COMPARATIVE ANALYSIS: THE INFLUENCE OF ARTIFICIAL INTELLIGENCE IMPLEMENTATION IN HUMAN RESOURCE MANAGEMENT ON EMPLOYEE PERFORMANCE

Abstract

This research aims to examine the differences in the implementation of Artificial Intelligence (AI) in human resource management practices and its impact on employee performance. The study population consists of organizations in West Sumatra and its surrounding areas, with a distinction between those implementing AI and those that do not. Sampling was conducted using a Proportional Sampling technique, randomly selecting 14 organizations implementing AI and 33 organizations that do not. The research model employs Structural Equation Modelings (SEM) with Smartpls 3.29 for analysis. The findings, in general, conclude that HR practices such as recruitment, selection, development, training, and performance management do not exhibit significant differences in employee performance between the two types of organizations. However, evidence indicates that HR practices in performance management significantly influence employee performance in organizations implementing AI. On the other hand, there is also a significant influence of HR practices in recruitment and selection on employee performance in organizations not implementing AI. This research's results can serve as a reference for all organizations to assess the role of Artificial Intelligence (AI) in maximizing HR practices to support the achievement of more optimal organizational goals.