The Potential of AI in HRM: Boosting Employee Wellbeing and Engagement in Today’s Hybrid Work Environments

Authors

DOI:

https://doi.org/10.70301/SBS.MONO.2025.1.2

Keywords:

Key words: Employee engagement; employee wellbeing; AI-based HRM tools; AI-based employee support; HR analytics.

Abstract

The Human Resource Management (HRM) is in need to effectively design workplace dynamics where employees feel they are well equipped to perform their daily tasks, whilst protecting their mental and physical wellbeing. This need is accentuated when employees are full or part-time remote. A sense of being connected with the organization, an organization which provides for useful resources to succeed at work may incentivize a desire to reciprocate the employer through higher engagement and better performance. The deployment of AI-powered HRM solutions has the potential to provide for a personalized employee experience that each remote worker can tailor to their daily needs. While working from home (WFH) offers benefits like increased autonomy and work-life balance, it also presents challenges such as work-life spillover and social isolation. This article posits that AI-assisted HRM solutions can significantly improve teleworkers’ engagement through increased wellbeing at work. Through the exploitation of AI, HRM practitioners can design and create a more supportive and personalized remote work environment. This article reviews AI in HRM, highlighting uses like personalized support, predictive analytics, automated tasks, enhanced learning, and real-time feedback. It suggests that combining AI with human efforts can improve employee satisfaction and organizational performance by creating a more inclusive, supportive, and engaging work environment. AI tools such as chatbots, virtual assistants, and predictive analytics can provide real-time support, personalized wellbeing programs, and data-driven insights. These can be brought to the front of the organization’s environment, fostering a more engaged and satisfied workforce. The article reviews AI in HRM, highlighting uses like personalized support, predictive analytics, automated tasks, enhanced learning, and real-time feedback. It suggests that combining AI with human efforts can improve employee satisfaction and organizational performance by creating a more inclusive, supportive, and engaging work environment. Key applications of AI in HRM include automated resume screening, performance evaluation, and employee engagement. Research on AI’s impact on employee engagement is limited, but existing studies highlight AI’s dual role in enhancing efficiency and reducing bias, while also raising concerns about job security, fairness, and privacy. The findings derived from this study suggest AI-assisted HRM solutions may offer significant opportunities to enhance employee engagement and wellbeing, especially for remote or hybrid workers. The overall success of such implementations will depend on surpassing AIs major threats, that is risk of bias, privacy concerns, potential inconsistent feedback, or an over reliance on technology, versus human-to-human interactions. AI-assisted HRM solutions thus must be carefully managed to maximize their benefits.

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Additional Files

Published

14.01.2026

Issue

Section

Book of Chapters 2026: Artificial Intelligence and Economic Disruptions: Business Transformation, Leadership, and Future Organizational Models

How to Cite

The Potential of AI in HRM: Boosting Employee Wellbeing and Engagement in Today’s Hybrid Work Environments. (2026). SBS Journal of Applied Business Research, 1, 30-45. https://doi.org/10.70301/SBS.MONO.2025.1.2

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