The Role of Artificial Intelligence in Enhancing Employee Performance through SHRM and Organizational Creativity at ABC Bank Yogyakarta Area Office

Abstract : This study explores the role of Artificial Intelligence (AI) in mediating the effects of Sustainability Human Resource Management (SHRM) and Organizational Creativity on employee performance. Conducted at ABC Bank’s Yogyakarta Area Office, the research employs a quantitative survey method and Structural Equation Modeling (SEM) to analyze data. SHRM practices, including HR development, diversity, and occupational safety, directly contribute to employee engagement and productivity. Similarly, Organizational Creativity, encompassing individual creativity, team collaboration, and knowledge creation, enhances innovation and adaptability within the workplace. The findings demonstrate that SHRM and Organizational Creativity have a significant positive impact on employee performance. SHRM fosters a sustainable work environment, while Organizational Creativity drives the generation of new ideas and solutions to meet organizational goals. However, AI’s role as a mediator between these variables and employee performance was found to be statistically insignificant. This suggests that while AI facilitates HR processes and supports strategic decisions, its integration as a mediator depends on factors such as technological readiness and employee adaptability. This study underscores the importance of aligning SHRM and Organizational Creativity with technological advancements to enhance employee performance. While the mediating effect of AI requires further exploration, its potential to transform HR and creativity processes remains promising. These findings provide valuable insights for organizations seeking to optimize employee performance by leveraging sustainable practices, fostering innovation, and integrating advanced technologies.