ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT: OPPORTUNITIES, CHALLENGES, AND A HUMAN-CENTERED FRAMEWORK FOR EMPLOYEE DEVELOPMENT IN INDONESIA

Djoko Pitoyo; Suwoko Tya Wicaksono

doi:10.61397/mfc.v4i1.441

Authors

Djoko Pitoyo Universitas Sangga Buana YPKP
Suwoko Tya Wicaksono Universitas Sangga Buana YPKP https://orcid.org/0000-0003-4267-9114

DOI:

https://doi.org/10.61397/mfc.v4i1.441

Keywords:

artificial intelligence, human resource management, employee development, algorithmic HRM, people analytics, responsible AI, Indonesia

Abstract

Artificial intelligence (AI) is reshaping human resource management (HRM) by extending the use of analytics, automation, algorithmic decision support, and personalized employee services across the employment lifecycle. This article critically examines the opportunities and challenges of AI-enabled HRM for employee development, with particular attention to the Indonesian organizational context. The study uses a critical integrative literature review of 30 peer-reviewed journal articles covering AI-assisted HRM, algorithmic HRM, people analytics, recruitment, employee experience, learning and development, responsible AI, and human–AI collaboration. The synthesis shows that AI can strengthen recruitment efficiency, workforce analytics, personalized learning, talent development, employee experience, and evidence-informed decision making. At the same time, the literature consistently identifies risks involving algorithmic bias, opacity, privacy, accountability, perceived injustice, employee resistance, and organizational capability gaps. The review further indicates that AI value is not generated by technology alone; it depends on complementary human capabilities, organizational readiness, governance, and meaningful employee participation. Based on this synthesis, the article proposes a human-centered AI-HRM framework consisting of five mutually reinforcing dimensions: strategic alignment, data and AI capability, employee development, responsible governance, and human oversight and collaboration. For Indonesia, the framework highlights the need to move beyond technology adoption toward context-sensitive implementation that protects employee rights while developing digital and AI-related competencies. The article contributes by integrating employee development with responsible AI governance and by translating fragmented international evidence into a context-sensitive framework for Indonesian HRM.

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