The enactment of the Digital Personal Data Protection Act, 2023 (DPDPA), marks a significant turning point in India’s legal landscape governing the use of personal data, particularly in sectors driven by advanced digital technologies such as e-commerce. This paper critically explores the multifaceted implications of the DPDPA on artificial intelligence (AI)-powered consumer profiling practices, focusing specifically on its intersection with Human Resource (HR) functions within the e-commerce industry. In the current data-driven environment, AI technologies are widely utilized not only for consumer engagement and behavioural prediction but also in HR domains such as automated talent acquisition, employee performance monitoring, predictive workforce analytics, and personalized learning and development pathways. However, the increasing dependence on AI necessitates robust compliance with privacy laws and raises complex legal, ethical, and organizational challenges, particularly with respect to transparency, consent, data minimization, algorithmic fairness, and accountability. The present study adopts a mixed-method empirical approach, combining quantitative surveys and qualitative interviews with HR professionals, legal compliance officers, and technology managers across leading Indian e-commerce firms. The objective is to assess organizational readiness, HR-led compliance strategies, and the extent to which AI applications in HR and consumer profiling are being modified to adhere to the principles and obligations under the DPDPA. The findings reveal considerable variability in awareness, preparedness, and policy execution, with some organizations having embedded privacy-by-design frameworks, while others continue to grapple with legacy systems lacking compliance architecture. Through this empirical lens, the study further examines how HR departments are becoming strategic partners in data governance—mediating between legal obligations, technological innovation, and employee rights. The paper argues that HR plays a pivotal role not just in internal compliance, but also in fostering a culture of ethical AI usage and transparency in data-driven decision-making. Based on the insights derived, the paper proposes actionable recommendations for enhancing HR involvement in data protection training, AI audit mechanisms, consent management systems, and interdepartmental coordination for responsible AI deployment. By positioning HR at the center of the compliance ecosystem, the study underlines the need for a human-centric and legally compliant approach to AI governance in the e-commerce domain.