AI-DRIVEN TALENT ANALYTICS AND ITS IMPACT ON LEADERSHIP EFFECTIVENESS AND EMPLOYEE ENGAGEMENT IN PAKISTANI ORGANIZATIONS

Abstract

Artificial Intelligence (AI)-driven talent analytics has emerged as a transformative tool in human resource management, enabling organizations to leverage data for strategic decision-making. This study examined the impact of AI-driven talent analytics on leadership effectiveness and employee engagement in Pakistani organizations. Using a quantitative approach, data were collected from 312 employees and managers across IT, banking, and telecommunications sectors. Structural Equation Modeling (SEM) revealed that AI adoption positively influenced leadership effectiveness and employee engagement, both of which partially mediated the relationship between AI adoption and organizational performance. The findings highlight the strategic role of AI in enhancing decision-making, reducing biases, and fostering employee engagement, while emphasizing the importance of digital infrastructure, ethical governance, and culturally sensitive implementation. The study provides actionable insights for HR practitioners and organizational leaders seeking to optimize workforce performance through AI-enabled analytics.