AI-Enabled Human Resource Management in Emerging and Transitional Economies

This study investigates the transformative impact of Artificial Intelligence (AI) and predictive analytics on decision-making processes within Human Resource Management (HRM), framed as a structural reform in the modern service economy. As emerging and transitional economies integrate Industry 4.0 technologies, the ability to optimize human capital through data-driven insights becomes a critical determinant of firm-level sustainability. Utilizing a cross-sectional survey and Structural Equation Modelling (SEM), the research evaluates how AI-generated insights influence strategic workforce planning, talent acquisition, and employee retention. The findings indicate that AI adoption significantly enhances decision-making accuracy, reduces operational friction, and optimizes resource allocation within the labour function. The study concludes that the structural integration of predictive analytics is essential for sustaining competitive advantage and financial resilience in volatile market environments.Copyright© 2026 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.Article’s history: Received 23rd of November, 2026; Revised 9th of January, 2026; Accepted 19th of February, 2026; Available online: 15th of March, 2026. Published as article in the Volume XXI, Special Issue 1(91), 2026.