The Impact of Artificial Intelligence (AI) in Human Resource Management (HRM) in Organized Retail Apparel Sector

The convergence of Artificial Intelligence (AI) and Human Resource Management (HRM) has transformed the functioning of organizations, particularly in dynamic industries such as organized retail apparel. With the retailing industry becoming more competitive by the day, efficient handling of human resources becomes a crucial factor for organizational success. This study investigates the influence of AI-based technologies on HRM processes in the organized retail apparel industry in India. It seeks to evaluate the ways in which AI technologies are revolutionizing conventional HR practices like recruitment, onboarding, performance appraisal, training, employee engagement, and workforce analytics. The research follows a descriptive research design and employs primary data gathered through structured questionnaires filled by HR professionals, managers, and employees employed in top retail apparel brands. Secondary data has also been considered to know the trends and adoption of AI in retail HRM. The reports identify that AI applications like chatbots, automated resume filtering, predictive analytics for employee attrition, and customized learning modules are highly enhancing operational efficiency, decision-making, and employee experience. In recruitment, AI allows quicker and unbiased candidate shortlisting, while in performance management, it supports continuous feedback and data-driven assessments. Yet, the study also cites some major challenges posed by AI implementation, such as heavy upfront investments, change resistance, and shortage of technical capabilities among HR professionals, as well as ethical issues like data privacy and biased algorithms. In spite of such problems, most of the respondents hold the opinion that AI augments strategic HR capabilities and supports the objectives of digital transformation in retail companies. This research adds to the existing pool of knowledge on how AI and HRM converge, especially in the case of the structured retail apparel industry. It offers insights for policymakers, HR professionals, and business managers regarding utilizing AI not merely for administrative productivity but also for strategic talent management. The paper concludes with actionable suggestions to refine AI adoption and maximize its advantages while mitigating related risks. Additional research is proposed to study long-term effects and cross-functional incorporation of AI in all retail businesses.