SCIENCE ARTICLE
Artificial intelligence applications and human resource management practices: the mediating role of digital transformation - evidence from Saudi Maaden company
 
More details
Hide details
1
Human Resources, College of Business Administration - Northern Border University, Saudi Arabia
 
 
Submission date: 2026-01-01
 
 
Final revision date: 2026-01-29
 
 
Acceptance date: 2026-02-09
 
 
Online publication date: 2026-06-18
 
 
Publication date: 2026-06-17
 
 
Corresponding author
Mohamed Ali Saad   

Human Resources, College of Business Administration - Northern Border University, Arar, Saudi Arabia, Arar, Saudi Arabia, 91431, Arar, Arar, Saudi Arabia
 
 
Management 2026;(1):617-638
 
KEYWORDS
JEL CLASSIFICATION CODES
M12. M15. O33
 
TOPICS
ABSTRACT
Research background and purpose:
This study aims to identify the direct impact of artificial intelligence applications on human resource management practices and analyze the role of digital transformation as a mediating variable in this relationship, specifically focusing on the Saudi Maaden Company, the study contributes to the scientific understanding of how artificial intelligence applications can be integrated into core HR processes to achieve greater efficiency, improve decision-making accuracy, and provide innovative solutions to complex challenges in the modern work environment. Its scientific novelty lies in offering a deep understanding of the mediating role of digital transformation between artificial intelligence applications and human resource management practices, thus contributing to the development of both theoretical and practical knowledge in this field.

Design/methodology/approach:
The researcher relied on the descriptive analytical strategy in this study by collecting theoretical material and producing a questionnaire consisting of 43 statements, which was delivered to 160 employees in Saudi Maaden Company. The questionnaires valid for analysis were 127 with a response rate of 79%. The data were examined using the structural equation modelling method (PLS-SEM).

Findings:
The study concluded that the success of artificial intelligence implementation is closely linked to the effectiveness of digital transformation processes within an organization. The findings indicated a direct positive impact of artificial intelligence applications on both human resource management practices and digital transformation, and a positive impact of digital transformation on human resource management practices. Additionally, there was an indirect positive impact of artificial intelligence applications on human resource management practices through digital transformation as an intermediary variable, and this mediation is complete.

Value added and limitations:
This study contributes to deepening the scientific understanding of the impact of artificial intelligence applications and digital transformation on human resource management practices by highlighting their practical dimensions and their role in supporting organizational performance efficiency, through application to Saudi Maaden Company as one of the industrial institutions operating in the mining sector. The results can also be generalized, opening avenues for future research by applying the study to various vital sectors, as well as incorporating additional managerial variables and concepts.
REFERENCES (67)
1.
Alarefi, M. (2024). The Impact of Artificial Intelligence on Business Performance in Saudi Arabia: The Role of Technological Readiness and Data Quality. Engineering, Technology & Applied Science Research, 14(5), 16802-16807. https://doi.org/10.48084/etasr....
 
2.
Alsaif, A., & Sabih Aksoy, M. (2023). AI-HRM: artificial intelligence in human resource management: a literature review. Journal of Computing and Communication, 2(2), 1-7. https://doi.org/10.21608/jocc.....
 
3.
Altin, F. G., & Uysal, I. (2025). Explainable Artificial Intelligence and Digital Transformation in Healthcare. In Digital Transformation and XAI in Healthcare (pp. 1-16). CRC Press. https://doi.org/10.1201/978100....
 
4.
Assaf, R., Omar, M., Saleh, Y., Attar, H., Alaqra, N. T., & Kanan, M. (2024). Assessing the acceptance for implementing artificial intelligence technologies in the governmental sector: an empirical study. Engineering, Technology & Applied Science Research, 14(6), 18160-18170. https://doi.org/10.48084/etasr....
 
5.
Bangura, S., Chitamba, A., Ngidi, L. Z., & Mbona, S. V. (2025). Unraveling the Reshaping of Human Resource Management Function: The Mediating Role of Artificial Intelligence. International Journal Management and Data Analytics, 5(1), 191-202. https://doi.org/10.5281/zenodo....
 
6.
Baojing, Z., Alias, N., & Yaacob, M. H. (2025). The relationship between organizational culture and digital transformation in SMEs: A systematic review. Multidisciplinary Reviews, 8(5), 2025162-2025162. https://doi.org/10.31893/multi....
 
7.
Barišić, A. F., Barišić, J. R., & Miloloža, I. (2021). Digital transformation: Challenges for human resources management. Entrenova-Enterprise Research Innovation, 7(1), 357-366 . https://doi.org/10.54820/gtfn9....
 
8.
Basu, S., Majumdar, B., Mukherjee, K., Munjal, S., & Palaksha, C. (2023). Artificial intelligence–HRM interactions and outcomes: A systematic review and causal configurational explanation. Human Resource Management Review, 33(1), 100893. https://doi.org/10.1016/j.hrmr....
 
