Perceptions of the Impact of AI on Human Resource Management Practices Among Human Resource Managers Working in the Chemical Industry in Saudi Arabia

The objective of this study is to investigate perceptions among HR managers in Saudi Arabia and compare these perceptions across demographic characteristics. Furthermore, the study examines the influence of AI knowledge and frequency of use on perceptions. An online survey was administered to a purposive sample of 420 HR managers working in the chemical industry in Saudi Arabia, and 234 complete responses were received. Data were analyzed using descriptive statistics, one-way ANOVA, and structural equation modeling. Findings show that AI was perceived positively, particularly in salary management, recruitment, performance evaluation, and training, but there were concerns about the loss of jobs and privacy. HR managers with higher education had a higher positive perception towards recruitment, selection, training, and performance appraisals. Knowledge and frequency of AI use had a positive influence on performance appraisal, recruitment and selection, and training, but had no influence on compensation and rewards. This study contributes to the literature by investigating perceptions of HR managers in the Saudi Arabia context. This is especially relevant in the context of technological advancement and Vision 2030 ambitions. Specifically, AI has the potential to create a skilled workforce eager for green innovation.