Ethical Implications of Artificial Intelligence in Human Resource Management

Abstract

The emergence of artificial intelligence (AI) in human resource management (HRM) has transformed traditional human resource (HR) processes such as recruiting, performance appraisal, employee surveillance, and decision-making. While AI increases efficiency, accuracy, and data-driven decision-making, it also raises ethical challenges for organisations. Ethical Issues of AI in HRM – Algorithmic Bias, Transparency, Data Privacy, Responsibility. Research shows that AI-driven systems can inadvertently reinforce biases in hiring and promotion based on flawed data inputs or constrained design. AI algorithms for HR applications are often inscrutable, leaving HR professionals in a ‘black box’ scenario, where it is difficult to comprehend or justify certain decisions. Like most contemporary topics, ethical issues related to employee data privacy and surveillance can harm employee trust and company culture. Conceptually and analytically, this paper reviews AI ethics and HRM literature together with previously developed frameworks. It highlights the need for ethical standards and responsible deployment of AI to ensure fairness, accountability, and inclusiveness. Results show that AI complements HRM, but ethics must be taken into consideration for responsible and sustainable labour management.