Artificial Intelligence and Human Resource Adaptability to Employee Performance: The Mediating Role of Job Satisfaction

Abstract

This study analyzes the effect of Artificial Intelligence (AI) utilization and human resource (HR) adaptability on employee performance, with job satisfaction as a mediating variable in Micro, Small, and Medium Enterprises (MSMEs) in Malang City. Using a quantitative explanatory design, data were collected from 88 purposively selected respondents and analyzed with Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results show that AI utilization and HR adaptability significantly increase job satisfaction, which positively affects employee performance. HR adaptability also directly improves performance, while AI utilization does not show a direct effect but has an indirect impact through job satisfaction. Furthermore, job satisfaction mediates the influence of AI utilization and HR adaptability on employee performance. These findings confirm that the effectiveness of AI in MSMEs depends on employees' Adaptability and satisfaction, emphasizing the importance of strengthening HR adaptability and managing job satisfaction to optimize AI adoption and enhance MSME competitiveness in the digital era.