PERCEPTION ON HUMAN RESOURCE (HR) ARTIFICIAL INTELLIGENCE (AI) IMPLEMENTATION AND EMPLOYEE PERFORMANCE IN MALAYSIA

Abstract

Implementation of Artificial Intelligence (AI) in business organization has become a popular topic to be discussed globally due to the effectiveness of AI to increase productivity and operational efficiencies in workplace. In addition, efficient company process specifically in Human Resource Management (HRM) helps to bridge the gap between employees’ performance and the organization’s strategic objectives to provide organization an edge over the competition. Hence, integration of AI in the HRM process will bring various influences on employee performance in Malaysian business organizations. This research aims to find out the positive influence of perception on HR AI implementation on employee performance in Malaysia. Besides, there are there dimensions of perception on HR AI implementation including talent acquisition, human capital development and performance management. This research is a crosssectional study using quantitative methods based on descriptive research and stratified random sampling is used for the study. The methodology adopted in this research is to distribute self-administered questionnaires to participants via online platform to employees who are working in Malaysian companies with the responsibility to measure employee performance.

The findings indicated that talent acquisition, human capital development and performance management as dimensions of perception on HR AI implementation have positive significant influences on employee performance in Malaysia, especially talent acquisition has the highest positive influence on employee performance in Malaysia. However, perception on HR AI implementation has a significant negative influence on employee performance in Malaysia. Hence, based on the findings, this research further clarifies that predetermination of precise company process to implement HR AI before the actual digital transformation is critical to influence employee performance in Malaysia.