Effect of AI-Driven Insights on Sustainable HRM Performance in Commercial Banks: The Mediating Role of Potential Development
Keywords:
Artificial Intelligence; AI-Driven Insights; Sustainable HRM Performance; Potential Development; Employee Development; Commercial Banks; Pakistan; Khyber PakhtunkhwaAbstract
Purpose- This study examines the relationship between AI-driven insights and sustainable human resource management (HRM) performance and investigates the mediating role of potential development. The study responds to the growing need to understand how artificial intelligence (AI)-enabled workforce information can contribute to sustainable HRM outcomes through employee-centered development mechanisms.
Design/methodology/approach- A quantitative, cross-sectional research design was adopted. Data were collected from 297 employees of commercial banks in Khyber Pakhtunkhwa (KPK), Pakistan, using a structured questionnaire based on established measures. Data were analyzed using descriptive statistics, Cronbach's alpha, Pearson correlation, and regression-based mediation analysis with bootstrapping.
Findings- The findings indicate that AI-driven insights are positively associated with sustainable HRM performance (β = 0.592, SE = 0.052, t = 11.38, p < 0.001, 95% CI [0.490, 0.694]). Potential development also significantly mediates the relationship between AI-driven insights and sustainable HRM performance. The indirect effect was significant (B = 0.185, BootSE = 0.037, 95% CI [0.119, 0.265]), while the direct effect remained significant after including potential development as a mediator (B = 0.407, BootSE = 0.058, 95% CI [0.293, 0.521]), indicating partial mediation.
Originality/value- The study contributes to the emerging AI-HRM literature by moving beyond the broad concept of AI adoption and focusing specifically on AI-driven insights as an information-based organizational capability. It further identifies potential development as an employee-centered mechanism linking AI-enabled workforce information with sustainable HRM performance. The findings provide context-specific evidence from commercial banks in KPK, Pakistan, thereby extending existing research conducted in other sectors and countries.
