This study assessed the Artificial Intelligence (AI) driven human resource optimization and institutional performance in the Nigerian public sector, focusing on Enugu State. The specific objectives were to examine the effect of AI applications on recruitment, evaluate AI-driven human resource practices on service delivery efficiency, and identify the impact of AI on service output quality. A descriptive survey research design was adopted, with a study population of 12,886. Using Yamane’s formula, a sample size of 388 respondents was determined. Data were collected through structured questionnaires and analyzed using descriptive statistics (frequency distribution, percentages, mean, and standard deviation) and inferential statistics (Pearson correlation). Findings revealed that AI applications significantly improve recruitment processes, enhance service delivery efficiency, and promote quality service output through reduced errors, transparency, and resource utilization. The study concluded that AI is a transformative tool for operational efficiency in Enugu State’s public sector. It recommended increased investment in AI-based recruitment systems, continuous training of HR personnel, and the establishment of clear ethical guidelines to ensure fairness, transparency, and sustainability of AI adoption.