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The Legal Challenges and Opportunities of Using AI in HR Functions
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Author(s): Mohit Yadav (JGBS, O.P. Jindal Global University, India), Narayanage Jayantha Dewasiri (Faculty of Management Studies, Sabaragamuwa University of Sri Lanka, Sri Lanka & Qasim Ibrahim School of Business, Villa College, Maldives)and Perfecto G. Aquino Jr. (Duy Tan University, Vietnam)
Copyright: 2026
Pages: 34
Source title:
Legal Frameworks of Human Resource Management Reform
Source Author(s)/Editor(s): Perfecto Gatbonton Aquino, Jr. (Duy Tan University, Vietnam), Mercia Selva Malar Justin (Christian Management Institute, India)and Revenio Cabanilla Jalagat, Jr. (Al Zahra College for Women, Oman)
DOI: 10.4018/979-8-3693-5390-5.ch004
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Abstract
Artificial Intelligence (AI) is rapidly transforming Human Resource Management (HRM), offering enhanced efficiencies and innovative approaches in recruitment, performance management, and various HR functions. This chapter explores the integration of AI in HRM, examining the potential benefits, legal challenges, and ethical considerations associated with its use. Key opportunities include improved recruitment processes, data-driven performance evaluations, and personalized employee experiences. However, challenges such as compliance with data protection laws, addressing algorithmic bias, and maintaining transparency are critical. The chapter provides a comprehensive overview of best practices for legal compliance and risk mitigation, and discusses future directions for AI in HRM, including advancements in technology, evolving regulations, and ethical frameworks. Organizations must navigate these complexities to harness AI's potential while ensuring responsible and equitable use.
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