Human resource management (HRM) is changing dramatically in the age of digitization, with advances in information technology, data analytics, and automation. This study investigates the changing role of HRM in using digital tools to improve recruiting, staff involvement, growth of talent, and job performance evaluation. The use of artificial intelligence (AI), machine learning (ML), and big data into HR processes is changing the way businesses manage their personnel, allowing for more effectiveness, customization, and strategic choice-making. This study investigates both the potential and problems that personnel managers confront while responding to digital advancements. This research paper aims to find out the importance of digital tools like artificial intelligence, machine learning, and data analytics in improving HR activities such as staffing, training, and worker assessment and the problems that HR professionals face while embracing and integrating new technology while maintaining human-centered management techniques. It was found that the change to digital HR involves careful consideration of data protection, ethical AI use, and the need to combine technology with the human touch in order to retain employee well-being and company culture.