ISBN: 978-93-94174-93-1

AI-Driven Talent Acquisition: Transforming Human Resource Management in the Digital Economy

Department of Commerce, Shri Krishnaswamy College for Women, Chennai, Tamilnadu, India

Artificial Intelligence (AI) is rapidly transforming Human Resource Management (HRM) by shifting Its role from a traditionally administrative function to a strategic organizational partner. This chapter Explores how AI-driven technologies are redefining talent acquisition, employee engagement, workforce Planning, and overall HR operations in the digital economy. By leveraging machine learning, predictive Analytics, and automation, AI enables HR professionals to streamline routine processes such as Recruitment, payroll, and performance management, thereby enhancing operational efficiency and Reducing human error. The integration of AI facilitates data-driven decision-making by generating Actionable insights from large volumes of workforce data. It supports proactive strategies such as Predicting employee turnover, identifying skill gaps, and optimizing talent management practices. Additionally, AI enhances employee experience through personalized onboarding, adaptive learning Systems, and real-time support via conversational agents. The chapter further highlights emerging Trends, including AI-driven recruitment, intelligent automation, predictive workforce analytics, and Generative AI applications in HR innovation. It also emphasizes the role of AI in strengthening Diversity, equity, and inclusion (DEI) initiatives and promoting employee well-being through sentiment Analysis and behavioral insights. Despite these advancements, the adoption of AI presents challenges Related to ethical considerations, data privacy, and algorithmic bias. Therefore, responsible Implementation, transparency, and regulatory compliance are essential. Overall, AI serves as a Powerful enabler that enhances strategic HR capabilities, supports informed decision-making, and Drives sustainable organizational growth in an increasingly competitive and technology-driven environment.

*Corresponding author; e-mail: deraindevis.1811@gmail.com

Cite this Chapter: Derain Smily D. P. 2026. AI-Driven Talent Acquisition: Transforming Human Resource Management in the Digital Economy. In: Dr. Lubna Suraiya Dr. P. Kanchana (Eds.). Commerce Reimagined: The Future of Trade and Transactions (Vol-III). Excellent Publishers, India. pp. 52-73. doi: https://doi.org/10.20546/978-93-94174-93-1_3_4