Impact of AI Adoption Intention in Performance Appraisal Process On Actual Usage and Its Effect on Perceived Accuracy and Satisfaction: An Empirical Study

The present study aims to investigate the impact of the willingness of HR Managers to adopt AI, and how this willingness creates greater levels of actual usage of AI in performance appraisals. The study also explores how using AI affects how one perceives the accuracy of the results, and overall satisfaction with appraisal results. A cross-sectional, quantitative survey of HR managers in the Indian IT services sector was the research design adopted in this study. Using a non-probability snowball sampling procedure, an experienced HR manager recruited further participants who provided a broad and adequately representative sample of HR managers. The analysis of the data collected from the questionnaires was done using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine the direct relationships between the key variables of interest in this study. Results show there is a strong correlation between the adoption intention and actual use by HR Managers of AI Technology. As more HR managers began to actively use AI Technology, their perceived accuracy and satisfaction level with their performance appraisals also increased. Additionally, the results of the study show that the Human Agency factor moderated the relationship between Intention and Actual Use of AI Technology, thereby strengthening the movement from Intention to Action. Organizations looking to leverage the benefits associated with an effective, transparent and satisfying use of HR Technology that utilizes AI will find the findings of this study valuable.