Ethical Challenges in AI-Driven HR: Balancing Innovation with Employee Privacy and Fairness

Abstract

Artificial Intelligence (AI) is changing Human Resource Management (HRM) and making all processes, such as recruitment to performance appraisals, much easier. However, its increasing use also has ethical issues especially in relation to privacy, fairness and openness. This paper discusses those issues, especially its perception by employees in HR. The motivation is to understand how a company could strike a balance between leveraging AI effectively and how they can treat employees in a just manner and respect their privacy. We have to conclude our research with this fact: ethical practices in AI are not pleasant, but a necessity to build trust and leave a long-term victory in the current work environments..