LEADERSHIP STRATEGIES FOR IMPLEMENTING ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT IN SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

The introduction of artificial intelligence (AI) into human resource management presents a significant challenge and opportunity for small and medium-sized enterprises (SMEs). This study examines key strategies that leaders can adopt to successfully integrate AI technologies while minimizing employee resistance and ensuring organizational sustainability. Leaders play a pivotal role in fostering a digital culture by empowering employees and promoting the benefits of new technologies. Transparent communication, employee involvement in decision-making processes, and providing training and reskilling opportunities are identified as critical factors for ensuring acceptance of change. Strategic planning includes setting clear goals, allocating resources, and analyzing potential risks and challenges. Furthermore, leadership skills such as emotional intelligence, empathy, and the ability to inspire teams are emphasized. These skills help mitigate stress and uncertainty among employees, which often accompany technological transformations. The research also highlights the importance of aligning AI integration with the organization's values and long-term vision to build trust and ensure cohesion. By demonstrating a commitment to ethical AI practices and addressing employee concerns proactively, leaders can foster a sense of inclusion and shared purpose. The findings of this research can serve as guidelines for leaders in the SME sector, enabling them to fully leverage AI’s potential to enhance efficiency and productivity in human resource management.