Artificial Intelligence (AI) has come up as the recent tool in every aspect of business globally. It can replace a large volume of manpower under Human Resources (HR) with minimum human-errors in routine HR jobs. Employee Services has a major role in HR to facilitate the internal customers of an organization. A good amount of man-hour is engaged, especially in a large organization, to execute these activities for a huge volume of routine work such as processing various claims, providing Compensation and Benefits, Travel Expenses, Medical bills, etc. and payment of other perks as well. Though digitalization has already been into practice for the last few years in most of the big organizations such as Multinational Companies (MNC) and Public Sector Units (PSU), the use of AI has become a necessity now to reduce the cost and minimize the execution time. Many organizations are already into developing and shifting these roles from employees to AI. Several discussions and studies are being done on the recent launch of various AI tools and their usage in day-to-day HR activities. There is still a gap in developing a system to connect Digital Finance with Digital HR for the benefit of employees and the organization. This study is all about identifying the factors affecting to develop and use of AI tools, which can connect these two. It encompasses various aspect of decisions, policies, guidelines and shift of job description from human to machine without employee’s disengagement in top Indian PSUs.