Promoting Decent Work by Enhancing AI Literacy and Implementing AI Adoption for Better Adaptive Performance

The rapid development of Artificial Intelligence (AI) has reshaped organizational processes and work practices. In this context, Artificial Intelligence Literacy (AL) is a key capability that supports employees’ adaptation to AI-enabled environments. This study investigates the effect of AL on Adaptive Performance (AP), with Artificial Intelligence Adoption (AA) as a mediating variable. A quantitative research design was applied, and data were collected from 201 employees and interns across organizations in Indonesia. The proposed model was analyzed using the PLS-SEM method in SmartPLS4. The results indicate that AL has a positive and significant effect on AP, both directly and indirectly through AA. The structural model demonstrated strong explanatory capability, with an R² of 85.6%, suggesting that the proposed variables effectively capture the observed relationships. The results further suggest that individuals with higher AL tend to adopt AI technologies more effectively and adjust to evolving work demands, leading to improved adaptive performance. This study emphasizes the importance of strengthening AI literacy as a critical component of human resource development, consistent with the Sustainable Development Goals (SDGs), particularly Goal 8 (Decent Work and Economic Growth) and Goal 9 (Industry, Innovation, and Infrastructure).