potential across HR departments in IT firms.