AI in HR: Impact of Artificial Intelligence on Transforming Human Resources

Аннотация

The article examines the impact of artificial ACCEPTED 24 June 2025 PUBLISHED 11 July 2025 intelligence on the transformation of human resource VOLUME Vol.07 Issue 07 2025 management functions, analyzing the practices of embedding AI modules in the Oracle Fusion Cloud HCM CITATION Sambit Panigrahi. (2025). AI in HR: Impact of Artificial Intelligence on platform and assessing their economic and strategic Transforming Human Resources. The American Journal of Management effects. Against the backdrop of rapid growth in AI and Economics Innovations, 7(07), 51–58. https://doi.org/10.37547/tajmei/Volume07Issue07-06 penetration into business processes and active COPYRIGHT participation of HR units in the selection of AI solutions, © 2025 Original content from this work may be used under the terms the relevance of this study is determined by the need to of the creative commons attributes 4.0 License. optimize recruitment, retention and development of personnel, as well as to free up to 12 hours of working time per week for strategic tasks. The novelty of the work lies in its comprehensive approach, combining an overview of industry surveys (McKinsey, Engagedly, SHRM), analysis of Oracle technical documentation (Dynamic Skills, Skills Nexus, Activity Centers, Fusion HCM Analytics), and corporate case studies (Carv, Candidate, Forrester-TEI, Adecco). Data have been synthesized concerning the level of HR-task automation, the architecture of Oracle’s unified object model, and the contributions of pre-trained AI agents in recruiting processes, employee performance appraisal, and benefits management. The main findings demonstrate that AI implementation in HR ensures a significant reduction in routine operations (81% of respondents consider automation a priority), improvement of employee experience (73%), decrease in time-to-hire (by up to 70% through automated interview scheduling) and enhanced accuracy of candidate selection (a 14% increase in diversified responses). Using the Dynamic Skills module creates a “live” competency inventory, Activity Centers prompt the “next best action,” and the Digital Assistant and other chatbots return up to one hour per day to employees. Additionally, the author has The American Journal of Management and Economics Innovations 51 https://www.theamericanjournals.com/index.php/tajmei The American Journal of Management and Economics Innovations proposed the Set-up Extractor Tool for automating the services and an ecosystem of AI agents, allow migration of Oracle HCM Cloud configurations, organizations to adopt data- and human-centric eliminating the risks of manual copying and version practices without heavy code customization, effectively conflicts. The article will be helpful to HR service leaders, transforming HR into a data-driven strategic function. HR-technology implementation specialists, and digital MATERIALS AND METHODOLOGY transformation consultants. A comprehensive approach was applied in this study, Keywords: artificial intelligence, human resource encompassing analysis of industry surveys, corporate management, HR automation, Oracle Fusion Cloud reports, and official technical documents. First, the scale HCM, Dynamic Skills, Activity Centers, digital assistant, and priorities of AI implementation in HR were recruiting, performance management. evaluated based on major reviews: McKinsey reports [1, INTRODUCTION 3]; Engagedly documents algorithm usage [2]; and HRD America forecasts [4]. Artificial intelligence has already moved beyond a mere technological trend: over the past eighteen months, Second, the working methods of key AI modules in more than three-quarters of companies have Oracle Fusion Cloud HCM were investigated via official implemented it in at least one business function [1], and guides: Dynamic Skills and the Skills Nexus core are algorithms are used in HR processes by 45% of described in Oracle 24D documentation [7], role-specific organizations, making AI a systemic factor in human Activity Centers are detailed in Lifewire materials [8], resource management [2]. For HR leaders, this is not and the mechanisms of the unified object model and merely another upgrade. In 92% of companies, HR Fusion HCM Analytics are reviewed in the platform participates in the selection and launch of AI solutions, overview and Oracle Analytics help [9, 10]. because the quality of recruiting, retention, and Third, for recruitment and self-service scenarios, reports development of personnel is at stake [3]. The on Candidate on automated interview scheduling [14], expectation of saving up to 12 hours of working time per and Oracle documentation on Time to Hire and week within the next five years indicates that the issue Matching Features [15, 16] were studied. The economic is shifting from the expert domain to the economic effect of the Digital Assistant was analyzed through the one—freed resources enable a focus on strategic tasks Forrester-TEI report and an Adecco survey [17, 18]. The and