Integrating AI for Strategic HR Efficiency: Empirical Insights from Emerging Digital Ecosystems

The use of artificial intelligence (AI) in human resource management (HRM) is now an imperative method of enhancing the efficiency of operations and strategic alignment in digital-first businesses. In this research, the mediating effect of AI in facilitating essential human resource (HR) functions among IT firms in Chennai, a fast-emerging digital ecosystem in India, is explored. This study relies on a conceptual framework of six core antecedents AI-enabled strategic workforce planning, proactive management support, smart recruitment, data-driven training, competitive forces, and performance analytics to examine how AI facilitates the transition from traditional HR practices to agile, effective, and evidence-based HRM. An organized survey of 172 managerial staff and HR professionals was undertaken, and the information was analysed by applying SPSS for descriptive statistics, reliability, regression, and correlation. Structural equation modelling (SEM) is applied to verify the refereeing effect of AI on the relationship between antecedents recognized and the HR effectiveness. The results have shown that the use of AI significantly enhances recruitment accuracy, personalizes employee development, and enhances performance management systems. Organizational support and competitive market forces reinforce AI’s transformative potential in HR. This chapter contributes to existing HRM literature by presenting empirical knowledge from an emerging economy and underscores the strategic imperative of AI adoption in developing adaptive, forward-looking HR systems. It offers practical recommendations for HR professionals, digital strategists, and policymakers seeking to align human capital strategy with technological advancement in competitive environments.