Industry 5.0 Readiness and Workforce Efficiency in Public Tertiary Institutions: The Mediating Role of Artificial Intelligence Capability and Digital Innovation.

This study examined the effect of Industry 5.0 readiness on workforce efficiency in public tertiary institutions in South-South Nigeria, focusing on the mediating roles of artificial intelligence (AI) capability and digital innovation. The study adopted a quantitative approach using a cross-sectional explanatory survey design. The population comprised academic and non-academic staff of selected public tertiary institutions across Akwa Ibom, Bayelsa, Cross River, Delta, Edo and Rivers States. Data were collected using a structured questionnaire and analysed using SPSS and SmartPLS through descriptive statistics and partial least squares structural equation modelling (PLS-SEM). The sample size of 350 respondents indicated that Industry 5.0 readiness had a positive and significant direct effect on workforce efficiency (\beta = 0.280), (p = 0.001). Industry 5.0 readiness also showed positive associations with AI capability (\beta = 0.690), (p < 0.001) and digital innovation (\beta = 0.710), (p < 0.001). Furthermore, AI capability (\beta = 0.250), (p = 0.001) and digital innovation (\beta = 0.220), (p = 0.004) were positively associated with workforce efficiency. The mediation results indicated significant indirect effects through AI capability (\beta = 0.173), (p = 0.004) and digital innovation (\beta = 0.156), (p = 0.008). Together, the predictors explained 62% of the variance in workforce efficiency (R^2 = 0.620). These results suggested that Industry 5.0 readiness may enhance workforce efficiency directly and indirectly through AI capability and digital innovation. The study recommended that Public Tertiary institutions should strengthen digital infrastructure, develop staff competencies, integrate AI into institutional processes and promote digital innovation to improve workforce efficiency in public tertiary institutions.