This research paper delves into the tactical integration of Artificial Intelligence (AI) within the framework of Human Resource Management (HRM), with a specific focus on a case study that revolves around Microsoft Corporation. Microsoft is, without a doubt, a premier global player when it comes to digital transformation and innovation, thus, it serves as a fascinating point of reference for understanding how various AI technologies can be effectively embedded into core HR operations and functions. This investigation looks into the various ways Microsoft uses AI including the areas of recruitment, talent management and retention, employee engagement, and performance evaluation. Noteworthy and pertinent tools that Microsoft uses include LinkedIn Talent Insights, which gives predictive analytics, thereby enhancing the quality of hires, Microsoft Viva, which empowers employees, as well as enhancing and enriching employee engagement and collaboration, and Dynamics 365, another platform utilized for performance tracking and HR analytics among others. The results indicate that the use and application of AI at Microsoft have brought about several positive outcomes, which have been positively received by stakeholders. These outcomes include improved decision-making accuracy, lessening bias in recruitment as well as hiring processes, better alignments in the development strategies of employees’ skills and competences, and the strewn and establishment of possibilities for growth within the premise of continual improvement and development. Nevertheless, the research points to the challenges that need to be well-organized and handled effectively as well as ethically, among which are data ethics, algorithmic transparency, and the importance of keeping and maintaining a people-in-the-loop paradigm within the automated processes. The case of Microsoft serves as the use and application of Artificial Intelligence (AI) systems to exemplify how mindful, ethically sound, and widely encompassing AI-based HRM practices could use software to reshape and optimize HRM in major multinational corporations. This research study calls attention to the importance of technological readiness, ethical frameworks, and proactive involvement of employees, which are critical in ensuring that the integration of AI into HRM is successful, effective, and just while keeping in mind and upholding the people’s interest.
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