AI-Augmented ERP Systems as Catalysts for HR Digital Transformation: A Framework for Future-Ready Workforce Competency Study in Maharashtra State

Abstract

This study examines the application of AI-advanced ERP systems in Maharashtra, India, and how this is utilized to digitize human resources (HR) and act as a stimulant to the competence of workers. However, with the introduction of artificial intelligence into the ERPs, these ERP systems open new prospects of intelligent decision-making, prediction analytics, and automation within the HR functions as the businesses transform towards Industry 5.0. The quantitative methodology of the study involved forty respondents who had varied sectors of organizations implementing the ERP systems, and this included HR managers and ERP professionals, as well as senior executives of an organization. Statistical analysis confirming the correlation between the variables, namely AI-ERP integration, HR-digital process maturity, and workforce competence, with multiple regression, reliability, and correlation is applied. The two principal findings are the model fit of R 2 = 0.767 that is significant with significant predictors of AI integration and ERP integration ( 0.238), digital HR process maturity ( 0.332), and human-AI synergy ( 0.304).The findings indicate that AI-ERP integration can significantly enhance the process of HR digital transformation and that this connection is mediated by the human-AI synergy, which enhances the impact on the competence of the workforce. The results indicate that HR departments can become less administrative than in the past and instead become strategic, data-oriented collaborators contributing to the agility and digital readiness of employees with the help of AI-driven ERP systems. The level of competence of the workers in case an AI-ERP solution is adopted by the organization can be increased by about 23–33%, based on the spheres of processes in the digital human resources and the severity of the human-AI cooperation. To achieve sustainable workforce competence, the study provides a regional framework that would relate the technological infrastructure, HR digitalization, human-AI relationship, and ecosystem readiness. It further offers practitioners and policymakers feasible concepts in how to bind the technology and human capital policies so as to develop a workforce that is ready to grapple with the future in a fast-living digital economy.