Article 8 - Ethics in Artificial Intelligence in Human Resource Management: Balancing Innovation with Human Dignity
Artificial Intelligence (AI) is increasingly used within Human Resource Management functions, reshaping the ways in which organisations attract, select, and look after people. Where smart technologies are able to accelerate work processes and enhance decision accuracy, the application itself is also raising many key concerns regarding fairness, privacy, and accountability. According to Bankins (2021), AI should be channelled through strong moral values to prevent bias or unfair treatment in key areas such as recruitment and performance evaluation. According, Deloitte (2025) discusses how many leading organisations place an increasing amount of focus on the ethics of AI to ensure that innovation remains people-centred and supports a sustainable and inclusive workforce.
Importance of Ethics in AI-HRM and Balancing with Human Dignity
Increasing involvement of AI in recruitment, performance evaluation, and workforce analytics, ethics has come to act like a compass to keep innovation in tune with human values. The real importance of ethical AI in HRM is in making technology enhance, not replace, human judgment and empathy. When AI tools are used responsibly, they can reduce bias and lead to fairer hiring decisions. On the other hand, biased data can cause AI to repeat and reinforce existing social inequalities. For instance, automated hiring systems have sometimes shown preference for some groups due to historical data, creating unequal opportunities. Good ethics in AI for HR make processes more open and help employees trust that things are handled fairly. (Rodgers et al., 2023). By promoting fairness and respect, ethical decision-making in AI safeguards employees’ dignity and ensures technology continues to serve human needs (Bankins et al., 2022).
Global Context
Across the world, the ethics of using Artificial Intelligence (AI) in Human Resource Management (HRM) have gained strong attention. The European Union’s AI Act (2021) recognises HR uses such as recruitment and performance evaluation as “high-risk” areas that need human supervision. Several multinational corporations responded with their own ethical AI guidelines. For example, IBM Responsible AI programme works to make AI fair and transparent (IBM, 2025). Also, Google use AI Principles that focus on accountability and using AI for social good (Google, 2025). LinkedIn also uses human checks to make sure its hiring tools are used responsibly (LinkedIn, 2025). According to Deloitte (2024) reports that many HR leaders now see ethical AI as important for building trust and encouraging responsible innovation at work.
Sri Lankan Context
In Sri Lanka, companies are increasingly using AI and analytics in HR practice. This shows a move toward digital human resource management. For example, the Information and Communication Technology Agency (ICTA) has led national efforts to create AI policies and prepare the workforce, with programmes and committees that focus on responsible AI (ICTA, 2025). The John Keells Group, through its analytics division OCTAVE, uses AI and machine learning in HR and talent management, showing how employee data and AI insights are now part of the company’s people strategy (John Keells, 2024). Also, Dialog Axiata PLC has introduced AI systems, including a trilingual AI assistant, to improve recruitment, training, and HR operations(Dialog, 2025). These examples show that Sri Lankan organisations are advancing on technology adoption, still there is a need for clear ethical frameworks to guide responsible and fair use.
Challenges
Use of Ethical AI in HRM comes with several challenges (Talent Management Institute, 2025):
- Bias and Discrimination - AI systems can repeat biases in their data. This can lead to unfair results in hiring, promotion, and evaluation.
- Transparency and Explainability - When AI decisions are unclear, employees may lose trust in the system.
- Privacy and Data Security - AI uses sensitive employee data, which can create privacy concerns.
- Job Security and Automation - AI automation can replace some jobs, making employees feel worried about job security.
- Dependence on AI - Depending too much on AI can reduce human judgment in important HR decisions.
Conclusion
Ethics in AI-driven human resource management maintains human dignity in the context of digital change. However, AI makes HR practices more efficient and data-driven, AI should never replace empathy, fairness, or moral accountability. This view connects with Socio-Technical Systems Theory, which explains that technological systems must always work in balance with human and social needs rather than overriding them (Trist & Bamforth, 1951). Also, Organisational Justice Theory highlights that AI-supported decisions must remain fair, transparent, and respectful to protect employee dignity (Greenberg, 1987). Internationally and in Sri Lanka, embedding these ethical principles and theories into AI design and decision-making processes, organisations can build a work culture where innovation and humanity work together in creating a future where technology empowers people, not defines them.
