THE IMPACT OF ARTIFICIAL INTELLIGENCE ON FINANCIAL AND EMPLOYEE PERFORMANCE EVALUATION SYSTEMS

Abstract

The rapid advancement of Artificial Intelligence (AI) has transformed contemporary organizations, particularly in finance and human resource management. This study investigates the influence of AI-driven tools on financial forecasting and employee performance evaluation, with the objective of understanding how AI enhances decision-making, efficiency, and organizational precision. By integrating AI algorithms into financial systems, organizations can generate more accurate predictions, optimize resource allocation, and support long-term strategic planning. Similarly, AI-enabled performance appraisal systems deliver objective and data-driven evaluations that reduce bias, increase transparency, and provide employees with timely feedback to promote professional growth.

To explore these dynamics, the study employs a mixed-methods approach. Quantitatively, it examines financial forecasting accuracy and performance appraisal metrics, while qualitatively, it captures insights from HR managers and finance professionals through structured interviews and surveys. The research focuses on medium to large enterprises that have adopted AI in financial and HR operations, offering a comprehensive perspective on AI’s organizational impact.

The anticipated findings highlight that AI adoption not only strengthens the reliability of financial forecasting but also streamlines employee evaluation processes. These improvements contribute to higher productivity, more informed decision-making, and overall organizational effectiveness. Nonetheless, the study also addresses key challenges, including high implementation costs, data privacy concerns, and employee resistance to technological change. Ultimately, this research positions AI as a strategic organizational instrument that bridges technological innovation with practical application. By demonstrating AI’s dual role in optimising financial forecasting and human resource management, the study provides actionable insights for managers and policymakers aiming to leverage AI for sustainable growth and resilience in an era of rapid organisational transformation.