Impact of Artificial Intelligence on Organizational Processes: Strategic Implications and HRM Challenges in the Automobile Industry

Abstract: This comprehensive study investigates the integration of Artificial Intelligence (AI) into organizational processes, with a particular emphasis on Human Resource Management (HRM) challenges in the Indian automobile industry. AI technologies such as machine learning, automation, and predictive analytics are transforming traditional HR functions into strategic, data-driven mechanisms. The research employs a mixed-method approach, drawing primary data from six automobile companies (two each from domestic, commercial, and two-wheeler sectors), involving 120 HR professionals. The findings reveal the strategic benefits of AI including enhanced recruitment, targeted employee training, improved performance appraisal systems, and predictive retention strategies. The study also highlights key barriers such as ethical dilemmas, skill deficiencies, and infrastructural challenges. Empirical data are presented through structured tables, and sectoral comparisons reveal the maturity and readiness for AI adoption. The paper offers strategic recommendations for organizations to ethically and effectively integrate AI in HRM, contributing to both academic understanding and industry practice.