Influence of Generative Artificial Intelligence on Human Resource Management Practices to Enhance Firm Performance, Productivity, and Resource Allocation

Abstract

The current study aims to investigate how the adoption of Generative Artificial Intelligence in human resource practices influences organizational efficiency and decision-making. The usage of generative AI tools transforms firms’ operating principles and approaches to managing human resources in various fields. The current research was conducted to assess the influence of these technologies on recruitment, workforce planning, employee engagement, performance appraisal, and overall functioning. The quantitative method was chosen as the most appropriate, and questionnaires were designed to estimate the level of impact on the participants. Regression analysis was conducted to identify the correlation between variables and establish the significance of the result. The results of the study demonstrated that adopting generative artificial intelligence technologies improves operational efficiency, which positively impacts the organizations’ performance and optimal resource use. As a result, the paper contributes to the overall understanding of the application of such technologies and their influence on firms’ functioning. Moreover, the findings may be beneficial for various stakeholders, including organizational leaders, human resource managers, and policymakers, as they wish to increase the efficiency of their operations and maximize profit by employing generative AI technologies.

Keywords: Artificial Intelligence, Firm Performance, Generative AI, Human Resource Management, Productivity, Resource Allocation.