AI-driven talent acquisition in Indian IT firms: A qualitative study of automation, impacts, and skill requirements

Abstract

Rapid advances in digital transformation and artificial intelligence (AI) have significantly transformed corporate operations, particularly in human resources (HR). In recent years, businesses have increasingly leveraged AI to enhance efficiency, reduce costs, and streamline talent acquisition (TA) processes. However, limited qualitative insight exists into how HR professionals in Indian IT firms experience this shift in practice. Addressing this gap, the present study examines the extent of HR automation and AI adoption across the TA lifecycle and explores the skills TA professionals must acquire to work effectively with AI-enabled systems. Using a qualitative approach, primary data were collected through semi-structured interviews with 14 h and IT professionals from four Indian IT companies between March and June 2025. Thematic analysis was employed to identify key trends, challenges, and opportunities in digital HR transformation, informed by the Technology Acceptance Model and the digital HR progression framework. The findings reveal that AI-enabled tools such as automated resume screening, chatbots, and predictive analytics are gaining traction, enabling faster, more scalable, and data-driven hiring decisions, while simultaneously raising concerns about data privacy, integration complexities, and resistance to change. This study underscores the cost-efficiency and process benefits of HR automation, emphasising the need for upskilling in data literacy and AI management, and illustrating how organisational changes associated with AI adoption differ across phases of digital HR maturity. By situating AI-driven TA in the context of IT in an emerging economy, this study offers exploratory theoretical and practical insights for HR managers and corporate leaders seeking to balance automation gains with ethical safeguards and human oversight.