AI is revolutionizing talent management by enhancing decision making, automating routine tasks, and optimizing HR processes. Initially limited to resume screening and candidate matching, AI now plays a pivotal role in hiring, performance evaluation, training, and employee engagement. It enables personalized learning, predicts employee turnover, and supports data-driven decisions, aligning human capital with organizational goals. Despite its benefits, AI adoption faces challenges like resistance to change, ethical concerns, and data privacy issues. Looking ahead, AI's integration with technologies like augmented reality and blockchain will create immersive, inclusive, and responsive work environments. Its continuous learning capabilities will drive real-time performance management, fostering innovation and sustainability. This chapter explores AI's transformative impact on talent management, highlighting its current applications, challenges, and future potential in reshaping HR into a strategic, data-driven function in the dynamic business world.