This research paper explores the strategic role of Artificial Intelligence (AI) in Human Resource Management (HR) and its impact on employee performance evaluation. The study employs a qualitative and exploratory research methodology, utilizing secondary data sources to understand the experiences and perspectives of various stakeholders. The findings reveal that traditional manual HR performance reviews are time-consuming and unreliable, often relying on subjective opinions and past performance. In contrast, AI-driven assessments offer real-time feedback, ensuring accuracy and timely recognition of good performance, while also alerting managers to potential issues. The literature review highlights the positive and significant influence of AI on HR functions, particularly in employee performance evaluation. The study recommends a robust top-level AI design and implementation within the entrepreneurial ecosystem to enhance HR practices and improve employee productivity and satisfaction. The research concludes that AI has a positive and significant impact on HR function, emphasizing the need for organizations to embrace AI and invest in human capital to succeed in the AI-driven future of HR.This research paper explores the strategic role of Artificial Intelligence (AI) in Human Resource Management (HR) and its impact on employee performance evaluation. The study employs a qualitative and exploratory research methodology, utilizing secondary data sources to understand the experiences and perspectives of various stakeholders. The findings reveal that traditional manual HR performance reviews are time-consuming and unreliable, often relying on subjective opinions and past performance. In contrast, AI-driven assessments offer real-time feedback, ensuring accuracy and timely recognition of good performance, while also alerting managers to potential issues. The literature review highlights the positive and significant influence of AI on HR functions, particularly in employee performance evaluation. The study recommends a robust top-level AI design and implementation within the entrepreneurial ecosystem to enhance HR practices and improve employee productivity and satisfaction. The research concludes that AI has a positive and significant impact on HR function, emphasizing the need for organizations to embrace AI and invest in human capital to succeed in the AI-driven future of HR.