The integration of Artificial Intelligence (AI) in Human Resources (HR) can bring numerous benefits, including streamlined recruitment, data-driven performance assessments, and enhanced employee engagement. However, in Sri Lanka, as in many countries, this adoption raises significant legal and ethical challenges. Addressing these is crucial to ensure AI is applied responsibly within HR, upholding fair practices, and protecting individuals’ rights.
Legal Considerations
One primary concern is data privacy. AI in HR has a great deal of emphasis on personal data for analytics and decisions, so it is imperative to comply with privacy laws. Sri Lanka's Personal Data Protection Act of 2022 sets out guidelines for the collection, processing, and disclosure of data. It says that all the HR departments that use AI must get the employees consent, only use the data for certain things, and have really good security (Sri Lanka Personal Data Protection Act, 2022). Failure to do so could result in legal ramifications such as fines and damage to reputation.
Additionally, anti-discrimination laws are essential. AI tools tend to rely on past data, and if not properly controlled, that can only reinforce existing biases. For example, in the context of Sri Lanka, it is important to make sure that AI systems do not discriminate against people because of their ethnicity or gender or any other protected category. There are also ethical issues concerning openness and responsibility in the decision process, for after all, individuals do have the right to know how decisions affecting their employment status are reached.
Ethical Considerations
Ethically, fairness and transparency are paramount. AI algorithms might unintentionally perpetuate past biases, which could result in discrimination in hiring or performance evauations. Ethical AI would require frequent audits to make sure these tools are unbiased. Also, when AI is being used in evaluations, the employees themselves should be notified so that there is a sense of transparency and trust in these AI-based processes (Binns, 2022).
Another ethical issue is job displacement. If AI automates the HR processes then there would be no need for those jobs and people would be out of jobs. Companies should not only go for efficiency gains but also consider the welfare of the employee and they should promote reskilling programs to help the affected workers the transition into the new job (Brynjolfsson McAfee, 2018).
Conclusion
While AI offers possibilities for HR in Sri Lanka, there are also limitations. If organizations follow the law and act in an ethical manner they can use ai in a responsible manner and reap the benefits of technology and at the same time treat all employees fairly and justly.

