Strategic Innovation in HRIS and AI for Enhancing Workforce Productivity in SMEs: A Systematic Review

This systematic review critically examines the adoption and integration of Human Resource Information Systems (HRIS) and Artificial Intelligence (AI) in small and medium-sized enterprises (SMEs), with a focus on enhancing workforce productivity and strategic decision-making. Using the PRISMA framework, 100 research articles from reputable sources such as Google Scholar, Scopus, and Web of Science were analyzed. The analysis reveals that HRIS adoption can improve employee productivity by 29%, decision-making by 20%, and operational efficiency by 26%, highlighting its transformative impact on SMEs. The review identifies major challenges, including high implementation costs, limited IT resources, and integration difficulties with AI and machine learning technologies. Despite these barriers, integrating AI into HRIS presents significant opportunities for SMEs, fostering innovation in talent management, compliance automation, and data-driven decision-making, thus creating a competitive edge in rapidly evolving markets. Actionable insights for practitioners emphasize the need for cost-effective, scalable HRIS solutions tailored to the unique operational needs of SMEs, while researchers are urged to further explore AI-driven HRIS advancements to address current gaps in workforce engagement and performance management. This review offers a comprehensive roadmap for future HRIS innovations and underscores the strategic importance of digital transformation in human resources for sustained SME competitiveness.