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Journal of European Economic History
2026, Volume:7, Issue :2 : 480-490 doi: https://doi.org/10.61336/JEEH/26-2-37
Research Article
Integration of AI in HR Functions: A Study on Efficiency, Accuracy, and Decision-Making
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Professor, Department of MBA, A G M Rural College of Engineering and Technology, Varur, Hubballi, Karnataka
2
Professor & Director, Dayananda Sagar Business School, Bangalore
3
Associate Professor, Department of Management Studies, Dayananda Sagar College of Engineering, Bengaluru, Karnataka , India
4
Associate Professor, IMS - Ghaziabad (University Courses Campus)
5
Professor of MBA, Presidency College (Autonomous), Hebbal, Bengaluru
Abstract

AI has transformed HRM by providing better proficiency, accuracy & strategic decision-making. Today, companies are applying contemporary AI technology to HR tasks such as recruitment, employee engagement, payroll, workforce planning, training, and performance appraisal, among other domains. This study explores AI infusion into HR functions based on research data gained from 233 respondents including HR professionals, managers, and employees. It employs percentage analysis, weighted mean analysis, correlation, regression, and chi-square tests in assessing AI's impact on HR operations. Findings indicate that AI helps increase the recruitment speed, decreases human errors, improves the analytics for employees, and aids strategic workforce choices in organizations. Statistical analysis indicates a strong positive association between introduction of AI and HR operational performance. The results of this study also show challenges such as ethical issues, employee opposition, privacy issues regarding data, and cost issues. AI is considered a critical component of modern HR systems, so it is proposed by the paper to establish ethical governance of AI, to provide a consistent basis for training of employees, and to promote balance between human and AI to sustain the organization.

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