AI in HRM and Workplace Well-Being: The Textile Industry in Lahore Evidence

https://doi.org/10.5281/zenodo.22049397

Abstract

The use of Artificial Intelligence (AI) in Human Resource Management (HRM) is gaining momentum to facilitate operations, better decision-making, and increase efficiency within an organization. Nevertheless, its influence on the perceptions and well-being of employees has not been properly studied, particularly in the emerging economies. This paper examines how AI based HRM practices impact on employee trust, perceived fairness and workplace well-being in the textile sector in Lahore, Pakistan. The survey was quantitative and was carried out on 310 employees, and data were analyzed using SPSS and AMOS. Descriptive statistics, multiple regression, and mediation analysis suggest that AI-based HRM has a significant effect on trust (b = 0.41, p < 0.001) and perceived fairness (b = 0.38, p < 0.001), which are partially mediating factors and have an impact on workplace well-being (R2 = 0.54). The findings indicate that there are positive psychological outcomes as employees experience greater positive emotions with clear, predictable, and intelligible AI systems, which emphasize the importance of perception management in digital HR transformation. The research extrapolates the concepts of Organizational Justice and Social Exchange theories on the AI-HRM sphere and offers managers some practical information: boosting AI transparency, adding human control, and ensuring transparent communication to uphold trust and justice. The results are especially applicable to labor-intensive industries in need of competitive edge with the help of AI without impacting the well-being of employees.