Unveiling the Potential of Artificial Intelligence in Human Resource Management: A Systematic Review of Adoption Strategies, Challenges, and Future Directions

Artificial intelligence (AI) has emerged as a transformative force in human resource management (HRM), as it improves efficiency, decision-making processes, and employee experience while offering an unprecedented opportunity to create value for consumers, employees, and organizations. Despite its transformative potential, recent studies reveal a disconnect between expectations and the benefits of implementing AI. This systematic review examines the current state of AI in HRM, identifying key adoption strategies, challenges, and organizational prerequisites for successful integration. It provides a comprehensive, objective understanding of the organizational resources necessary to enhance AI capabilities in HRM, enabling organizations to fully benefit from them. Using CiteSpace for bibliometric analysis, the study traces the evolution of AI in HRM from algorithmic advancements to practical applications. Our findings highlight that successful AI adoption requires more than just technological investment; it demands leadership commitment, workforce upskilling, cultural adaptability, and cross-functional collaboration. We also discuss theoretical contributions such as refining AI-HRM frameworks and practical implications, including strategies for mitigating implementation risks. Finally, this study provides actionable insights for HR professionals, policymakers, and researchers seeking to harness AI’s full potential while addressing adoption barriers. By bridging the gap between expectations and reality, our work lays the foundation for future research on AI-driven HRM innovation.