ARTIFICIAL INTELLIGENCE APPLICATIONS IN IMPROVING HUMAN RESOURCES PRACTICES: THE MEDIATING ROLE OF BUSINESS INTELLIGENCE TOOLS
DOI:
https://doi.org/10.2478/eoik-2025-0094Keywords:
Artificial Intelligence Applications, Human Resources Practices, Business Intelligence Tools, Pharmaceutical Factories, JordanAbstract
This research examines the impact of artificial intelligence applications
(AIA) technologies on human resource practices (HRP) improvement
in Jordanian factories, with a focus on the mediating effect of business
intelligence tools (BIT). This research seeks to examine whether the
AI applications-i.e., auto-hiring, predictive analytics, and performance
management systems-will have a significant impact on HR efficien-
cy and strategic performance, and how BI tools mediate this change.
A quantitative strategy was adopted through the use of an electronic
questionnaire sent to administrative personnel in all 31 registered drug
factories in Jordan, and 398 valid responses were received. Structural
equation modelling was carried out using Smart PLS 4 to determine the
hypothesized relationships and mediation effects. The findings showed
that there is a significant direct positive influence of AI applications on
HR practices, especially for skill development, employee engagement,
and decision-making speed. Additionally, BI tools were also found to
play a powerful mediation role in this relation through data-insights
quality, which facilitates strategic HR practices. The findings identify
the synergic effect of the simultaneous application of AI applications
and BI tools toward the digitalization of HR practices. This research
indicates the importance of digital competence investments to compete
effectively in the pharmaceutical industry. It provides practical implica-
tions for HR managers and policymakers who aim to optimize workforce
management through cutting-edge technologies, facilitate data-driven
decision-making, and drive sustainable organizational development.
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