Artificial Intelligence Applications in Improving Human Resources Practices: The Mediating Role of Business Intelligence Tools

Abstract This research examines the impact of artificial intelligence applications (AIA) technologies on human resource practices (HRP) improvement in Jordanian factories, with a focus on the mediating effect of business intelligence tools (BIT). This research seeks to examine whether the AI applications-i.e., auto-hiring, predictive analytics, and performance management systems-will have a significant impact on HR efficiency and strategic performance, and how BI tools mediate this change. A quantitative strategy was adopted through the use of an electronic questionnaire sent to administrative personnel in all 31 registered drug factories in Jordan, and 398 valid responses were received. Structural equation modelling was carried out using Smart PLS 4 to determine the hypothesized relationships and mediation effects. The findings showed that there is a significant direct positive influence of AI applications on HR practices, especially for skill development, employee engagement, and decision-making speed. Additionally, BI tools were also found to play a powerful mediation role in this relation through data-insights quality, which facilitates strategic HR practices. The findings identify the synergic effect of the simultaneous application of AI applications and BI tools toward the digitalization of HR practices. This research indicates the importance of digital competence investments to compete effectively in the pharmaceutical industry. It provides practical implications for HR managers and policymakers who aim to optimize workforce management through cutting-edge technologies, facilitate data-driven decision-making, and drive sustainable organizational development.