I appreciate your well written and insightful blog article. I truly appreciate how you show ,how crucial it is to maintain human dignity at the core of AI driven HR procedures. In today's workplace, the way you struck a balance between ethics and innovation seems both realistic and extremely pertinent. Your examples, which range from multinational corporations to Sri Lankan organizations, truly make the conversation come to life and demonstrate how widespread this problem has grown. I particularly concur with your assertion that AI ought to supplement human judgment rather than take its place. It serves as a wonderful reminder that even though technology can increase our intelligence, justice and empathy must always lead the way.
ReplyDeleteDanushka, thank you for your valuable comment. I am glad you have identified why protecting human dignity must remain central when using AI in HR practices. Most of the organisations move toward digital HR systems, and keeping a clear balance between innovation and ethical responsibility becomes even more important. Your point about AI supporting, not replacing, human judgment is especially relevant because fairness, empathy, and contextual understanding cannot be fully automated by AI. The examples from global and Sri Lankan organisations were included to show that this is a shared challenge across contexts. Your feedback reinforces the need for responsible AI that strengthens, rather than weakens, human values.
DeleteThis post provides a concise and insightful discussion on the ethical use of AI in HRM. It effectively highlights how balancing technological innovation with fairness and human dignity is essential for responsible HR practices. The inclusion of both global and Sri Lankan perspectives strengthens the argument, emphasizing that ethical AI is vital to ensure transparency, trust, and human-centred decision-making.
ReplyDeleteCharith, thank you very much for your thoughtful feedback. Your comment clarifies that you got the idea of how important it is to balance innovation with fairness and human dignity when using AI in HRM. As AI becomes more embedded in recruitment, performance evaluation, and workforce planning, we have a responsibility to ensure these tools enhance rather than diminish human dignity. Explaining both global and Sri Lankan examples shows that this is not only a technical matter but a shared human responsibility. Your comment confirms the idea that AI should support and not replace human judgment, ensuring decisions remain fair, respectful, and people-centred.
DeleteViraj, your article gives a clear and timely overview on making changes in HRM by the effect of AI and the essentiality of protecting human dignity. Also, well described on it's remarkable role in connecting global developments like EU AI act and responsible AI efforts by companies concerned such as IBM and google, also the Sri Lankan context. Most important thing is this has clearly discussed on the challenges raised at the utility. This highlights cruciality of responsible AI in order to create trustworthy and human centered organizations.
ReplyDeleteSaliya, thank you for your thoughtful feedback. I appreciate your recognition of how the article connects with global developments such as the European Union’s AI Act and responsible AI practices by organisations like IBM and Google. Also, the example of Sri Lanka, such as John Keells Group and Dialog shows that Sri Lankan organisations are advancing on technology adoption. My aim was to show that while AI can support efficiency and better decision-making, it must always protect human dignity and fairness. Your point about the challenges in real-world application is correct. It is important to remind us that responsible AI is not only a policy goal but a practical need for building trustworthy, transparent, and genuinely human-centred workplaces.
DeleteGreat analysis, Viraj! Your insights on algorithmic fairness and accountability are very timely. They also complement the ideas in my article about AI-powered talent and strategic upskilling, highlighting the need for ethical AI and capability building to advance in tandem. Here is the link to my article: [https://dilrukshidehideniya.blogspot.com/2025/10/ai-powered-talent-strategic-upskilling.html].
ReplyDeleteDilrukshi, thank you for your thoughtful comment and for sharing your article link. Thank you for identifying that algorithmic fairness and accountability are essential. Your focus on building ethical AI and strategic upskilling fits well with my argument about balancing innovation with human dignity. For example, your article highlights about training employees to understand AI-driven decisions to have transparency and trust. This kind of capability makes AI use more responsible and supports a human-centred workplace. I appreciate how our ideas complement each other and hope both discussions encourage ethical and sustainable HR practices.
DeleteSuch an insightful article! I really liked how you balanced the promise of AI with the need to protect fairness and human dignity especially the way you explained global standards like the EU AI Act alongside what’s happening here in Sri Lanka. Your point about AI supporting, not replacing, human judgment really stood out. However in Sri Lanka and Globally Do you think most organisations are ready to build the ethical frameworks needed for this kind of responsible AI in HR? Becasue I feel that they are still not ready
ReplyDeleteShashi, thank you for your thoughtful comment and meaningful question. I agree that many organisations, both in Sri Lanka and globally, are still not fully ready to build strong ethical AI frameworks in HRM. You are right that global standards like the EU AI Act provide important direction. However, many organisations still lack the policies, skills, and governance structures needed to ensure fairness and human-centred decision-making. However, organisations can become ready over time through awareness, training, and careful implementation. If you have noticed that organisations like IBM, LinkedIn and Google that invest in training, transparent processes, and responsible oversight will be better positioned to use AI ethically while still protecting human dignity in HR practices.
