Analysis of the Use and Impact of Artificial Intelligence on Managerial Decisions and Organizational Processes

Artificial intelligence (AI) is altering the hiring, training and management of staff in companies, thus transforming decision-making in human resource management (HRM) from past data-driven to present. This paper examines how artificial intelligence is changing HR best practices and highlights the main factors influencing AI adoption and the consequent effects on organizational effectiveness. We investigate how employee’s digital abilities, artificial intelligence experience and self-confidence in using technology impact AI integration in HRM through exploratory factor analysis (EFA), correlation analysis, network analysis, and decision tree regression. Although age and education have just a small impact, the results reveal that digital competency is the largest driver of AI adoption followed by artificial intelligence experience and self-efficacy. However, the adoption of artificial intelligence is not without difficulty. The main obstacles for companies trying to include artificial intelligence into HR are algorithmic bias, openness issues and ethical dangers. Organizations should invest in AI-focused training programs, guarantee fairness in AI-driven hiring and evaluations, and maintain human supervision to balance automation with ethical decision making to maximize AI while avoiding these risks. Future studies should investigate how the acceptance of artificial intelligence in HR changes over time, how it affects other sectors and how employees really feel about collaborating with HR systems driven by artificial intelligence. AI has great potential to improve HR efficiency and decision making with proper application; yet its success depends on ensuring it remains inclusive, ethical and transparent even as such.