Impact of AI-Driven HRM and Digital Capability on Future Work Adaptability: Mediating Role of Workforce Future-Readiness

Abstract

This paper looks at how AI-Driven Human Resource Management (AIHRM), Employee Learning Agility (ELA), Workforce Resilience (WR), and Digital Transformation Capability (DTC) affect Future Work Adaptability (FWA) in employees in Pakistan leather industry through the mediator of Workforce Future-Readiness (WFR). The data were gathered through a quantitative cross-sectional design, where the researcher collected data of 300 respondents, and conducted the analysis using the Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings affirm that all the four predictors have significant impacts on WFR and FWA, with a strong mediation of WFR. The model describes the 57.7% and 62.3% variance of FWA and WFR, respectively. The results present important policy implications to policy makers and HR managers working in the manufacturing industry of Pakistan who are going through a digital transformation.

Keywords: AI-Based HRM, Digital Transformation Potential, Future Work Flexibility, Workforce Future-Ready, PLS-SEM, Pakistan Leather Industry.