Modelling the Nexus Between Artificial Intelligence Usage and Graduate Capital Dimensions: A PLS‐SEM Approach

ABSTRACT In the era of digital transformation, Artificial Intelligence (AI) has emerged as a transformative force in higher education, reshaping how students learn, interact, and prepare for the world of work. This study examined the influence of AI usage on the multidimensional construct of graduate capital (GC) among higher education students in Ghana. Adopting a descriptive survey design, data were collected from 635 students who had prior experience with AI technologies in their academic activities. A purposive sampling technique was used to ensure that participants had meaningful engagement with AI tools. The study employed Partial Least Squares Structural Equation Modelling (PLS‐SEM) using SmartPLS 4 software to analyse the data. Measurement model assessment confirmed strong reliability and validity across constructs, while the structural model revealed that AI usage had a significant and positive influence on all five dimensions of GC: human, social, cultural, identity, and psychological. These findings suggest that integrating AI into higher education learning environments can enhance students' employability attributes, human capital, and psychological readiness for professional life. The study contributes to the growing discourse on technology‐enhanced learning by positioning AI as a catalyst for holistic graduate development and future workforce adaptability. Implications for educational policy and curriculum design are discussed to guide universities in fostering AI‐driven graduate competencies.