AI adoption by human resource management: a study of its antecedents and impact on HR system effectiveness

Abstract

PurposeThe purpose of this study is to explore and examine the determinants of artificial intelligence (AI) adoption by human resource management (HRM). Further, the impact of AI adoption by HR department on their effectiveness has also been tested.Design/methodology/approachA model explaining the antecedents of AI adoption by HRM is proposed in this study. The proposed model is based on task–organization–environment and task–technology fit models. A two-step partial least square-based structural equational modelling (PLS-SEM) has been used for testing the model. Data was collected from 210 HRM employees (only senior level or specialized HR positions), working in IT firms located in Delhi-NCR region.FindingsLiterature review shows that among others, organizational preparedness, perceived benefits and technology readiness determine AI adoption which in turn can make HR system more effective. Results of PLS-SEM support all hypothesized relationships and validate the proposed model.Originality/valueConsidering paucity of research on antecedents of AI adoption by human resource department, this study adds significantly to the body of knowledge. Additionally, based on the findings of statistical analysis, certain AI-related recommendations are given to HRM.