A study on the impact of artificial intelligence on time and cost efficiency in human resource management practices in Indian IT firms

Abstract

This study focuses on an exploration of the influence on time and cost effectiveness of Human Resource Management (HRM) in the Indian IT companies by elements of Artificial Intelligence (AI), which includes accuracy, automation, real-time responsiveness, computing power, and customization. The lack of empirical research on individual and collective impacts of AI characteristics on operational efficiency remains a fact, although the HR environment is quickly changing under the conditions of the digital revolution. This study examines 300 responses of the tier-1 IT companies HR professionals who responded to the structured quantitative method used in this study. The determination of the predictive relevance is performed with the help of multivariate regression and structural equation modeling (SEM). The results indicate that accuracy (r == 0.418, p << 0.001) and automation (r == 0.208, p << 0.001) are the most considerable factorstors that affect the rise in HR efficiency. The second type of systemis real-time. Conversely, small effects in statistical terms were reported on both aspects of processing capacity and customization, and this implied the functional aspects of AI are of a greater priority than those drilling ancillary enhancements. The findings of the model fit indices (RMSEA = 0.023, CFI = 0.987) testify to a good and reliable model. These findings demonstrate the necessity of specific investments in high-impact elements and can serve as beneficial pieces of information to companies that aim at expanding the usage of AI. This publication forms the foundation of the development of cost-efficient AI-involved HR strategies and contributes to the growing bulk of research on HR based on AI scenery, particularly in developing nations.