A study on artificial intelligence integration in Indian HRM: Evaluating task efficiency transformation in SMEs

Artificial intelligence (AI) is transforming human resource management (HRM) by enhancing strategic workforce management and automating most of the repetitive tasks. The present empirical study focuses on the impacts of including AI in the HR operations in terms of productivity in ten SMEs in India that have over 100 employees. To gain the value of productivity and to validate the strategic impact of AI, the study analyzes operational time: 16 core HR segments before and after the digitalization. The statistics revealed by a non-parametric methodology (Wilcoxon Signed-Rank Test) showed that there was a great reduction in the time taken to execute a task since the average gain was more than 6 hours per month per task. The study adopts rank-based correlations, descriptive analysis, and the determination of the effect size to retrieve the high-resolution insights. Its advantages, limitations, and potential for adoption are put into perspective in terms of a SWOT analysis of the sector. Findings show that the most efficiency gains can be achieved through data-intensive and administrative forms of work, which once more proves the effectiveness of AI in the work that supports decisions and is executed recurrently. As the results of the study indicate, the application of AI also promotes business agility and readiness of compliance along with the productivity of HR. Some of the recommendations include phased plans of implementation, ethical safeguards, and reskilling programs. The current research adds a new perspective to the growing body of literature that assesses the revolutionary potential of AI in HRM in a developing market environment and also imparts useful guidelines to SMEs and the government.