“Role of artificial intelligence for strengthening human resource system via mediation of technology competence”

This study aims to investigate the relationships between artificial intelligence in human resources (HR), technology competence, and HR system strength within organizations. Employing a cross-sectional methodology, survey data were collected from 272 employees working in HR departments in the private sector of Saudi Arabia. Partial least squares structural equation modeling was utilized for analysis to evaluate these relationships. The results indicate a significant positive relationship between artificial intelligence in HR and both technology competence (β = 0.444, p < 0.001) and HR system strength (β = 0.539, p < 0.001). Additionally, there is a positive impact of technology competence on HR system strength (β = 0.272, p = 0.021). These findings underscore the importance of investing in AI technologies and enhancing employees’ technological skills to improve HR system effectiveness. Furthermore, the study emphasizes the necessity for organizations to prioritize agility and adaptability in HR strategies while addressing ethical and social considerations surrounding AI in HR practices. Moreover, the study elucidates the role of artificial intelligence in fostering innovation and sustainability within HR practices, contributing to organizational resilience and competitiveness.


INTRODUCTION
In the swiftly changing digital realm, organizations are increasingly relying on artificial intelligence (AI) technologies to elevate different facets of their operations, such as human resource management (HRM) (Pan et al., 2022).The proliferation of strategic IT applications in HRM has experienced a notable surge.Emerging digital technologies have presented a myriad of challenges to conventional HRM practices.However, compared to other technologies, AI stands out for its unmatched potential and widespread concern regarding its utilization.AI, defined as systems or algorithms endowed with learning capabilities and cognitive functions capable of executing tasks traditionally reliant on human intelligence (Oh et al., 2017), has garnered significant attention.Despite being in its nascent stages of development and integration, industry experts anticipate a remarkable surge in AI adoption over the next decade, projecting a 14% global GDP increase by 2030, with China expected to experience the most substantial boost, reaching 26% (Rao & Verweij, 2017).AI holds tremendous promise in reshaping HRM landscapes.Unsurprisingly, there is a major scholarly interest in AI's application in HRM.Early research suggests that AI can significantly enhance HRM performance for organizations (Faliagka et al., 2014), while others argue that companies may not be adequately prepared for AI integration in HRM due to a lack of expertise (Tambe et al., 2019).AI has the potential to revolutionize HR practices via the automation of daily tasks in organizations.As organizations embrace AI in HR, it becomes essential to understand its implications for HR system strength -the overall effectiveness and efficiency of HR processes and practices within an organization.The realm of HR recruitment is increasingly shaped by technology (Lee, 2011).However, despite this extensive exploration, there appears to be a gap in the literature concerning companies' adoption behaviors toward AI recruitment.

LITERATURE REVIEW AND HYPOTHESES
The HR system encompasses the H2: Artificial intelligence in HR influences HR system strength.
H3: Technology competence influences HR system strength.
H4: Technology competence mediates the relationship between artificial intelligence in HR and HR system strength.

