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

Olugbenga Adeyanju Akintola; Samson Onyeluka Chukwuedo; Imad Yasir  Nawaz; Oluwole  Shokunbi

doi:10.19164/jbdi.v1i2.1881

Authors

Olugbenga Adeyanju Akintola Department of Business Management, Northumbria University, London http://orcid.org/0000-0002-7554-5422
Samson Onyeluka Chukwuedo Department of Industrial Technology Education, Nnamdi Azikiwe University, Awka http://orcid.org/0000-0001-7496-1945
Imad Yasir Nawaz Faculty of Business and Law, Northumbria University, London
Oluwole Shokunbi University of Wolverhampton, School of Business and Law http://orcid.org/0000-0001-8745-2816

DOI:

https://doi.org/10.19164/jbdi.v1i2.1881

Keywords:

Artificial intelligence, Human resource management, Organizational performance, Organizational efficiency, Technology acceptance, Resource based view

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.