HOW ARTIFICIAL INTELLIGENCE INFLUENCES EMPLOYEE PERFORMANCE: THE MEDIATING ROLE OF HUMAN RESOURCE DEVELOPMENT PRACTICES

Abstract

Pakistan's banking and service sectors are trying to change their traditional manual sides of operations into the installation and use of technologies, machines and computer devices. To achieve goals and more fruitful results, organisations prefer to invest their capital in artificial intelligence technologies. Therefore, this study aims to observe the perception of employees working in the banking sector of Pakistan to explore the impact of artificial intelligence (AI) that influences employee performance, where HRD practices mediate both. This study used the quantitative research approach, and data were tested and analysed using the software tool SPSS, in which 380 respondents participated. The respondents of this study were the banking employees of the region: Pakistan, Rawalpindi, Islamabad, Lahore and Mandi Bahauddin. The results show that artificial intelligence has a significant positive relationship with employee performance and HRD practices, where HRD practices play the role of a moderator among the other two variables. Artificial intelligence helps to enhance employee performance, and HRD practices mediate the relationship between artificial intelligence and employee performance.