DETERMINANTS OF ARTIFICIAL INTELLIGENCE ADOPTION IN RECRUITMENT WITHIN THE PAKISTANI IT SECTOR: THE MEDIATING ROLE OF DIGITAL LEADERSHIP

Abstract

Current research discusses how the technological knowledge, the spirit of innovation, the intensity of competition, and the demands of employees determine the implementation of artificial intelligence (AI) in the sphere of human resource management, and the role of digital leadership as a mediating factor. Based on the diffusion theory and organizational theory, the study conceptualizes AI adoption as a multidimensional construct, consisting of evaluation, adoption, and routinization, and, in turn, incorporates these aspects into a composite scale of AI adoption in the recruitment and selection processes. The study is framed within the context of the Pakistani IT industry, a sector that is in the early stages, with a significant number of workers being employed, and with an increasing reliance on online technologies. Based on a structured questionnaire and composite-variable analysis, the results show that the positive and statistically significant effects of technological expertise, innovative Climate, competitive Pressure, and employee expectations on AI adoption are positive and statistically significant in the context of practices related to recruitment. In addition, the findings also support the fact that digital leadership is a critical mediator, which strengthens the relationships between these organizational and environmental antecedents and AI adoption.

The descriptive and regression analysis shows that the highest rates of organizational preparedness toward AI implementation and strong perceptions of digital leadership are present. The addition of digital leadership to the model of analytical power will positively impact the explanatory power of the latter, and the importance of leadership capabilities in converting technological and environmental drivers into successful AI integration should be highlighted. Altogether, the research is based on the empirical data that the effective implementation of AI in human resource management requires not only technological and competitive conditions, but leadership approaches that contribute to the growth of trust, flexibility, and employee involvement. The results show how leadership plays a central role in closing the divide between the contextual drivers and the adoption of technology. The current study provides useful information to organizations that seek to adopt AI-based HR applications in a way that will not only be effective but also humane, and thus guide future strategic endeavors and policy developments.