Blessing and Curse: Reviewing the Implications of Generative AI on Employee Relations in the Ready-Made Garment Sector

Generative artificial intelligence (GAI) is transforming Human Resource Management, particularly Employee Relations, by automating decision-making, enhancing personalization, and optimizing operational efficiency. This paper explores the implications of GAI adoption in the ready-made garments (RMG) sector, a labor-intensive industry in South and Southeast Asia. While GAI offers opportunities for productivity gains, safety improvements, and enhanced communication, its integration raises concerns about job displacement, skill gaps, and ethical dilemmas. Drawing on theoretical frameworks, such as the Technology Acceptance Model, the Task-Technology Fit model, and Self-Determination Theory, this study examines how GAI reshapes labor dynamics, organizational policies, and employee engagement. The findings suggest that successful GAI adoption requires a balanced approach, incorporating training initiatives, regulatory safeguards, and inclusive decision-making processes to mitigate risks and maximize benefits. The study highlights the need for a nuanced, context-specific analysis of GAI’s role in reshaping employee relations within the RMG sector.