Artificial Intelligence Adoption in Human Resources Management Processes: A Corporate Start-Up Context in Developing Economies

Abstract

This study examined the role of AI adoption in Human Resources Management (HRM) processes within corporate start-ups in developing economies. Adopting a mixed-methods survey research design, the study sampled 293 Limited Liability SME start-ups across five states in Nigeria, collecting quantitative data via primary questionnaires and qualitative insights through a thematic analysis of 12 peer-reviewed articles. A total of 215 valid responses were used for the analysis, representing a 73% response rate. Thematic findings revealed that AI plays a vital strategic role across key HRM functions, including talent acquisition, personalised onboarding, real-time performance tracking, employee retention analytics, and administrative task automation. Conversely, the empirical analysis indicated that the most critical challenges hindering AI adoption are practical constraints such as the perception that their businesses are too small to implement AI, a severe shortage of AI-skilled personnel, and a limited understanding of how AI functions in HR operations, among others. The study also revealed that AI adoption offers corporate start-ups in developing economies opportunities for efficient recruitment, personalised training, improved performance management, employee retention, administrative automation, and enhanced global competitiveness. The study concluded that AI is significant for the competitive agility and sustainable growth of corporate start-ups in emerging economies. It recommended, among others, a phased technology adoption approach alongside proactive management and government support such as training workshops, grants, and subsidised digital infrastructure to mitigate cost barriers and enhance AI literacy. The study’s focus on start-ups in five Nigerian states limits its generalisability and therefore becomes a limitation to the study.