The impacts of social influence and hedonic motivation on experience and continuance intention of using AI in SMEs’ HRM

Small and Medium Enterprises (SMEs) in Indonesia are increasingly adopting artificial intelligence (AI) to improve operational efficiency and drive business growth. This study aimed to explore the relationship between AI adoption and employee experience in using the technology in SMEs’ human resource management (HRM), with focus on: 1) the impact of perceived social influence (PSI) on perceived performance expectancy (PPE); 2) the effect of hedonic motivation (HM) on perceived effort expectancy (PEE) and perceived individual benefits (PIB); and 3) how PPE, PEE, and PIB influence employee smart experience (ESE) and continuance intention to use (CIU) AI. A quantitative method using a cross-sectional survey was employed. The data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results showed that PSI significantly influences PPE, while HM positively influences both PEE and PIB. Additionally, ESE was found to have a significant impact on CIU. Practically, the findings offer valuable insights for SMEs to enhance AI implementation strategies in HRM, such as fostering social support and ensuring enjoyable technology experiences to improve long-term employee engagement. Theoretically, the study contributes to an extended understanding of AI integration within the workforce by incorporating motivational and experiential factors into technology adoption models.