Artificial intelligence (AI) is swiftly establishing itself as a fundamental technology across various industries, particularly in human resource management (HRM) within small and medium enterprises (SMEs). The integration of AI into HR practices presents SMEs with unparalleled opportunities to improve their operational efficiency. AI-driven solutions are transforming the ways businesses recruit, engage, and develop their workforce. By streamlining HR processes, AI enhances recruitment and selection methods, customises employee development initiatives, and effectively manages performance metrics. The incorporation of AI into HR functions also brings about significant changes in job roles and organizational structures. With AI taking over routine tasks, HR professionals are afforded the opportunity to concentrate on strategic initiatives and nurture interpersonal relationships. Nevertheless, as these advancements unfold, SMEs must address the ethical considerations associated with AI implementation to maintain fairness and transparency within their workforce. As we navigate the ever-evolving technological landscape, AI stands out as both a catalyst for innovation and a topic requiring careful ethical scrutiny in human resource management. This research paper delves into the ways in which HR professionals can successfully navigate the increasing presence of artificial intelligence (AI) in the workplace. With AI playing a significant role in shaping the future of work, HR professionals are tasked with the challenge of adjusting to these new technologies while upholding a people-oriented approach to managing employees. The paper explores the opportunities and obstacles that AI brings to HR, and offers recommendations for utilizing AI to improve HR practices and decision-making. Drawing on real-life examples and proven methods, this paper aims to empower HR professionals with the knowledge and resources necessary to thrive in the age of AI.