International Journal of Business Management and Economic Review Vol. 8, No. 01; 2025 ISSN: 2581-4664 http://ijbmer.org/ Page 98 EXPLORING THE ROLE OF ARTIFICIAL INTELLIGENCE IN TRANSFORMING HR PRACTICES Md. Masudul Haque Bhuiyan 1 , Kripa Nath Dey 2 , Palash Saha 3 , Pankaj Kumar Sarker 4 , Md. Halimuzzaman 5 , Md. Tanjil Biswas 6 1 Ministry of Social Welfare, Bangladesh Secretariat, Dhaka, Bangladesh. 2 Anti Money Laundering Division, BRAC Bank PLC, Dhaka, Bangladesh. 3 Division of Operation, The Premier Bank PLC, Mymensingh, Bangladesh. 4 Institute of Information Technology, Jahangirnagar University, Dhaka, Bangladesh. 5 School of Business, Galgotias University, Delhi, India. 6 Department of Corporate Taxation and Compliance, MGH Group, Dhaka, Bangladesh. http://doi.org/10.35409/IJBMER.2025.3646 ABSTRACT This study explores the role of Artificial Intelligence (AI) in transforming Human Resource (HR) practices, focusing on its impact on recruitment, employee engagement, performance management, and overall HR efficiency. Through a survey of 300 HR professionals, managers, and employees, the research evaluates the benefits and challenges of AI adoption in HR functions. The findings reveal that AI enhances efficiency, reduces biases in recruitment and performance evaluations, and improves employee satisfaction through personalized experiences. However, challenges such as high implementation costs, concerns about algorithmic bias, data privacy issues, and resistance to change were identified as barriers to successful AI adoption. The study concludes that while AI offers significant advantages for HR practices, organizations must address these challenges through training, transparency, and careful implementation to fully leverage AI's potential. Keywords: Artificial Intelligence, HR Practices, Recruitment, Employee Engagement, Performance Management, HR Efficiency, Algorithmic Bias, Data Privacy, AI Adoption, Human Resources. 1. INTRODUCTION The rapid advancement of technology has significantly reshaped various aspects of organizational operations, with Human Resources (HR) being no exception. Among these technological breakthroughs, Artificial Intelligence (AI) has emerged as a transformative force, redefining the way HR practices are executed in the modern workplace (Budhwar et al., 2023). From recruitment and employee engagement to performance management and workforce analytics, AI has the potential to enhance efficiency, accuracy, and personalization at every stage of the HR lifecycle (Zhang & Chen, 2024). Traditionally, HR processes relied heavily on manual tasks, subjective decision-making, and time-intensive procedures. However, the integration of AI is shifting this paradigm by automating repetitive tasks, offering data-driven insights, and enabling more strategic contributions from HR professionals (Nicolás-Agustín et al., 2022a). Tools such as AI-powered chatbots, predictive analytics, and machine learning algorithms are now being employed to streamline recruitment, foster diversity, and identify skill gaps with unprecedented precision (Budhwar et al., 2022). This article delves into the transformative role AI plays in modern HR