Artificial Intelligence and Human Resource Management: Rethinking Competencies for a Human-Centered Digital Transformation - An Exploratory Study of HR Practitioners’ Perspectives

AI is transforming organizational processes, decision-making and the nature of work. In HRM, AI supports recruitment, performance management, training and workforce analytics, while reshaping jobs and competencies. This thesis examines the relationship between AI-driven transformation, HRM and competency development from a human-centred perspective. It explores how HR practitioners perceive process redesign, how organizations address competency gaps, and which competencies are essential for managing AI-driven change. The study combines a literature review with a qualitative investigation based on five semi-structured interviews with HR and training professionals from the hospitality, retail and manufacturing sectors. Data were analysed through reflexive thematic analysis using a hybrid deductive-inductive approach. Findings suggest that AI primarily automates repetitive activities, increasing the importance of strategic, relational and interpretive work. Organizations generally favour internal reskilling and continuous learning, although specialized technical profiles may be recruited externally. AI adoption also varies across organizational functions, making change agents important for implementation. The findings indicate that AI literacy and critical interaction with digital systems must be combined with emotional intelligence, communication, collaboration, adaptability, curiosity, creativity and ethical judgement. The thesis argues that AI-driven transformation is not simple technological substitution, but task recomposition and organizational change. Its success depends on HRM’s ability to integrate digital and human competencies and promote responsible AI adoption.