ARTIFICIAL INTELLIGENCE AND HIGH-PERFORMANCE WORK SYSTEMS IN MANUFACTURING: EXAMINING A MODERATED MEDIATION FRAMEWORK

AI is quickly becoming a part of organizational processes in industries like manufacturing, where efficiency, productivity and competitiveness are the top priorities. Why is this happening? This study investigates the relationship between Pakistan's manufacturing sector and Applied Artificial Intelligence (AAI), highlighting the moderating effect of training programs and the mediating function of employee potential growth Additionally, the research is grounded in the Resource-Based View (RBV) and Social Cognitive Theory (SCT), respectively, and examines how AI technologies improve human capital through the enhancement of skill development, motivation, or organizational performance. The research employs a conceptual approach to examine the direct and indirect effects of AAI on HPWS, exploring how technology enhances human resource development while also contributing to strategic workforce management. These outcomes are incorporated into academic discourse on technology-based HR practices and offer practical solutions for using AAI to maximize employee potential and achieve sustainable competitive advantages in a constantly evolving technological environment.