AI-Augmented HRM and Employee Performance: Digital Trust Mediation and AI Readiness Moderation
DOI:
https://doi.org/10.55606/jupiman.v5i3.6699Keywords:
AI Readiness, AI-Augmented HRM, Artificial Intelligence, Digital Trust, Employee PerformanceAbstract
This study aims to examine the effect of AI-Augmented Human Resource Management (AI-Augmented HRM) on employee performance by investigating the mediating role of digital trust and the moderating role of AI readiness. A quantitative explanatory approach with a cross-sectional design was employed involving 165 employees who had experienced AI-supported HR practices, selected through purposive sampling. Data were collected using a five-point Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings reveal that AI-Augmented HRM has a positive and significant effect on employee performance and digital trust, while digital trust significantly improves employee performance and partially mediates the relationship between AI-Augmented HRM and employee performance. AI readiness also has a positive effect on employee performance and significantly strengthens the influence of AI-Augmented HRM on employee performance. These findings imply that organizations should complement AI adoption with transparent digital governance, trust-building mechanisms, employee AI competency development, human oversight, and continuous organizational support to achieve sustainable performance improvement.
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