DeleteThis article skillfully balances global insights with the Sri lanka context while offering a concise and well-organized discussion of the ethical application of AI in HRM. It highlights how AI can enhance fairness and efficiency while also emphasizing the risks related to bias, privacy, and transparency. The inclusion of modern literature and genuine organizational examples enriches the analysis and exhibits excellent academic basis. Overall, it is a serious and timely essay that convincingly explains why ethical values are vital to defend human dignity as AI becomes more incorporated into HR procedures.
ReplyDeleteIndika, thank you for the feedback. I am glad you found this discussion balanced and relevant to both global and Sri Lankan contexts. You are absolutely correct, AI is making HR practices more efficient and data-driven, but risks related to bias, privacy, and transparency are still there, so it must operate with strong ethical practices to protect dignity and trust. As you mentioned, insights from examples and real organisational practices are helpful to understand the Importance of Ethics in AI-HRM and challenges. They show that ethical AI is not only necessary but fully achievable with proper leadership and guidance.
DeleteThis is an excellent article. You have discussed how AI is transforming HRM while stressing the essential role of ethics in protecting fairness, privacy, and human dignity. And also, you have discussed how importance of ethics in AI-HRM and balancing with human dignity. Furthermore, you have discussed about global standards and Sri Lankan examples, it shows that responsible AI is not just a technological requirement but a strategic necessity for building trust and inclusive workplaces.
ReplyDeleteDilrangi, thank you very much for your feedback. I am glad that you found the discussion meaningful. Especially the link between AI-driven HR practices and at the same time the need to protect fairness, privacy, and human dignity. Your point about responsible AI becoming a strategic necessity is correct. I appreciate that you have identified that organisations must ensure that technology supports but does not replace human judgment and empathy. Highlighting both global standards and Sri Lankan practices was important to show that ethical AI is a responsibility across contexts. As AI becomes more integrated into HR procedures, maintaining strong ethical values will be essential for building trust, transparency, and truly inclusive workplaces.
DeleteThis is a thoughtful and highly relevant article that effectively highlights the critical balance between innovation and human dignity in AI-driven HR practices. I appreciate how you connected global frameworks, like the EU AI Act and corporate initiatives from IBM and Google, to the Sri Lankan context with examples from John Keells Group, Dialog Axiata, and ICTA. The discussion on challenges—including bias, transparency, privacy, and over-reliance on AI—adds depth and realism, emphasizing the need for ethical oversight alongside technological adoption. Overall, this article clearly demonstrates that while AI can enhance HR efficiency, embedding ethical principles and preserving human judgment and empathy is essential to maintain trust, fairness, and sustainable organizational culture.
ReplyDeleteNadeesha, I appreciate the feedback. I am glad that the discussion on balancing innovation with human dignity was clearly & this is one of the most important concerns in AI-driven HRM. Your recognition of the examples between global frameworks such as the EU AI Act and corporate initiatives from IBM and Google, and the Sri Lankan context, is greatly appreciated. I agree that challenges like bias, transparency, and privacy require continuous attention. To overcome these challenges, HR professionals should combine ethical awareness with human judgment to ensure AI is used fairly and responsibly. As you noted, AI can support HR work, but human judgment, empathy, and fairness must remain at the centre of all decisions.
DeleteThanks for tackling the complex topic of ethics in AI. I particularly appreciate the emphasis on the need for diverse perspectives in AI development. it's something I often think about, especially concerning how different cultural values might shape ethical AI. As someone who interacts with AI daily, I've sometimes wondered how we ensure accountability when AI makes a questionable decision.
ReplyDeleteChanika, thank you for your comment and for the important concern. I completely agree that including different perspectives, development in AI is important. cultural values strongly influence how fairness, dignity, and responsibility are understood in different societies. This is especially relevant in HRM, where decisions directly affect people’s lives and careers.
DeleteRegarding accountability, one key principle to follow is to make sure that AI systems never make final decisions without human review. Clear audit trails, transparent decision-making processes, and defined roles for human oversight help organisations take responsibility when AI outcomes seem questionable. This balance is necessary to build trust and protect human dignity in AI-driven HR practices.
