HR functions have long been considered as a mere administrative task rather than an enabler which drives the business strategy. The advent of AI is redefining and bringing in a paradigm change in the way the HR operates, enhancing HR’s capability to align its initiatives in line with the overall business strategy. HR is inundated with data, not much of it is cognizable enough to make an informed, unbiased and strategically productive decision. HR can leverage the algorithm-driven computing mechanism of AI, to transform big data into actionable insight. Technologies like IBM Watson, Google Assistant, and Amazon Alexa are an upshot of the AI advancement in the technology landscape. AI-powered meeting tools have precluded the need for an HR professional to spend hours on end, transcribing meeting notes, scheduling meetings and following up. The freed-up time can be best utilized in candidate engagement and formulate recruitment strategies for the overall success of the business. AI has the potential to completely reprise HR critical functions like talent acquisition and development, performance management and operations by leveraging its algorithm-driven predictive analysis capabilities, across key HR functions. The interview strategy of an HR team is the fulcrum which defines the relevance of the new hire and its effect on the candidate return on investment. Many HR recruitment strategies are marred by the human bias which often leads to an unstructured interview process undermining the relevance of the whole task at hand. AI removes that bias by its reliance on data rather than human perceptions. It learns the interview structure and the behavioral event interviewing process and coupled with online testing tools, it ascertains and assesses the best candidate for the job. AI-powered chatbots are redefining the way HR interacts with the applicants. Apart from enhancing efficiency, it streamlines and standardizes the HR process by making use of the stored employee information. In addition to this, the other benefits include 24/7 availability, instantaneous response time, ease of accessibility and its ability to have innumerable conversations with the users. The data sets obtained via resumes, candidate interactions, and other social media platform can be easily transformed into meaningful predictive data models by AI which can be eventually used to make informed decision making. The natural language processing capability of AI examine the vocal input, analyze the natural language application and formulate a voice output. The NLP capability is being used by smart assistants to create a hands-free work environment. Its ability to integrate with an organization’s social media workplace platform enables the managers to receive relevant and contextual alerts based on conversations and comments, allowing managers to proactively formulate methods to address any impending reasons of concern. HR functions are no longer regarded as ancillary but a key process in strategizing business activities. By adopting innovations of AI, HR can increase their efficiency while maximizing results and coupled with human capabilities can propel the development of next-generation intelligent HR solutions.