The Role of AI in Modernizing PeopleSoft HCM: Bridging ERP and Innovation in Public Sector HR

Abstract

This article explores the integration of artificial intelligence technologies with Oracle PeopleSoft Human Capital Management systems in public sector organizations. By strategically augmenting existing PeopleSoft implementations with AI capabilities, government agencies, educational institutions, and healthcare systems can achieve meaningful digital transformation without costly cloud migrations. The article presents predictive workforce analytics, intelligent HR service delivery, and automated talent acquisition as key enhancement areas, alongside a reference architecture for secure integration. It addresses regulatory compliance challenges, legacy system constraints, and organizational barriers while providing a detailed case study of Midwest State University's successful implementation. The findings demonstrate that AI augmentation offers a cost-effective path to modernization that preserves existing investments while delivering significant improvements in operational efficiency, user experience, and strategic workforce management. The integration strategies discussed bridge the gap between established ERP functionality and emerging AI innovations, enabling public institutions to meet evolving stakeholder expectations while navigating fiscal constraints and complex regulatory environments. This hybrid approach to modernization represents a pragmatic solution for organizations seeking to leverage the power of AI without abandoning their substantial investments in PeopleSoft infrastructure and specialized business processes.