AI-TECHNOLOGY TRUST AS MEDIATOR IN LINKING PERCEIVED CHANGES IN HR FUNCTIONS AND EMPLOYEE ADOPTION INTENTIONS

Abstract

The study explores how perceived changes in human resource (HR) function relate to employee intentions to adopt artificial intelligence (AI) in the workplace in context of multinational companies (MNCs) in Pakistan and how trust in AI technology mediates this relationship. A quantitative, cross- sectional design was employed and data was analyzed using the Technology Acceptance Model (TAM), the Unified Theory of Acceptance and Use of the Technology (UTAUT), to attain desired outcomes. Mayer (1995) integrative trust model and organizational justice theory as constructs. The results of statistical analysis conducted using SPSS and Hayes PROCESS (Model 4) indicated that perceived changes in HR functions statistically significantly affect the intention to adopt AI technology by employee and the employee's perception of AI-technology trust. Moreover, paths between the perceived HR function changes, adoption intentions are partially mediated by trust in the AI-technology. The results show that technological implementation is not enough for system acceptance; building affective trust depending on the perceived algorithmic ability, benevolence as well as procedural integrity is vital for reducing vulnerability & increasing continued use in AI-supported HRM systems.