In the era of digital transformation and evolving work dynamics, the integration of artificial intelligence (AI) has emerged as a transformative tool in reshaping human resource management practices within private sector banks. As private sector banks navigate the evolving landscape of work arrangements, the integration of AI technologies into HR policies and procedures becomes imperative to effectively manage a hybrid workforce. This paper examines how private sector banks are adapting their HR practices to accommodate remote, hybrid, and on-site employees through the utilization of AI tools. By exploring the intersection of AI and HR in the context of a hybrid workforce, this study investigates the impact on employee engagement, productivity, and well-being. Key considerations include the development of inclusive policies, training programs for AI implementation, data privacy and security measures, and strategies for fostering collaboration and communication among dispersed teams. Insights from this research aim to guide private sector banks in harnessing the potential of AI to create a cohesive and agile workforce that thrives in the future of work. By exploring the practical implications of AI adoption in HR functions, this study aims to offer actionable recommendations for private sector banks looking to leverage technology to navigate the complexities of managing a diverse and distributed workforce. Through a comprehensive analysis of the evolving landscape of work arrangements and the role of AI in facilitating efficient HR practices, this research contributes to the ongoing dialogue on shaping the future of work in the banking sector.