The Impact of Generative AI on HR Functions and Workforce Skills

Abstract:-Generative AI (GenAI) is rapidly transforming human resource (HR) functions by enabling new forms of automation and augmentation across the employee lifecycle. This paper provides an analytical, evidence-based review of GenAI’s impact on core HR processes—recruitment, onboarding, performance management, learning and development (L&D), employee relations, payroll/benefits, and compliance—while mapping the associated shifts in workforce skills. Using a structured search strategy focused on the last five years of peer-reviewed literature, official regulatory guidance, and primary vendor/employer documentation, we synthesize findings from global reports and real-world deployments. Evidence suggests that GenAI delivers highest immediate value in high-volume, text-intensive HR work (drafting job descriptions, summarizing policies, answering employee queries, generating learning content), but introduces significant risks related to bias, privacy, security, and legal compliance, particularly where AI materially influences employment decisions. Case analyses across retail, technology, banking, healthcare, and logistics indicate that measurable outcomes are achievable through retrieval-augmented generation (RAG) and workflow integration, provided strong governance and human oversight exist. We conclude with a risk-based adoption framework and practical recommendations for policy, training, and AI governance to align productivity gains with fairness, trust, and regulatory readiness.

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