Adoption of AI in human capital development: a multi-industry perspective

Purpose Employees are invaluable resources that are of significant value to a firm when it aims to perform human capital development (HCD). Eventually, any firm intending to preserve a competitive advantage over rivals must invest in HCD. Therefore, to gain a competitive edge in the digital age and to yield net benefits, this study endeavours to define the research problem, i.e. should a firm adopt artificial intelligence (AI) in HCD? For the investigation, it explores various disciplines of HCD, validates whether AI has capabilities to meet the net benefits of HCD, and measures the adoption intention. Design/methodology/approach The source data were collected from 315 individuals through a survey with a five-point Likert-scale questionnaire. The empirical analysis is accomplished using covariance-based structural equation modelling. Findings AI capability plays a positive role in HCD disciplines, including talent management, change management, performance management, human resource management and strategic planning. Subsequently, each AI-enabled HCD discipline positively influences net benefits. Eventually, the net benefits of AI-enabled HCD positively influence AI adoption intention. Moreover, organisational culture moderates the relationship between net benefits and AI adoption intention. Originality/value This study demonstrates an empirical analysis of the adoption intention of AI in HCD by presenting the theoretical underpinnings of HCD disciplines, and subsequently, building and validating the structural relationships amongst HCD disciplines, net benefits and AI adoption intention with organisational culture as moderator. In this vein, the study offers multifaceted advantages of AI-enabled HCD.