The Mediating Effect of Artificial Intelligence in Recruitment and Talent Management Practices on Organizational Performance

Authors

DOI:

https://doi.org/10.36690/2674-5216-2026-1-27-37

Keywords:

artificial intelligence, recruitment, talent management, organizational performance, employee engagement, job security, human resource management, mediation, AI-enabled HRM, performance management, employee retention, workforce analytics

Abstract

Artificial intelligence has become a significant driver of change in human resource management, particularly in recruitment and talent management. AI-based tools are increasingly used for resume screening, candidate matching, personalized training, performance analytics, and retention management. Consequently, AI is viewed not only as a technological innovation but also as a strategic resource that can strengthen organizational effectiveness. This study examines how AI-driven recruitment and talent management practices influence organizational performance and identifies the mediating mechanisms through which this influence occurs. Special attention is given to employee engagement and perceived job security as key explanatory variables. The study is based on a secondary analytical approach using recent empirical studies, conceptual papers, and industry reports published mainly in 2024 and 2025. The analysis integrates insights from social capital theory, the resource-based view, and information processing theory. The findings show that AI-enabled recruitment and talent management positively affect organizational performance both directly and indirectly. Recruitment, performance management, and training initiatives demonstrate positive effects, while employee engagement emerges as a significant mediator. Perceived job security also plays an important mediating role. Organizations that implement advanced AI-driven talent systems report improvements in time-to-hire, cost-per-hire, retention, employee satisfaction, and overall performance. The results suggest that AI creates organizational value not only through efficiency gains but also through its influence on employee perceptions and workplace experience. Future research should apply longitudinal approaches and examine industry-specific and ethical dimensions of AI implementation in HRM.

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Author Biographies

Sandeep Kumar Gupta, Mohan Babu University

Dr., Professor, School of Commerce & Management, Mohan Babu University, Tirupati

D. Threesha, Mohan Babu University

School of Commerce and Management, Mohan Babu University, Tirupati

Thavva Jyoshna, Mohan Babu University

School of Commerce and Management, Mohan Babu University, Tirupati

MS. Navya Sree, Mohan Babu University

School of Commerce and Management, Mohan Babu University, Tirupati

Hiranmai M, Mohan Babu University

School of Commerce and Management, Mohan Babu University, Tirupati

Manjula P, Mohan Babu University

School of Commerce and Management, Mohan Babu University, Tirupati

Shaik Farhana, Mohan Babu University

School of Commerce and Management, Mohan Babu University, Tirupati

Saranya T. S., Amity University

Dr., Associate Professor, Head of the Institute, Amity Institute of Behavioural Health and Allied Sciences, Amity University, Bengaluru

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Published

2026-03-31

How to Cite

Gupta, S. K., Threesha, D., Jyoshna, T., Sree, M. N., M, H., P, M., Farhana, S., & T. S., S. (2026). The Mediating Effect of Artificial Intelligence in Recruitment and Talent Management Practices on Organizational Performance. Public Administration and Law Review, (1 (25), 27–37. https://doi.org/10.36690/2674-5216-2026-1-27-37

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Section

CHAPTER 1. MODERN TRENDS IN PUBLIC ADMINISTRATION