Your discussion provides a well rounded, insightful analysis of the ethical considerations surrounding AI in Human Resource Management. It clearly demonstrates how technological advancement must be balanced with human dignity, fairness, and accountability an essential perspective in today’s digital HR landscape.
ReplyDeleteStrengths of your write-up:
• Clear rationale for ethical AI: You effectively explain why ethics must guide AI driven HR processes, emphasizing human judgment, fairness, and the protection of employee dignity.
• Strong use of global and local examples: Referencing the EU AI Act, IBM, Google, LinkedIn, ICTA, John Keells, and Dialog makes your argument grounded and relevant. The contrast between global frameworks and Sri Lanka’s developing landscape is particularly valuable.
• Balanced perspective on benefits and risks: You highlight both the potential of AI to reduce bias and the danger of reinforcing existing inequalities when data is flawed.
• Well-structured challenges section: You clearly outline the major risks bias, transparency issues, privacy concerns, job security, and overdependence, providing a solid basis for understanding why ethical governance is crucial.
Luckmee, thank you for your thoughtful and detailed feedback. I truly appreciate the way you highlighted the importance of balancing technological progress with human dignity. Your observations on global and Sri Lankan examples are very encouraging. You are right that global standards like the EU AI Act provide important direction. As you highlighted, across the world, companies like IBM, Google and LinkedIn demonstrate that the use of AI in Human Resource Management has gained strong attention. Also, the Sri Lankan organisations like Dialog, John Keells are advancing on technology adoption. I agree with your point that AI can support fairer decision-making. However, it can also increase existing inequalities. This happens when data and systems are not carefully governed. This is why strong ethical frameworks, transparent processes, and continuous human oversight are so important. Your comments highlight that the importance of responsible AI in HRM is not just about technology adoption. It's an ongoing organisational responsibility that requires constant attention and care.
DeleteHi Viraj, this is a very interesting topic you have shared. From an HR manager’s perspective, what stands out most is how clearly your argument aligns with established concepts such as Socio-Technical Systems Theory and Ethical Decision-Making Theory. Both emphasise that technology must operate within a framework that protects people rather than overrides them. Your discussion shows exactly why AI in HR should be designed as a partnership between digital capability and human responsibility.
ReplyDeleteAI is no longer just a compliance requirement; it is shaping employer reputation and long-term competitiveness. The examples from IBM, Google, and LinkedIn illustrate how global organisations approach Responsible AI, while the Sri Lankan cases indicate that technology is advancing faster than governance. This reveals an important gap where future CEOs must lead, not only by adopting AI, but by creating ethical systems that guide how AI interacts with people.
Ultimately, your article reinforces a principle that future-ready leaders cannot ignore: AI can process information, but only humans can uphold dignity. The organisations that succeed will be those that use AI to strengthen fairness and trust, rather than replace judgment and empathy. In this sense, ethical AI in HRM is not just a technical challenge; it is a leadership responsibility that shapes the future culture of work.
Laura, Thank you for this thoughtful and detailed comment. I truly appreciate how you have connected the discussion to Socio-Technical Systems Theory and Ethical Decision-Making Theory. These theories clearly support the idea that AI in HRM must operate within structures that safeguard people and maintain accountability.
DeleteYour point about AI becoming a key factor in employer reputation is a very relevant point. AI is quickly becoming a major factor in a company's reputation. It also affects long-term competitiveness. Many organisations now see that using ethical AI is not just an option. It's actually essential for maintaining customer and employee trust. I also agree that global leaders like IBM, Google, and LinkedIn set useful examples. Even most of the Sri Lankan companies are increasingly using AI and analytics in HR practice. For example, John Keells Group advanced analytics with OCTAVE and Dialog with a trilingual AI assistant system demonstrates that responsible AI is also important. However, as you said, there is still a need for clear ethical frameworks and stronger governance to guide responsible in AI.
As you noted, AI can analyse data, but only humans can uphold dignity, fairness, and empathy. Therefore, responsible AI in HRM ultimately becomes a leadership responsibility, shaping organisational culture and guiding how technology supports, not to replace human judgment.
