Abstract

Artificial Intelligence (AI) has become a transformative force in the modern workplace, reshap- ing decision-making processes, enhancing operational efficiency, and influencing the dynamics of human resource management. One of the critical areas where AI demonstrates substantial potential is in predicting, managing, and mitigating employee attrition. Employee attrition remains a pressing organizational challenge, incurring substantial costs in recruitment, training, and lost productivity. This research investigates the dual impact of AI on employee attrition and organizational profitability, exploring both the opportunities and the challenges that arise from its integration into human resource and business operations. The study examines how AI-driven predictive analytics tools enable organizations to forecasting attrition risks more accurately than traditional HR methods, AI empowers managers to design targeted retention strategies such as personalized training programs, career development opportunities, and workload adjustments. Furthermore, AI-enabled HR systems contribute to cost savings by minimizing recruitment expenses, lowering the risk of hiring mismatches, and optimizing talent manage- ment processes. In parallel, the research highlights the relationship between AI adoption and organizational profitability. Beyond HR, AI drives financial gains by streamlining processes, improving productivity, and enhancing decision-making across departments such as operations, marketing, and supply chain management. Profitability is further reinforced through reduced attrition-related costs and improved workforce stability. However, the study also emphasizes that the positive impact of AI on profitability is contingent upon responsible implementation. Ethical considerations, particularly concerning employee privacy, algorithmic transparency, and fairness, play a mediating role in shaping organizational outcomes. Resistance to change, lack of trust in AI-driven recommendations, and cultural misalignment may limit the effectiveness of AI tools if not properly addressed. In conclusion, the integration of AI into workforce analytics and human capital management offers a powerful lever for organizations to improve both employee retention and financial performance. However, its impact is not uniform and depends on the interplay between technology, ethics, leadership, and employee trust. The research contributes to academic and managerial discussions by offering actionable insights into how AI can be harnessed to create resilient, profitable, and people-centered organizations in an era of rapid digital transformation. Keywords: Artificial Intelligence, Employee Attrition, Workforce Analytics, Predictive Ana- lytics, Organizational Profitability, HR Management, Retention Strategies, Ethical AI.

Library of Congress Subject Headings

Artificial intelligence--Business applications; Labor turnover--Data processing; Employment forecasting; Profit

Publication Date

12-5-2025

Document Type

Thesis

Student Type

Graduate

Degree Name

Professional Studies (MS)

Department, Program, or Center

Graduate Programs & Research

Advisor

Sanjay Modak

Advisor/Committee Member

Ioannis Karamitsos

Campus

RIT Dubai

Plan Codes

PROFST-MS

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