This study aims to explore the integration of artificial intelligence (AI) in human resources (HR) in depth, focusing on its impact on organizational productivity, ethical considerations, and the emerging challenges that come with widespread adoption through an extensive literature review. AI-driven HR solutions significantly increase efficiency in hiring, employee engagement, and workforce analytics by automating repetitive tasks and enabling data-driven decision-making. However, the study revealed persistent ethical concerns, particularly regarding algorithmic bias, transparency, and data privacy. Additionally, challenges such as inadequate skills among HR personnel, resistance to change, and ambiguous rules regarding AI deployment were recognized as major barriers. The findings highlight the necessity for organizations to connect efficiency enhancements with solid ethical standards and transparent AI governance. HR leaders are encouraged to emphasize skill development, foster a culture of responsible AI utilization, and engage with evolving legal standards. Addressing these factors is crucial for realizing the full potential of AI in HR while mitigating risks to equity, trust, and employee well-being. Employing AI tools in HR procedures without transparent communication can reduce employee trust. Company leaders should prioritize transparency in their AI applications, particularly when it is utilized to monitor employees or impact decisions that directly concern them. Consequently, to emphasize the significance of artificial intelligence in the current business landscape, we aim to explore the challenges and opportunities of implementing AI in human resource management, along with its ethical implications.