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Purpose – The aim of this study is to understand how AI technology can be ap-plied in the HRM sector based on the numerous studies. This paper reviews the application of artificial intelligence in human resource management based on the 6 basic dimensions of HRM theory. Design/methodology/approach – This study employs the narrative methodol-ogy for the literature review. We have intentionally avoided the systematic meth-odology for the litera-ture review, as the methodology requires specific research questions which we believe is beyond the scope of the study. Findings: The paper comes out with a conclusion that AI strongly and positively effects 4 dimensions of HRM theory: recruitment, training and development of employees, managing employee performance and evaluat-ing salaries of em-ployees whereas the other two dimensions (human re-source strategies and em-ployee relationship management) are still in the experimental stage. Though AI is highly accepted, the challenges they face in identifying data, creating unbiased data, working on employee happi-ness cannot be ignored. Originality: Extra research we have done showed that in HR they use dif-ferent applications of AI; for example, government departments use the Oracle pro-gram in recruitment. Furthermore, the paper has underpinned some worth men-tioning literature gaps which open a vast scope of further research. We believe addressing the gaps will help the industry to move towards the right direction for adopting AI technology in the HRM sector