INTEGRATION OF AUTOMATION AND ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT: ITS IMPACT ON ORGANIZATIONAL DIGITAL TRANSFORMATION THROUGH A DIGITAL LEADERSHIP APPROACH

Abstract

The rapid advancement of automation and artificial intelligence (AI) has significantly reshaped Human Resource Management (HRM), positioning it as a strategic driver of organizational digital transformation. This study investigates the impact of automation and AI integration in HRM on organizational digital transformation, with a particular focus on the mediating role of digital leadership. Adopting a quantitative explanatory research design, data were collected from 312 employees and managers working in medium and large organizations that have implemented AI-enabled HRM systems. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The findings reveal that automation and AI in HRM have a strong and positive effect on organizational digital transformation, both directly and indirectly through digital leadership. Specifically, AI-enabled HR practices significantly enhance digital leadership capabilities, including digital vision, data-driven decision-making, and change management competencies. Digital leadership, in turn, exerts a substantial influence on organizational digital transformation, confirming its role as a critical mechanism that translates technological adoption into sustainable organizational outcomes. The mediation analysis further demonstrates that digital leadership partially mediates the relationship between AI-enabled HRM and organizational digital transformation, underscoring the importance of leadership in maximizing the strategic value of digital technologies. This study contributes to the digital transformation and HRM literature by offering an integrated empirical model that connects AI-driven HR practices, leadership capabilities, and organizational transformation outcomes. Practically, the findings highlight the necessity for organizations to align AI investments in HRM with systematic digital leadership development to achieve long-term, sustainable digital transformation.