Influence Of Ai-Based HR Recommendation Systems on Employee Trust and Work Engagement: The Moderating Role of Authentic Leadership
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Background: Artificial Intelligence (AI) is increasingly integrated into Human Resource Management (HRM), particularly through AI-based recommendation systems for recruitment, performance appraisal, and employee development. However, AI adoption raises challenges concerning employee trust, work engagement, and organizational leadership.
Objectives: This study aims to examine the impact of AI-driven HR recommendation systems on employee trust and work engagement, with a particular focus on the moderating role of authentic leadership.
Method: A convergent parallel mixed-methods approach was employed involving 228 employees and HR professionals from various industries in Pakistan. Quantitative data were collected through structured surveys, while qualitative data were obtained from 15 semi-structured interviews
Result: The findings indicate that AI-driven HR recommendation systems can enhance personalization and operational efficiency. However, their effectiveness in strengthening employee trust and work engagement is significantly influenced by authentic leadership. Leaders demonstrating transparency, ethical behavior, and relational integrity contribute to more positive perceptions of AI-based HR systems. Qualitative findings further highlight the importance of effective communication, human interaction, and ethical considerations in addressing employee concerns regarding AI adoption
Conclusion: Successful AI integration in HRM requires a balance between technological advancement and authentic leadership. Human-centered and ethically grounded leadership practices are essential for fostering employee trust and work engagement, particularly within the socio-cultural context of developing countries such as Pakistan.
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