Abstract:
Artificial Intelligence (AI) is a transformative force in Human Resource Management (HRM),
revolutionising how organisations manage recruitment, performance, and employee engagement.
This study investigates AI adoption in HRM within Sri Lanka, with a critical focus
on strategic drivers, barriers, and ethical concerns. Employing a mixed-method research design,
the research combines empirical evidence on the strategic drivers, organizational barriers,
and ethical implications of AI implementation in HR processes. Based on quantitative survey
responses from 97 HR managers and qualitative interviews with 15 Human Resource (HR)
directors across various industries, perceived usefulness and organisational readiness were identified
as key drivers of AI implementation. Ethical concerns regarding transparency, data bias,
and dehumanisation of processes still linger. Adopting from the Resource-Based View and
Technology Acceptance Model, the study concludes a three-stage AI-HRM integration framework,
melding strategic imagination with ethical management and staff mobilisation. The findings
have implications for policy, organisational practice, and subsequent academic research,
implying responsible AI governance and capacity building within HR systems of developing
economies. This study places incisive comments in context on the intricate dance of HRM
practices and AI technologies in the emerging economies. This research ensures that strategic
benefit can be gleaned from embracing AI only if it is spearheaded by readiness, ethical responsiveness,
and organisational patronage.
