Talent Management Transformation: Integrating Artificial Intelligence for Organizational Competitive Advantage

Abstract

The transformation of talent management in the digital era is increasingly influenced by the development of artificial intelligence (AI), which plays a strategic role in enhancing an organization's competitive advantage. AI not only improves operational efficiency but also transforms the way organizations recruit, develop, evaluate, and retain talent. This study aims to analyze the role of AI in talent management, identify challenges faced by the human resources (HR) function, and evaluate the effectiveness of AI in improving employee performance and potential. The research method used is a qualitative approach based on literature review, reviewing scientific articles published between 2020 and 2025 relevant to the topic of AI and human resource management. The study results indicate that AI contributes significantly to the talent selection process, career development, performance evaluation, and employee turnover prediction through data-driven decision-making. However, AI implementation also faces challenges, such as algorithmic bias, lack of system transparency, organizational resistance, and the risk of dehumanizing HR processes. Therefore, the successful implementation of AI in talent management depends heavily on ethical governance, data quality, organizational cultural readiness, and harmonious collaboration between technology and human roles. This research provides academic and practical contributions to understanding how AI can be optimally and sustainably utilized in talent management in the digital era.