Chapter 2. Ethical AI in HR: Navigating the Data-driven Frontier

The integration of artificial intelligence (AI) in human resources (HRs) presents significant opportunities while raising ethical dilemmas for an organisation. This chapter examines challenges in AI-enhanced HR concerning bias mitigation, data protection, transparency and governance through literature review, and real-life examples. Through a mixture of academic research and industry use cases including Amazon’s AI hiring tool, HireVue video interview analysis, IBM Watson Career Coach and Unilever recruitment powered through AI study analyses AI impact on HR functions and approaches to address ethical concerns. This research offers an advanced methodological framework for ethical implementation of AI in HR which is based upon eight foundational components including interdisciplinary collaboration, bias minimisation, transparency and explainability, ethics-based privacy policies governance, continuous monitoring improving engagement with stakeholders, and adaptive trust-enhancing policy. The model weights a set of quantitative suggestion, new metrics such as Team Integration Score (TIS) for assessing cross-functional relationship success. Synthesis of multiple academic sources and case studies mentioned the chapter plan on responsible AI implementation in HR through stakeholder engagement, transparency practices, and review mechanisms. This approach balances technological advancement and ethical considerations within AI-driven HR processes. The significance of this chapter is to bring together academic sources and experts from the industry to provide a complete guide of integrating global best practices for implementing ethical AI. The proposed framework serves as a valuable tool for HR AI practitioners and researchers offering a structured approach to the ethical AI deployment while remaining adaptable to emerging challenges and opportunities in this rapidly growing area.