In today’s rapidly changing technology, organizations tend to adapt to new technologies to stay up in the market; the incorporation of AI into HR practices has become the new trend in all the organizations. This intersection is reshaping how organizations drive employee performance. AI offers new ways to evaluate employee performance without any bias, new training and development programs, and also personalized feedback to employees. It also helps in recruitment and in performance appraisal. Traditional HR practices have biased evaluation and a slow process of analyzing the employee performance. This paper examines the transformation in HR practices with AI tools that provide better results in employee performance, positioning AI-enabled HR practices as the independent variable influencing employee performance, which serves as the dependent variable. Furthermore, it identifies HR processes as the key mediating factor in this relationship, acting as the channel through which AI’s impact on employee performance is realised.This paper also argues that the effective intersection of AI and HR requires a balance between technology and a human touch, ensuring that technological advancements empower rather than diminish the human experience at work. Keywords: HR practices, Digital transformation, Artificial Intelligence, Employee Performance, AI-based recruitment, HR technology transformation, Employee Evaluation
Prasanna et al. (Tue,) studied this question.