Artificial Intelligence (AI) has emerged as a transformative force in Human Resource Management (HRM), particularly in the Information Technology (IT) sector where human capital is a key competitive advantage. Chennai, being one of India’s major IT hubs, has witnessed increased adoption of AI-based HR practices to improve efficiency, accuracy, and strategic decision-making. This study examines the adoption of Artificial Intelligence in HR practices of IT companies in Chennai, focusing on recruitment and selection, performance management, training and development, employee engagement, and HR analytics. Primary data were collected from HR professionals and employees using a structured questionnaire. The study analyses employee perceptions, organizational readiness, and challenges associated with AI adoption. The findings reveal that AI significantly enhances HR efficiency and effectiveness, while data privacy, ethical concerns, and resistance to change remain major challenges.