Data-Driven Performance Management: Integrating AI for Personalized Development and Manager Empowerment

Abstract The study will address the potential of applying AI-based performance management to empower managers and individualize the development of employees in the Maharashtra organizations. Respondents in the IT, manufacturing and services, and education fields were also collected through quantitative survey, and 110 respondents were used to do so. The reliability analysis assisted in the establishment of good internal consistency of the dimensions, and regression and correlation analysis showed that there were significant correlations between AI integration, organizational preparedness, personalized development, and management empowerment. The use of AI improves the quality of the performance evaluation, decreases bias, and promotes openness that will result in the advancement of employees. Data dashboards and predictive analytics were used to enable managers to manage talent proactively and make objective decisions. The preparation of organizations was discovered to mediate the effectiveness of the AI systems, and thus, the leadership support and the preparedness of the structure are necessary. According to the findings of the study, the AI-based performance management is a revolutionary practice, and it increases the degree of resilience and flexibility of an organization and employees. The regional gaps are addressed by the findings, which help evolve the academic discourse and provide useful information to the HR directors intending to introduce AI in the performance management plans.