The paper discusses the transformative role that artificial intelligence (AI) plays in human resource management (HRM) and describes how various AI-based technologies have already started shaping some of the core HR functions like recruitment, performance management, and employee engagement. While AI offers remarkable advantages in terms of efficiency, decision-making, and personalization, it also presents a number of serious ethical challenges related to issues of fairness, privacy, transparency, and accountability. The paper proposes a conceptual model that explains the interdependencies between AI-driven HR practices and the ethical dimensions they embed. Relevant theoretical perspectives, such as stakeholder theory, ethics of care, and technological determinism, theoretically underpin it. Therefore, we engage in serious theorizing regarding the ethical limitations of AI in HRM. The paper concludes by offering strategic recommendations for HR professionals to responsibly implement AI, while upholding ethical standards and organizational values. Furthermore, the paper proposes additional avenues for future research through empirical studies, with the aim of testing and further developing the model proposed in this paper. This covers two pieces of useful research: in shaping the future of work, the responsible integration of AI is key; and for HR professionals, it’s time to navigate through ethical and moral complexities with AI to build an inclusive and effective workplace.