Artificial intelligence applications in human resource management and their impact on HRM effectiveness in Saudi Arabia

Abstract

Application of artificial intelligence (AI) in human resource management (HRM) creates more efficient hiring practices, increases the engagement and productivity rates, and the performance of decision-making. his research examines the impact of AI-based talent acquisition, AI-based employee engagement, AI-driven workforce productivity, and AI-assisted HR decision-making on HRM effectiveness in Saudi Arabian organizations. A quantitative analysis was conducted using SEM in AMOS 24 to validate the proposed models, based on data gathered from 532 participants across 442 validated surveys. Using AI technology in talent acquisition delivers enhanced capabilities and higher-quality selection in hiring processes (beta = 0.38, p < 0.001). Work satisfaction, employee retention rates, and interaction performance levels are the most substantially influenced by SE (beta = 0.44, p < 0.001). The workforce productivity capabilities of AI support both operational efficiency and strategic workforce planning (beta = 0.41, p < 0.001) and the capacity of AI to enhance HR decisions (beta = 0.37, p < 0.001). Organizations must tackle three AI implementation obstacles including biased algorithm occurrence alongside worker resistance and regulatory standards to create effective AI solutions. AI management depends on trained personnel who require ethical governance standards and human-AI mixed decision frameworks to achieve optimal results without compromising traditional human resource values. Future research must evaluate how AI affects HR performance, as this requires insights into employee safety mechanisms and international acceptance of AI-HRM frameworks.