The Role of AI-Driven Strategic Human Resource Management in Enhancing Organizational Innovation and Global Competitiveness: A Review Study
Keywords:
Artificial Intelligence, Strategic Human Resource Management, AI-driven HRM, Organizational Innovation, Workforce Analytics, Generative AI, Competitive AdvantageAbstract
Artificial Intelligence (AI) is considered one of the most impactful technologies that can transform Strategic Human Resource Management (SHRM) through data-informed decision-making, workforce optimization, and innovation-focused human capital management. In this context, the current research seeks to analyze the importance of AI-based SHRM as a means of organizational innovation and global competitiveness through reviewing recent trends in AI-based recruitment, performance management of employees, workforce analytics, employee engagement, and intelligent decision support systems. The study investigates how new AI technologies, such as machine learning, natural language processing (NLP), predictive analytics, deep learning, and generative AI are introduced into human resource management practices to enhance talent acquisition and retention, skills development, and workforce planning. According to the review, AI-driven SHRM enables organizational innovation through fostering knowledge management, employee capability development, digital transformation, and innovation-related decision-making based on evidence. Moreover, AI-powered HR analytics and generative AI applications offer valuable insights for organizations to boost agility and productivity and gain competitive advantages. Nevertheless, the application of AI in HRM poses serious challenges, including issues of data privacy, algorithmic bias, transparency, explainability, ethical decision-making, and human-AI interaction. In this review, the knowledge gaps in the current literature are pointed out, and the necessity of the use of proper AI governance frameworks, explainable AI, and human-centered AI is stressed. It is found from the results that AI-based SHRM can be considered a significant strategic competence for improving innovation performance and organizational adaptability.
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