Artificial Intelligence In Hrm : Transforming Talent Management In Hyderabad'S It Industry

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Srinivasa Rao Madaka, Bablee Chandra

Abstract

The integration of Artificial Intelligence (AI) in Human Resource Management (HRM) is revolutionizing the way organizations manage talent, particularly in the IT industry. Hyderabad, as a major IT hub in India, is experiencing rapid advancements in HR practices driven by AI technologies. This study examines how AI is transforming key aspects of talent management, including recruitment, employee development, performance management, and retention in the IT sector. AI-powered tools, such as predictive analytics and machine learning algorithms, are reshaping the recruitment process by enabling more efficient candidate screening, improving the matching of candidates to job roles, and minimizing human bias. These technologies enhance HR professionals' ability to select the most qualified candidates, leading to better hires and reduced turnover rates. Additionally, AI is revolutionizing employee engagement by providing personalized learning and development programs based on data-driven insights, ensuring continuous skill enhancement. AI-powered performance management systems offer real-time feedback, enabling HR departments to track progress, identify areas for improvement, and create personalized growth plans for employees, thereby enhancing productivity and employee satisfaction. Despite the significant benefits, the study also explores the challenges that come with the adoption of AI in HRM, including concerns over data privacy, ethical issues related to automated decision-making, and the risk of dehumanizing employee relations. Furthermore, the paper highlights the importance of balancing AI technologies with human judgment to maintain fairness and transparency in HR processes. Overall, this research demonstrates the transformative potential of AI in shaping talent management strategies in Hyderabad’s IT industry, while addressing the challenges and ethical considerations that need to be managed for successful implementation.

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How to Cite
Srinivasa Rao Madaka, Bablee Chandra. (2026). Artificial Intelligence In Hrm : Transforming Talent Management In Hyderabad’S It Industry. European Economic Letters (EEL), 16(1), 705–713. https://doi.org/10.52783/eel.v16i1.4187
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