LEVERAGING ARTIFICIAL INTELLIGENCE FOR STRATEGIC HRM IN PAKISTAN A MULTIDIMENSIONAL ANALYSIS OF PERFORMANCE, WELL-BEING, AND CHALLENGES

Abstract

Artificial intelligence is rapidly reshaping human resource management by changing how organizations recruit employees, analyze workforce data, support employee well-being, improve performance, and make strategic decisions. In Pakistan, this transformation is especially important because organizations continue to face persistent challenges related to skill shortages, weak governance structures, uneven digital readiness, high implementation costs, and ethical uncertainty. This literature review examines the role of artificial intelligence in strategic human resource management in Pakistan, with particular attention to performance, employee well-being, leadership, HR analytics, recruitment, workforce development, and institutional challenges. Drawing on recent studies from Pakistan’s corporate, education, manufacturing, public-sector, and technology-related contexts, the review shows that AI can strengthen evidence-based decision-making, improve administrative efficiency, support competency development, and enhance organizational performance. However, the findings also indicate that AI adoption cannot produce sustainable HR outcomes without human-centered leadership, ethical governance, employee trust, digital literacy, and continuous upskilling. The review further highlights key risks, including algorithmic bias, technostress, employee surveillance, lack of regulatory clarity, and unequal access to AI capabilities across sectors. Overall, the paper argues that AI should not be treated as a replacement for human-centered HRM. Instead, it should be positioned as a strategic support system that strengthens human capability, improves workforce planning, and enables responsible organizational transformation in Pakistan.