Citation:

R. Sangeetha, A. Anusuya. "A Study on AI-Driven Performance Appraisal System in Chennai" International Research Journal of Economics and Management Studies, Vol. 5, No. 5, pp. 188-194, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I5P122

Abstract:

Artificial Intelligence (AI) has transformed modern Human Resource Management practices, especially in employee performance appraisal systems. Traditional appraisal methods are often affected by personal bias, lack of transparency, and delayed feedback. AI-driven performance appraisal systems help organizations improve accuracy, efficiency, and fairness in employee evaluation processes. This study focuses on understanding employee perception towards AI-driven performance appraisal systems in Chennai. The study is based on secondary data collected from journals, research articles, books, and previous studies related to AI and performance management. The paper analyzes the advantages, challenges, and organizational impact of AI-based appraisal systems. The findings reveal that AI improves decision-making, provides real-time feedback, reduces evaluation bias, and enhances employee productivity. However, concerns regarding privacy, data security, and lack of human judgment still exist. The study concludes that AI-driven appraisal systems can significantly improve organizational performance when combined with ethical practices and human supervision.

References:

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Keywords:

Artificial Intelligence, Performance Appraisal, Human Resource Management, Employee Evaluation, AI in HRM, Organizational Performance.