Exploring How the Adoption of Artificial Intelligence in Human Resource Management Enhances Organizational Performance and Efficiency

Abstract

In the era of the Fourth Industrial Revolution, the use of artificial intelligence (AI) in human resource management (HRM) is increasingly recognized as a powerful tool for improving organizational performance and efficiency. However, despite growing interest in this area, there is still limited and fragmented evidence explaining exactly how AI adoption leads to these improvements. Guided by the Technology Acceptance Model (TAM), the Resource-Based View (RBV), and Dynamic Capabilities Theory (DCT), this study investigates how AI adoption in HRM contributes to organizational performance and efficiency through improvements in HR process efficiency. A cross-sectional survey was conducted among 452 HR personnel and employees working in information technology (IT)-related organizations in Lagos State, South-West Nigeria. Three hypotheses were tested using path analysis. The findings reveal that AI adoption in HRM is positively associated with both organizational performance and organizational efficiency. In addition, HR process efficiency was found to play a mediating role in these relationships, indicating that improvements in HR processes are a key pathway through which AI generates organizational benefits. Overall, this study contributes to the HRM and information systems literature by providing deeper insight into AI-enhanced HRM and offering evidence to support the integration of AI into organizations’ day-to-day operations.