Abstract
Artificial Intelligence (AI) has shifted human resource management from a transactional support role to a strategic
driver of competitive advantage. This study evaluates the impact of AI-powered recruitment and selection on
broader organizational effectiveness using secondary data sourced from recent literature, industry reports, and
academic journals. The research reveals that AI significantly enhances organizational performance by shortening
hiring cycles, improving the quality of hire through predictive talent matching, and reducing operational costs.
However, systemic challenges—most notably algorithmic bias, legal/ethical risks, and a lack of qualitative human
insight—can compromise these gains if left unchecked. The study concludes that optimal organizational
effectiveness is achieved not by replacing human intelligence, but by adopting a hybrid "collaborative
intelligence" framework.
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