Abstract
The transformative impact of artificial intelligence (AI) on employment dynamics and human resources management (HRM) practices is considered. The research identifies a dual impact while AI enhances efficiency and decision making, it also introduces ethical concerns, privacy risks and potential job displacement particularly low skilled labor. Through literature review, econometric models, the paper evaluates an influence on employment elasticity, wage differentials and productivity growth. AI intensifies demand for highly skilled professionals while promoting the decline of representative roles emphasizing the need for upskilling and digital literacy programs. The findings highlight growing income inequality and the need for balanced governance frameworks to mitigate algorithmic bias and ensure fair AI driven decision making. This study recommends inclusive educational policies, ethical regulatory standards and transparent corporate AI governance to ensure responsibility integration of AI in HRM. Emphasis is placed on hybrid models that combine AI efficiency with human oversight to preserve fairness and accountability