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October 5, 2025European Public & Social Innovation Review4 citationsOpen Access

Examining the Sustainable Integration of Artificial Intelligence in Human Resource Digitalization in the Context of Industry 4.0

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STSabu ThomasDNDhanya S. NairJJJeena Joseph

Key Points

  • AI integration significantly enhances employee performance, workforce optimization, and HR digitalization.
  • Key influences on organizational network analysis include employee performance, safety, and real-time feedback.
  • 75% of variation in organizational network analysis can be explained by five AI dimensions like morale and performance.
  • Strategic AI integration is crucial for aligning human capital with technological infrastructure for sustainable growth.

Abstract

Introduction: Artificial Intelligence (AI) is reshaping workplace innovation through technologies such as robotics, augmented reality, IoT, and the metaverse. Within the Industry 4.0 paradigm—centered on flexibility, resilience, precision, and productivity—Human Resources (HR) must adapt to align human potential with technological advancements. Methodology: This study explores AI integration in HR functions, focusing on HR automation, organizational network analysis, and structural design, in the context of technological convergence and agile practices. Results: The analysis reveals that all five AI dimensions—employee performance, occupational safety, salary administration, employee morale, and real-time feedback—significantly affect organizational network analysis. However, only employee performance, salary administration, and morale impact HR digitalization. In terms of organizational design, morale, safety, and real-time feedback are key influencing factors. The conceptual model shows that 75% of the variation in organizational network analysis is explained by the five AI dimensions. Discussion: These results underscore the critical role of AI in supporting agile HR practices that enhance talent retention, performance alignment, and workforce optimization. Conclusions: Strategically integrating AI into HR functions is essential for creating synergy between human capital and technological infrastructure, fostering innovation, operational efficiency, and sustainable growth within Industry 4.0 environments.

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Cite This Study

Thomas et al. (2025) studied this question.

synapsesocial.com/papers/68e24e6fd6d66a53c2473bf7https://doi.org/10.31637/epsir-2026-2044
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