AI, HR Governance, and Human Capital Risk in Indonesia’s Digital Banking: A Systematic Review

<jats:p>While AI is set to make banking faster and better, discussions often overlook its significant impact on human capital and governance. The current literature is still fragmented, largely addressing AI adoption, human resource management (HRM), and sustainability as independent domains, ignoring the structural risks that develop where they can overlap. This study explicitly addresses this gap by examining how AI simultaneously reorganises HR competencies, creates human capital risks, and necessitates governance practices consistent with sustainability goals. This research employs a systematic literature review (SLR) of 68 peer-reviewed articles obtained from three distinct streams of literature: banking, HRM, and sustainability, using the PRISMA 2020 protocol. Results challenge dominant techno-centric perspectives, suggesting that AI is not simply a tool for boosting productivity but rather an underlying structural driver of both human capital risk—algorithmic bias, lack of transparency and accountability—and worker vulnerability. What is more relevant about the study is that it provides a key takeaway: that without sound HR governance development, AI implementation may undermine organisational legitimacy and have ethical and sustainability impacts. Positioning HR governance as an integrative and corrective mechanism, this study provides a framework linking AI capability, human capital risk, and sustainability. This research provides a different perspective on the literature by shifting the debate around AI-enabled HR transformation from a technological issue to a governance problem that carries multifaceted ramifications toward sustainable digital banking, especially in developing economies such as Indonesia.</jats:p>