• Mrs. G. Mounika

Artificial Intelligence (AI) is rapidly reshaping the landscape of organizational management, and its application in performance management has become a focal point of research and practice. The banking sector, particularly in India, is undergoing a significant transformation driven by technological adoption, digitalization, and evolving workforce expectations. This review explores the role of AI-driven performance Appraisal practices in the Indian banking industry, assessing how emerging technologies are redefining traditional performance appraisal systems and enabling more efficient, transparent, and data-driven approaches. AI technologies such as predictive analytics, natural language processing and machine learning algorithms are being integrated into performance management frameworks to evaluate employee productivity, provide real-time feedback, identify training needs, and support leadership decisions. Indian banks are increasingly adopting AI-powered HR analytics platforms to align employee goals with organizational objectives, enhance accuracy in performance evaluation, and minimize human biases. The review highlights that AI-driven systems not only improve operational efficiency but also contribute to employee engagement, retention, and long-term organizational sustainability. Despite these advantages, several challenges hinder the widespread adoption of AI in performance management. Key issues include high implementation costs, concerns over data security and privacy, lack of digital readiness among employees, and ethical considerations surrounding algorithmic decision-making. The paper concludes that AI has immense potential to revolutionize performance management practices in the Indian banking sector by fostering transparency, accountability, and strategic alignment. However, successful adoption requires a comprehensive approach that integrates technological innovation with regulatory compliance, employee training, and cultural readiness.

Artificial Intelligence, Performance Management, Performance Appraisal, HR Analytics, Employee Productivity, Digital Transformation.

"ROLE OF AI-DRIVEN PERFORMANCE APPRAISAL PRACTICES IN BANKING SECTOR: A REVIEW IN INDIAN PERSPECTIVE.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 8, page no.295-301, August-2025, Available :http://www.jetir.org/papers/JETIRHC06043.pdf

"ROLE OF AI-DRIVEN PERFORMANCE APPRAISAL PRACTICES IN BANKING SECTOR: A REVIEW IN INDIAN PERSPECTIVE.", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 8, page no. pp295-301, August-2025, Available at : http://www.jetir.org/papers/JETIRHC06043.pdf