9.
Beltrán-Martín, I., & Bou-Llusar, J. C. (2018). Examining the intermediate role of employee abilities, motivation and opportunities to participate in the relationship between HR bundles and employee performance. BRQ Business Research Quarterly, 21(2), 99-110. https://doi.org/10.1016/j.brq.....
 
10.
Bindra, S., Bhattacharya, S., & Bhattacharya, S. (2025). Traditional to digital: human resource management transformation. Journal of Work-Applied Management (ahead-of-print). https://doi.org/10.1108/jwam-0....
 
11.
Bratamanggala, R. I. (2023). Digital Transformation in Human Resource Management: A Systematic Literature Review. International Journal of Education Technology (SIJET), 1(2), 57-64. https://doi.org/10.38035/sijet....
 
12.
Brock, J. K. U., & Von Wangenheim, F. (2019). Demystifying AI: What digital transformation leaders can teach you about realistic artificial intelligence. California Management Review, 61(4), 110-134. https://doi.org/10.1177/153650....
 
13.
Calp, M. H. (2020). The role of artificial intelligence within the scope of digital transformation in enterprises. In Advanced MIS and Digital Transformation for Increased Creativity and Innovation in Business (pp. 122-146). IGI Global. https://doi.org/10.4018/978-1-....
 
14.
Chaube, S. (2025). An Analytical Study on the Untapped Potential of Artificial Intelligence in Human Resource Management. Available at SSRN 5219925. https://doi.org/10.2139/ssrn.5....
 
15.
Chowdhury, S., Dey, P., Joel-Edgar, S., Bhattacharya, S., Rodriguez-Espindola, O., Abadie, A., & Truong, L. (2023). Unlocking the value of artificial intelligence in human resource management through AI capability framework. Human Resource Management Review, 33(1), 100899. https://doi.org/10.1016/j.hrmr....
 
16.
Demir, M., Yaşar, E., & Demir, Ş. Ş. (2023). Digital transformation and human resources planning: the mediating role of innovation. Journal of Hospitality and Tourism Technology, 14(1), 21-36. https://doi.org/10.1108/jhtt-0....
 
17.
Di Vaio, A., Palladino, R., Hassan, R., & Escobar, O. (2020). Artificial intelligence and business models in the sustainable development goals perspective: A systematic literature review. Journal of Business Research, 121, 283-314. https://doi.org/10.1016/j.jbus....
 
18.
Djamin, Z. (2024). Digital HRM Transformation by Artificial Intelligent (AI). Jurnal Penelitian Pendidikan IPA, 10(SpecialIssue), 384-389. https://doi.org/10.29303/jppip....
 
19.
Enholm, I. M., Papagiannidis, E., Mikalef, P., & Krogstie, J. (2022). Artificial intelligence and business value: A literature review. Information Systems Frontiers, 24(5), 1709-1734. https://doi.org/10.1007/s10796....
 
20.
Fernandez-Vidal, J., Perotti, F. A., Gonzalez, R., & Gasco, J. (2022). Managing digital transformation: The view from the top. Journal of Business Research, 152, 29-41. https://doi.org/10.1016/j.jbus....
 
21.
Garg, S., Sinha, S., Kar, A. K., & Mani, M. (2022). A review of machine learning applications in human resource management. International Journal of Productivity and Performance Management, 71(5), 1590-1610. https://doi.org/10.1108/ijppm-....
 
22.
Ghedabna, L., Ghedabna, R., Imtiaz, Q., Faheem, M. A., Alkhayyat, A., & Hosen, M. S. (2024). Artificial intelligence in human resource management: revolutionizing recruitment, performance, and employee development. Nanotechnology Perceptions, 20, 52-68. https://doi.org/10.62441/nano-....
 
23.
Gil de Zúñiga, H., Goyanes, M., & Durotoye, T. (2024). A scholarly definition of artificial intelligence (AI): Advancing AI as a conceptual framework in communication research. Political Communication, 41(2), 317-334. https://doi.org/10.1080/105846....
 
24.
Gobble, M. M. (2018). Digital strategy and digital transformation. Research-Technology Management, 61(5), 66-71. https://doi.org/10.1080/089563....
 
25.
Gong, C. & Ribiere, V. (2021). Developing a unified definition of digital transformation. Technovation, 102, 102217. https://doi.org/10.1016/j.tech....
 
26.
Gong, Q., Fan, D., & Bartram, T. (2025). Integrating artificial intelligence and human resource management: a review and future research agenda. The International Journal of Human Resource Management, 36(1), 103-141. https://doi.org/10.1080/095851....
 
27.
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook (p. 197). Springer Nature. https://doi.org/10.1007/978-3-....
 
28.
Hidayat, M., & Basuil, D. A. (2024). Strategic human resource planning in the era of digital transformation. Management Studies and Business Journal (PRODUCTIVITY), 1(1), 130-137. https://doi.org/10.62207/q7158....
 
