ARTIFICIAL INTELLIGENCE AND EMPLOYEE PERFORMANCE EVALUATION IN INDIAN ENTERPRISES: AN EMPIRICAL STUDY

Abstract

Artificial Intelligence (AI) in human resource management has driven the performance evaluation systems among the Indian companies to the nth degree given the great pace of its adoption. The given empirical research test refers to the outcomes of AI-performance appraisal systems on accuracy, efficiency, transparency, and employee satisfaction of the sampled companies in India. Primary data (managers and employees) were collected by means of structured questionnaires, and the evaluation of the data was carried out through the use of statistical analysis (descriptive analysis, correlation, and regression), to identify the relationship between the implementation of AI and the performance outcomes of employees. It can be concluded that AI-based assessment systems increase the objectivity, reduce the managerial bias, and provide the updated data on the performance, thus, enhancing the decision-making process and productivity after that. However, aspects that have been projected include data privacy, algorithm bias, and opposition of the employees. The study concludes that the application of AI in the area of performance evaluation can be greatly effective, but it needs to be ethical, transparent, and reasonably followed with training its employees. The research provides insightful data to the Indian companies who would be interested in adopting AI in the performance management systems in a sustainable way.