THE ROLE OF AI IN LINKING HUMAN CAPITAL INVESTMENTS TO FINANCIAL RETURNS: A CROSS-INDUSTRY ANALYSIS.

Abstract

This study explores the role of Artificial Intelligence (Al) in enhancing the linkage between human capital investments and financial returns across various industries. As businesses increasingly allocate resources toward employee training, development, and talent acquisition, the ability to quantify and optimize these investments becomes critical. Al offers innovative tools for workforce analytics, predictive modeling, and performance forecasting that can align talent strategies with financial outcomes.

Using a cross-industry comparative approach, this research examines how Al-driven insights help organizations make data-informed decisions about human capital, ultimately driving productivity, innovation, and profitability. The findings reveal that sectors leveraging Al in HR analytics and decision-making exhibit stronger correlations between human capital metrics and financial performance. The paper contributes to strategic management literature by demonstrating how Al acts as a transformative enabler in aligning workforce development with business value creation, offering a roadmap for industries aiming to maximize returns on human capital investments.

Keywords:

Al in HR analytics, human capital investment, financial returns, cross-industry analysis, predictive workforce modeling, strategic management, Al-driven decision-making