Human-AI Collaboration in HRM: Implications for Employee Engagement and Organizational Performance

Artificial Intelligence (AI) has revolutionized the landscape of Human Resource Management (HRM) by reshaping the way companies recruit, develop, and retain employees. This paper explores how the human-AI partnerships in HRM can influence employee engagement and organizational performance. A conceptual framework is developed based on the three theories that link AI-based HRM practices to proximal employee outcomes and distal organizational performance indicators: sociotechnical systems theory, self-determination theory, and technology acceptance model. An analysis of empirical evidence from 2018 to 2024 shows that AI-enhanced HRM positively affects the HRM levels of employee engagement when accompanied by algorithmic transparency, perceived fairness and managerial mediation. On the other hand, ungoverned AI applications can bring up algorithmic bias, cause the loss of trust, and lower motivation. The paper proposes a dual-lens perspective that recognizes the benefits but also the human and ethical challenges involved in AI use in HRM and provides suggestions for HR practitioners, technology providers, and organizational decision-making.