Excellent discussion balancing innovation with human dignity. Your integration of the EU AI Act, IBM's Responsible AI programme, and Sri Lankan examples like OCTAVE and Dialog effectively demonstrates how ethical frameworks must guide AI implementation while preserving fairness, transparency, and accountability
ReplyDeleteLivan, I appreciate your comment. Thank you for the recognition of the balance between innovation and human dignity. My aim was to highlight global frameworks, such as the EU AI Act and industry efforts like IBM’s Responsible AI programme show how ethical standards are becoming essential in the organisation. Also, my examples from Sri Lanka, including John Keells Group data and advanced analytics with OCTAVE and Dialog with a trilingual AI assistant system, demonstrate that responsible AI is also important. Your feedback further supports the idea that fairness, transparency, and accountability must guide AI in HRM to ensure truly human-focused outcomes.
DeleteThe article is well-organized and a lucid and research-based discussion of the ethical aspects of AI in HRM, which clearly reveals the conflict between human dignity and technological innovation. The combination of global, regional, and Sri Lankan outlook enhances the analysis by demonstrating how ethical AI is the challenge that is universal and situational. The scholarly source (Bankins, Rodgers, and OECD principles) provide the discussion with a strong theoretical base, whereas the examples of IBM, Google, LinkedIn, and other top organizations operating in Sri Lanka prove its practical viability. The chapter on challenges is especially useful, in terms of the focus on algorithmic bias, transparency, and data privacy, which is a critical issue, and which determines the trust of employees. With a special emphasis on the significance of human supervision, equality, and responsibility, the blog allows humble and valuable consideration of the ways AI can be used to assist HRM without reducing the value of human beings
ReplyDeleteDishan, thank you very much for your detailed comment. I truly appreciate the way you recognised both the theoretical and practical elements discussed in the article. Especially the tensions between technological advances and the protection of human dignity in HRM. Your observation about the universal yet context-specific nature of ethical AI is very accurate, and it reinforces why global frameworks such as OECD guidelines—and local initiatives must work together. I also agree that issues like algorithmic bias, transparency, and data privacy directly shape employee trust, making human oversight essential. Your reflection adds strong value to the conversation, and it highlights why building responsible, people-centred AI systems remains an urgent priority for HRM.
DeleteEthics are critical when using AI in Human Resources Management. AI can make recruitment, performance reviews, and data analysis better, but it needs to be fair, open, and respectful. (Bankins, 2021; Rodgers et al., 2023).
ReplyDeleteGlobally, rules such as the EU AI Act and company guidelines from IBM and Google stress responsibility when using AI (IBM, 2025; Google, 2025). In Sri Lanka, groups like ICTA, John Keells, and Dialog are making strides in using AI ethically, but solid guidelines are still needed (ICTA, 2025; John Keells, 2024).
Putting ethical rules in place makes sure AI helps employees instead of taking away human interaction, building trust and innovation in HR (Bankins et al., 2022; Deloitte, 2025). Excellent article!
Sashini, thank you for your thoughtful comment. You are correct that ethics play an important role when using AI in HRM. Organisations especially try to balance technological progress with human dignity. Your points about global standards such as the EU AI Act and the AI implementation efforts from companies like IBM and Google highlight how responsibility is becoming a global priority. Appreciate your observation on the Sri Lanka example also shows that AI awareness is growing locally, even though there is a need for training & guidelines. As you noted, research by Bankins, Rodgers and others clearly supports the idea that fair and transparent AI can enhance HRM when it is used responsibly. I appreciate your encouraging feedback on the article.
DeleteA timely and well-balanced piece on the ethics of AI in HR. I appreciate how you link global frameworks (like the EU AI Act) with practical Sri Lankan examples—this makes the debate both relevant and actionable. Your emphasis on human oversight, transparency, and dignity is exactly the perspective organizations need as they adopt AI responsibly.
ReplyDeleteMahesh, thank you very much for your thoughtful feedback. I’m glad that the discussion on global standards, such as the EU AI Act, and the Sri Lankan context added value to the article. Your question about organisations preparing for AI is important. At present, I agree that many organisations, both in Sri Lanka and globally, are still not fully prepared to build strong ethical frameworks for AI in HRM. Most companies are focusing on automation benefits but have limited awareness of risk management, bias control, and transparent decision-making. However, this preparation can improve through clearer regulations, better training, and leadership commitment. With proper guidance and training, organisations can gradually adopt responsible AI practices. These practices can be truly human-centred and protect fairness and dignity.
DeleteDear Viraj,A thoughtful perspective on the balance between AI and humanity in HR. As you highlight, technology should enhance—not replace—fairness, empathy, and dignity. By grounding AI practices in socio-technical and organisational justice principles, organisations can ensure innovation supports people and strengthens trust. This is exactly the direction responsible HR must take.
ReplyDelete