The Role of AI in Shaping HRM Skills and Strategies in Private Banks: A Study on Manager-Employee Dynamics in Chennai City

Background: In the private banking industry, including artificial intelligence (AI) into human resource management (HRM) has completely transformed workforce management. Fast acceptance of digital technologies has driven financial institutions to use artificial intelligence (AI) to improve recruitment, employee training, performance review, and workplace efficiency. With an eye towards the changing dynamics between managers and employees, this paper attempts to investigate how artificial intelligence has impacted human resource management skills and strategies in private banks housed inside Chennai City. Objectives: The study identifies the main barriers related to the acceptance of artificial intelligence. Among these challenges are ethical concerns about data privacy, technological knowledge gaps among HR managers, and change resistance. Data Collection: Data were collected using a mixed-methods approach from 250 employees hired for ten different private banks in Chennai and 120 managers. These banks call Chennai their hometown. We obtained both quantitative and qualitative knowledge of the impact artificial intelligence has in redefining HR practices by means of a survey and semi-structured interviews. Findings: According to the results, many managers-more especially, those in the field of predictive analytics for employee performance-acknowledge artificial intelligence as a required tool for decision-making. Seventy-five percent of employees have reported an increase in their degree of satisfaction with their company thanks to customised training programs driven by artificial intelligence and better strategies for preserving a good work-life balance. Still, 68% of respondents voiced concerns regarding the possibility that artificial intelligence would replace human contacts in HRM systems.