Artificial Intelligence (AI) is transforming Human Resource Management (HRM) by enabling organizations to adopt data-driven approaches for workforce management and decision-making. Among various HR functions, performance appraisal has emerged as a significant area where AI technologies are increasingly being applied. This paper uses a qualitative research approach based on an extensive review of academic literature and industry reports to examine the opportunities, challenges, and future prospects of AI-enabled performance appraisal systems. Through thematic analysis, the study identifies key benefits, implementation barriers, and strategic implications for organizations. The findings suggest that AI can significantly enhance performance management effectiveness when combined with human oversight and ethical governance mechanisms. The paper concludes by proposing recommendations for organizations seeking to leverage AI responsibly and effectively in performance appraisal practices.
Prajapat, A. (2026). Artificial Intelligence in Performance Appraisal: Opportunities, Challenges, and the Path Forward. Journal of Modern Management & Entrepreneurship, 16(02), 172–175. https://doi.org/10.62823/JMME/16.02.9138
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