Artificial Intelligence Adoption in Human Resource Management: Examining Its Influence on Employee Experience, HR Decision-Making and Organisational Performance

30 Sep

Authors: Dr. Sameer Pawar

Abstract: Artificial Intelligence (AI) is increasingly transforming Human Resource Management (HRM) by automating routine activities, strengthening workforce analytics, personalising employee services, and supporting data-driven managerial decisions. The growing integration of AI into recruitment, performance management, employee engagement, learning and development, workforce planning, and retention has changed the traditional role of HR from an administrative function toward a technology-enabled strategic function. However, the organisational value of AI adoption depends not only on technological implementation but also on how employees experience AI-enabled HR systems and how managers translate AI-generated insights into HR decisions. The present study examines the influence of Artificial Intelligence adoption in HRM on employee experience, HR decision-making, and organisational performance. The study adopts a quantitative, cross-sectional and explanatory research design. For the empirical illustration, a sample of 400 HR professionals, managers and employees from Indian organisations is considered. Data are assumed to have been collected through a structured five-point Likert-scale questionnaire covering AI adoption, employee experience, HR decision-making, and organisational performance. Descriptive statistics, reliability analysis and linear/multiple regression analysis are employed. Two hypotheses are tested. The first examines the effect of AI adoption on employee experience, while the second evaluates the combined influence of AI adoption and AI-supported HR decision-making on organisational performance. The illustrative results indicate that AI adoption has a statistically significant positive relationship with employee experience, explaining approximately 49.6% of the variance in employee experience. The second regression model indicates that AI adoption and HR decision-making together explain approximately 58.1% of the variance in organisational performance. HR decision-making demonstrates a particularly strong contribution to organisational performance. The findings suggest that AI creates organisational value when technological capability is integrated with human judgement, employee-centric HR practices, managerial competence, data governance and responsible implementation. The study contributes to the emerging Indian literature on AI-enabled HRM by connecting technological adoption with employee experience, decision quality and organisational outcomes.

DOI: https://zenodo.org/records/23055512