Factors that impact AI-augmented HRM in micro, small, and medium-sized enterprises MSMEs: A task viability theory approach

Artificial intelligence (AI) augmented Human resource management is emerging globally in Micro, Small, and medium enterprises (MSMEs). Although AI-augmented HRM is increasingly being viewed as a strategy for boosting MSMEs’ productivity, the academic literature has not yet provided a strategic framework to direct HR managers in adopting and utilizing it. This study presents a strategic framework for MSMEs to adopt and use AI while simultaneously investigating the AI fitment and AI viability of HRM practices that have been augmented by AI. The proposed model incorporates AI characteristics, HRM task characteristics, economic feasibility, organization capacities, IT infrastructure and IT skills, impacting AI adoption and usage. 271 employees responded to the poll, which was distributed to HR practitioners and academicians. Structural equation modelling using Smart PLS tool was utilized to validate the conceptual model. Our findings show that HRM tasks and AI technology characteristics contributed to AI fitment. IT infrastructure and IT skills, and organization capacities contributed to AI viability. It was thought-provoking to note eco-nomic feasibility did not contribute to AI viability. From a AI-augmented HRM adoption and usage perspective, AI fitment was significant, while AI viability was insignificant. The study has important theoretical and manage-rial implications for MSMEs. MSMEs have to focus on fitment and viability of AI-augmented HRM to become employee-centric, to give data-driven in-sights, automate repetitive operations, and enhance decision-making.