Human Resource Revolution 5.0: Leveraging Artificial Intelligence for Efficiency and Productivity in HR Management – A Literature Review

Abstract

This literature review examines the transformative influence of Artificial Intelligence (AI) in reshaping Human Resource Management (HRM) within the HR 5.0 era. It explores how AI-driven technologies are integrated across key HR functions such as recruitment, employee development, performance management, retention strategies, and well-being enhancement. The review highlights that AI applications streamline administrative tasks, enable data-driven decision-making, and enhance precision in matching candidates with job requirements. Furthermore, AI contributes to predictive analytics for employee performance and turnover, allowing HR professionals to act proactively. However, the adoption of AI in HRM also presents several challenges. Issues such as algorithmic bias, ethical dilemmas, data security, and the potential displacement of human roles raise significant concerns. In addition, limited digital literacy among HR practitioners can hinder effective implementation. To address these challenges, organizations are encouraged to foster human–AI collaboration, implement transparent and explainable AI systems, and establish robust ethical and governance frameworks. Balancing technological efficiency with human-centric values remains essential to preserving trust and fairness in the workplace. In conclusion, while AI offers substantial opportunities to revolutionize HRM practices in the HR 5.0 landscape, its success depends on responsible adoption. Ethical, transparent, and context-sensitive implementation will determine whether AI serves as a strategic enabler that empowers both organizations and employees in achieving sustainable performance and well-being.