METHODOLOGY
In

RESULTS
The sample comprised 57% males, while 43% identified as females.Age-wise, the largest proportion fell below 25 years (41%), followed by those aged between 26 and 30 (29%).Regarding education, the majority held bachelor's degrees (73%), followed by master's degrees (15%).Notably, a small percentage possessed Ph.D. degrees (1%).In terms of professional experience, a significant portion had less than three years of experience (44%), with smaller percentages having three to five years (27%), six to 10 years (14%), and over 10 years (16%) of experience.Geographically, the majority of participants worked in the central region (65%), while smaller percentages were distributed across the southern (5%), northern (8%), western (12%), and eastern (9%) regions.Furthermore, the job titles varied, with 13% being project managers, 21% program officers, and the majority (67%) occupying other management roles.2 presents the results of the Fornell-Larcker criterion, which is a fundamental tool used to evaluate discriminant validity.This criterion is essential for confirming the distinctiveness and differentiation among the constructs, which is crucial for a thorough understanding of their interrelationships.
Table 3 reveals significant relationships between the variables under examination, accompanied by specific numerical values.Firstly, a notable positive relationship is observed between artificial intelligence in HR and technology competence (H1: β = 0.444, p < 0.001), indicating that enhancements in artificial intelligence in HR correspond to increased technology competence.Similarly, artificial intelligence in HR exhibits a positive and statistically significant impact on HR system strength (H2: β = 0.539, p < 0.001), signifying that improvements in artificial intelligence in HR are associated with a stronger HR system.Furthermore, technology competence demonstrates a positive effect on HR system strength (H3: β = 0.272, p = 0.021), suggesting that higher levels of technology competence lead to improved HR system strength.Additionally, the combined influence of artificial intelligence in HR, technology competence, and HR system strength (H4: β = 0.214, p < 0.001) underscores a positive relationship, indicating that advancements in artificial intelligence in HR result in increased technology competence, subsequently contributing to improved HR system strength.
The R-square values mentioned in Figure 2 for HR system strength and technology competence are 0.446 and 0.198, respectively.This indicates that 44.6% of the variance in HR system strength can be explained by the independent variables, while 19.8% of the variance in technology competence can be explained by the independent variables.AIHR06: "I think that artificial intelligence technology will automate the wage rise depending on the skill increase" 0.797 AIHR07: "I think that artificial intelligence technology will make it easier to recognize the employees who really deserve promotion in their career" 0.816 AIHR08: "I think that the appropriate team member can be identified quickly via artificial intelligence technology" 0.821 AIHR09: "I think that artificial intelligence technology will help me to acquire the necessary skills for my career plan" 0.733 AIHR10: "I think that artificial intelligence technology will help me to determine my ideal career plan" 0.771 HR system strength (HRSS) 0.870 0.900 0.563 HRSS1: "Employees know the human resource management targets and practices" 0.739 HRSS2: "Employees understand human resource management targets and practices" 0.711 HRSS3: "Employees accept human resource management targets and practices" 0.761 HRSS4: "Human resource personnel and executive managers follow the same guidelines in implementing human resource management" 0.781 HRSS5: "We realize the effects we intend to achieve with our human resource practices" 0.729 HRSS6: "All human resource practices are consistent with one another" 0.739 HRSS7: "We invest heavily in the full implementation of our human resource practices" 0.778 Technology competence (TC) 0.761 0.862 0.677 TC1: "The technology infrastructure of our company is available for supporting AI tools" 0.791 TC2: "Our company is dedicated to ensuring that HR employees are familiar with AI tools" 0.858 TC3: "Our company contains a high level of AI tool knowledge" 0.818

DISCUSSION
The findings provide valuable insights into the relationships between artificial intelligence in HR, technology competence, and HR system strength.Firstly, the positive and significant relationship between artificial intelligence in HR and technology competence supports the notion that advancements in artificial intelligence in HR correspond to increased levels of technology competence within organizations.This suggests that as companies invest in and adopt more sophisticated artificial intelligence technologies for HRM, employees are likely to develop greater competency in utilizing these technologies (Charlwood & Guenole, 2022).
Similarly, the positive association between artificial intelligence in HR and HR system strength indicates that improvements in artificial intelligence in HR are linked to stronger HR systems within organizations.This implies that as organizations integrate artificial intelligence tools and processes into their HR functions, they are better equipped to handle HR-related tasks efficiently and effectively, leading to overall improvements in HR system effectiveness and robustness (Rodgers et al., 2023).
Furthermore, the positive impact of technology competence on HR system strength highlights the importance of employees' proficiency

CONCLUSION
This study sheds light on the intricate relationships between artificial intelligence in HR, technology competence, and HR system strength, offering valuable insights for both academic research and practical applications in the field of HRM.The findings highlight the significant positive associations between artificial intelligence in HR and both technology competence and HR system strength, as well as the positive impact of technology competence on HR system strength.Moreover, the combined influence of these variables underscores the interconnectedness and importance of investing in both AI technologies and employees' technological skills to enhance HR system effectiveness.These findings carry several implications for organizational practice, emphasizing the strategic importance of investing in AI-powered HR tools and technologies, prioritizing employee training and development initiatives, and carefully integrating AI into HR practices to complement human capabilities.Additionally, the study underscores the importance of organizational agility and adaptability in navigating the rapidly evolving digital landscape, as well as the need to address ethical and social considerations surrounding AI in HR practices.Future research could explore additional factors influencing HR system strength and further investigate the temporal effects of AI on employee well-being.Overall, by embracing the implications of this study and integrating AI technologies and technological competence into their HR strategies, organizations can enhance their HR system strength, drive organizational performance, and maintain competitiveness in today's digital age.