Date of Publication :5th May 2025

Abstract: The integration of Artificial Intelligence (AI) in the workplace (especially in the domain of HR) has the potential to significantly enhance organizational efficiency and decision-making. This research paper examines the impact on transparency and accountability in the implementation of AI for both HR professionals and the workforce at large. In addition to this, it illustrates how explainable AI practices are which can assist with productivity, job satisfaction, and making sure AI-based decisions are explainable and justifiable, it also introduces challenges like absence of fairness, damaging privacy, encountering biasness. Using likert scale questionnaire, data is collected from HR professionals and employees across various industries, the study explores how clear communication of AI algorithms, decision-making processes, and data usage can build trust. Case studies and survey findings show that employees who perceive AI implementations as transparent are more likely to trust and engage with the technology. Although dependency and familiarity of AI differs in age, industry, job satisfaction. Ongoing refinement of enhanced integration, bias mitigation, employee engagement, continuous learning will aim to create a more efficient, fair, and engaging work environment, leveraging AI's capabilities to meet the evolving needs of the modern workplace.

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