In the contemporary business landscape, artificial intelligence (AI) has emerged as a transformative force across multiple industries, with India positioning itself as a significant growth center for global technology firms, as evidenced in the World Bank's 2022 "Navigating the Storm" report. Many organizations strive to maintain competitive advantage and operational efficiency; AI-driven solutions have become increasingly essential components of modern HRM practices. The implementation of AI technologies in HRM processes offers considerable benefits, including cost reduction, time optimization, and enhanced strategic resource allocation. The application of AI in recruitment, on boarding, and performance management, which substantially reduces administrative burden for HR departments. This study examines the pivotal role of AI integration within human resource management (HRM) functions, analyzing both its strategic advantages and inherent challenges. Organizations face significant challenges including high implementation and maintenance costs, data privacy concerns, and cyber security vulnerabilities. While existing research has extensively explored AI applications in recruitment and selection processes, notable research gaps remain in other critical HRM domains including performance management, career development, training initiatives, and employee retention strategies. This study investigates the multifaceted implications of AI integration across HRM functions. AI, defined as a computer science field that leverages databases for accelerated problem-solving and decision-making, represents a genesis technology experiencing multiple developmental cycles. As an umbrella term encompassing machine learning, deep learning, and natural language processing, AI offers significant potential for automating routine tasks, thereby reducing costs, conserving time, and minimizing human error. This research contributes to the understanding of how AI technologies can be strategically deployed to enhance HRM effectiveness while addressing implementation challenges.