An Empirical Analysis of Factors Influencing AI Adoption in Recruitment and Selection in Pakistan

Abstract

Amidst the ongoing competitive challenges in the business environment, AI plays a fundamental role. Despite the pace of AI adoption has shown slow advancement in emerging markets, particularly in Pakistan. Forthcoming years will become essential for organisations to integrate AI into different facets of task management like recruitment and selection (R&S). The core purpose of the research is to address how numerous factors influence the adoption of AI under technology-organisation-environment (TOE) model. The study introduces a basis to examine the importance and interrelationship of key success factors in the adoption of AI. Six key factors influencing AI adoption were derived from a comprehensive review of the literature. The structural model was empirically validated using data collected via a Google-based mail survey conducted in Pakistan. The data is analysed through Structural Equation Modelling, revealing that factors such as relative advantage under Technology factor, technological competency, and support from top-management for Organisational factor, while competitive pressure and vendor support for Environment factor have a significant association with AI adoption regarding R&S in selected firms in Pakistan. The study’s findings offer valuable insights for organisations in Pakistan to refine their AI adoption strategies, particularly in R&S, helping them gain a competitive edge. It also highlights key factors specific to the Pakistani context, enhancing understanding of how local dynamics shape AI adoption in HR. These insights can guide organisations in overcoming challenges and optimising AI’s potential for organisation success.