Examining the impact of artificial intelligence on employee performance in the digital era: An analysis and future research direction

Abstract

A new era of digital transformation has begun with the rapid integration of Artificial Intelligence (AI) technology with human management, changing traditional methods to people management. Due to the unprecedented digital transitions that businesses are seeing, AI integration in Human resource management (HRM) has become a significant area of focus. This systematic literature critically examines how AI is altering the landscape of its impact on employee performance in the HRM area in the era of digital transformation. The Scopus database, where 73 peer-reviewed articles are found These are subjected to integrated methodology of Bibliometric analysis, Content analysis, Epistemological analysis and Substantive analysis to identify the emerging themes, trends and contribution of theory in the AI impact on the employee performance in digital transformation era. The results identifies the major themes a) Digital Transformation in HRM for enhancing Efficiency b) Deep learning and neural networks in HRM c) Innovation and Technology adoption in HRM and d) Human resource investments. From the epistemological analysis results “Resource Based theory,” has been mentioned highest (4 times) and shows how HRM is evolving in the context of digital change. With 3 instances each, institutional theory with empirical study is being the most common method. Substantive analysis shows the Digital Transformation, Employee Performance, Work life balance, and Organisational change are the significant criteria, whereas sub-criteria included Innovation, performance management, and Techno stress. Additionally, it investigates the challenges and opportunities arising from how AI is incorporated into HRM procedures and its implications for workforce dynamics. The study has proposed a model of 3 major criteria and 14 sub criteria for future research actions based on substantive analysis. AI integration in HRM requires strategic planning, ethical considerations, and employee well-being. Organisations that recognise these consequences and handle issues will be more prepared for AI-driven HRM.