Artificial Intelligence Adoption and Organizational Performance: The Facilitating Role of AI aided Human Resource Management Practices

Abstract

In modern industrial arena Artificial Intelligence (AI) has become the integral tool to escalate the organizational performance such as improving operational efficiency, effective decision making and achieving sustainable competitive advantage. In the area of Human Resource Management (HRM), AI has been an indispensable part specially in the sector of staffing and recruitment, employee training and motivation, employee performance measurement, ensuring proper industrial relations and managing diversified workforce. However, in spite of enormous use of AI tool is HRM sector, there is not enough evidence that it creates significant impact on the enhancement of employee performance in an organization. This study examines the relationship between adopting AI in the sector of HRM to measure the organizational performance. Based on the Resource-Based-View (RBV) and Technology-Organization-Environment (TOE), the study states a theoretical model aligning AI adoption, AI aided HRM practices, organizational and employee performance. In this research design quantitative approach have been used where structured questionnaire were the main tool to gather data from various HR experts from various industries. In this study 380 respondents have been taken as sample and data were analyzed via spss and smart PLS to evaluate the reliability, validity and the effects of mediation. It is probable that uses of AI will have a positive impact in the employee and industrial performance. However, AI aided HRM has shown an enormous implication in the overall activities of an industry not fully but partially. The findings of the study expected to widen the opportunity further in the near future so that AI aided HRM activities can further perform better to achieve an organizations objective as smoothly as possible. This study has also shown the practical procedures for future leaders or managers to find a gateway from all the odds that may arise from this type of situation.