Ethical AI governance in HRM & organisational strategy: designing trustworthy, inclusive, and sustainable digital workplaces

This paper explores how ethical AI governance within human resource management can strengthen organisational strategy in an era of rapid digital transformation. As organisations increasingly integrate AI into recruitment, performance management, and decision-making systems, concerns arise regarding fairness, transparency, and employee trust. The study employs a qualitative empirical study to examine how responsible AI practices can be designed and implemented within HRM. Key findings indicate that ethical AI governance is perceived as essential for enhancing organisational credibility, supporting fair talent processes, and reducing risks associated with bias and excessive monitoring. The analysis also shows that HRM plays a strategic role in aligning AI use with organisational values, shaping capability development, and fostering a culture that balances technological efficiency with human-centred principles. The paper offers practical guidance for HR practitioners seeking to implement responsible AI policies that contribute to sustainable organisational performance.