Harnessing the power of artificial intelligence (AI): a paradigm shift in HRM practices for employee sustainable performance

Purpose This study aims to investigate the interplay between artificial intelligence (AI) integration, organizational digital culture, human resource management (HRM) practices and employee sustainable performance in luxury hotels in Malaysia. It seeks to elucidate how AI adoption influences organizational dynamics, shapes HRM practices and impacts employee sustainable performance over time. Design/methodology/approach Using a quantitative approach, survey questionnaires derived from prior research were utilized. Analysis using G*Power software determined an appropriate sample size, with psychometric evaluation validating scale development. Statistical analyses using Statistical Package for Social Sciences (SPSS) 28.0 and SmartPLS 4 confirmed data reliability and validity. Findings Out of the five hypotheses, three were supported. A positive relationship was found between AI adoption and employee sustainable performance, highlighting AI’s potential to enhance productivity and job satisfaction. However, the relationship between AI adoption and organizational digital culture was not supported. On the other hand, HRM practices positively influenced employee sustainable performance. In addition, organizational digital culture was positively associated with employee sustainable performance, underscoring the role of digital fluency in driving workforce productivity. Conversely, AI failed to moderate the relationship between HRM practices and employee sustainable performance. Research limitations/implications The study’s focus on luxury hotels in Malaysia and its reliance on cross-sectional data, suggesting the need for longitudinal designs and diverse organizational contexts in future research. Comparative studies across sectors and countries could offer insights into variations in AI adoption practices and their impact on organizational performance. Originality/value This study contributes to theoretical frameworks by empirically examining complex relationships between AI integration, HRM practices, organizational digital culture and employee performance, emphasizing the importance of considering organizational context and cultural factors in understanding the implications of AI adoption for sustainable performance enhancement.