Leveraging AI in recruitment: enhancing intellectual capital through resource-based view and dynamic capability framework

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PurposeThe rapid evolution of artificial intelligence (AI) is revolutionizing organizational operations and altering competitive landscapes. This study examines the influence of organizational resources on AI adoption in recruitment, focusing on their role in achieving competitive advantage through effective implementation.Design/methodology/approachThis research utilizes a cross-sectional quantitative approach, applying partial least squares structural equation modeling (PLS-SEM) to data from 290 human resource (HR) professionals. It is grounded in the resource-based view (RBV) and dynamic capability framework (DCF).FindingsThe results reveal that HR competencies and open innovation significantly influence dynamic capabilities, which are essential for AI integration, supported by financial support and information technology (IT) infrastructure. These capabilities enable effective AI adoption, leading to a competitive advantage.Research limitations/implicationsThe cross-sectional data in this study captures the current landscape of AI adoption in recruitment, providing a snapshot of the present scenario in a rapidly evolving technological environment.Practical implicationsThis study offers HR professionals and managers strategic guidance on effectively integrating AI into recruitment processes. By enhancing HR competencies, fostering collaboration and ensuring sufficient financial and infrastructural support, organizations can navigate AI adoption challenges and secure a competitive advantage in a rapidly evolving technological landscape.Social implicationsThe adoption of AI in recruitment can reduce biases, enhance diversity and improve fairness through standardized assessments. However, as AI technologies evolve, continuous human oversight is essential to ensure ethical use and to modify AI systems as needed, further reducing biases and addressing societal concerns in AI-driven recruitment processes.Originality/valueThis research introduces a novel framework that underscores the importance of integrating human expertise with advanced technological tools to ensure successful AI implementation. A key contribution is that HR professionals not only facilitate AI integration but also ensure accuracy, accountability and configure the most suitable AI tools for recruitment by collaborating with AI developers to meet the specific needs of the organization.