Bridging Technology Acceptance and HR Outcomes: How AI Adoption Shapes Employee Engagement and HR Efficiency

Abstract

The rapid diffusion of artificial intelligence (AI) into organizational processes has created both opportunities and challenges for human resource management (HRM). Drawing on the Technology Acceptance Model (TAM), this study examines the impact of AI adoption in HR functions on employee engagement and HR efficiency in large Pakistani organizations. Data were collected through a survey of 480 employees from five major corporations, including Packages Group, Sapphire Group, Nishat Group, Nestlé Pakistan, and Engro Pakistan. Structural relationships were examined using SPSS and PROCESS Macro. Results indicate that perceived ease of use and perceived usefulness significantly enhance behavioral intention to adopt AI, which in turn predicts higher employee engagement and improved HR efficiency. Furthermore, trust in AI, though hypothesized as a moderator, displayed only a modest role, underscoring the complexities of building confidence in algorithmic systems within a developing country context. The findings extend TAM by situating it within HRM outcomes and highlight the strategic role of AI-enabled HR in fostering employee-centered practices. Theoretically, this research enriches the intersection of technology adoption and HRM scholarship by integrating engagement and efficiency as outcome constructs. Practically, the study offers actionable insights for HR leaders navigating digital transformation, emphasizing the importance of cultivating employee trust and aligning AI integration with human values. Limitations such as reliance on cross-sectional data and contextual boundaries are acknowledged, with directions offered for future research in broader organizational settings.