29.
Kaczorowska-Spychalska, D., Kotula, N., Mazurek, G., & Sułkowski, Łukasz. (2024). Generative AI as source of change of knowledge management paradigm. Human Technology, 20(1), 131–154. https://doi.org/10.14254/1795-....
 
30.
Kao, L. J., Chiu, C. C., Lin, H. T., Hung, Y. W., & Lu, C. C. (2024). Unveiling the dimensions of digital transformation: A comprehensive taxonomy and assessment model for business. Journal of Business Research, 76, 114595. https://doi.org/10.1016/j.jbus....
 
31.
Khoa, B. Q. (2024). Influential factors of Artificial Intelligence (AI) in the digital transformation of the human resources recruitment process sector in Vietnam. International Journal of Multidisciplinary Research and Growth Evaluation, 5(6), 1181-1193. https://doi.org/10.54660/.ijmr....
 
32.
Kirilmaz, S. K. (2020). Digital transformation in human resources management: investigation of digital hrm practices of businesses. Research Journal of Business and Management (RJBM), 7(3), 188-200. https://doi.org/10.17261/press....
 
33.
Kitsios, F., & Kamariotou, M. (2021). Artificial intelligence and business strategy towards digital transformation: A research agenda. Sustainability, 13(4), 2025. https://doi.org/10.3390/su1304....
 
34.
Knies, E., Boselie, P., Gould-Williams, J., & Vandenabeele, W. (2024). Strategic human resource management and public sector performance: context matters. The International Journal of Human Resource Management, 35(14), 2432-2444. https://doi.org/10.1080/095851....
 
35.
Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods. Information Systems Journal, 28(1), 227-261. https://doi.org/10.1111/isj.12....
 
36.
Krupa, V., Oliinyk, I., Bazaka, R., Shtangret, A., & Sylkin, O. (2024). Technical and technological support for personnel management: digital transformation of enterprise competitiveness through artificial intelligence. International Journal of Religion, 5(11), 260–270. https://doi.org/10.61707/d400c...
 
37.
Lytras, M. D., Serban, A. C., Alkhaldi, A., Aldosemani, T., & Malik, S. (2024). Digital transformation in higher education in times of artificial intelligence: Setting the emerging landscape. Digital Transformation in Higher Education, Part A (pp. 1-22). Emerald Publishing Limited. https://doi.org/10.1108/978-1-....
 
38.
Mahat, D., & Kumar, P. A. (2024). Mapping the Landscape of Artificial Intelligence Applications in Human Resources Management: A Bibliometric Analysis. International Journal of Management, Accounting & Economics, 11(7), 951-973. https://doi.org/10.5281/zenodo....
 
39.
Minbaeva, D. (2021). Disrupted HR?. Human Resource Management Review, 31(4), 100820. https://doi.org/10.1016/j.hrmr....
 
40.
Nawaz, N., Arunachalam, H., Pathi, B. K., & Gajenderan, V. (2024). The adoption of artificial intelligence in human resources management practices. International Journal of Information Management Data Insights, 4(1), 100208. https://doi.org/10.1016/j.jjim....
 
41.
Ncube, T. R., Sishi, K. K., & Skinner, J. P. (2025). The impact of artificial intelligence on human resource management practices: An investigation. SA Journal of Human Resource Management, 23, 2960. https://doi.org/10.4102/sajhrm....
 
42.
Nicolás-Agustín, Á., Jiménez-Jiménez, D., & Maeso-Fernandez, F. (2022). The role of human resource practices in the implementation of digital transformation. International Journal of Manpower, 43(2), 395-410. https://doi.org/10.1108/ijm-03....
 
43.
Ojochona, R. A., Nna, I. M., Agbaeze, K. E., & Isichei, E. (2022). HRM Practices and Organisational Performance. Revista Brasileira de Gestão de Negócios, 24(1), 1-22. https://doi.org/10.7819/rbgn.v....
 
44.
Orhan, A., & Kurnaz, S. (2025). Artificial Intelligence in Human Resource Management Training. In Economic Innovations and Technological Developments in HRM (pp. 405-444). IGI Global. https://doi.org/10.4018/979-8-....
 
45.
Oyekunle, D., & Boohene, D. (2024). Digital transformation potential: The role of artificial intelligence in business. International Journal of Professional Business Review, 9(3), e4499. https://doi.org/10.26668/busin....
 
46.
Pan, Y., & Froese, F. J. (2023). An interdisciplinary review of AI and HRM: Challenges and future directions. Human Resource Management Review, 33(1), 100924. https://doi.org/10.1016/j.hrmr....
 
47.
Pham, N. T., Ngoc Thuy, V. T., Hai Quang, N., Tuan, T. H., & Uyen, N. H. (2025). Digital transformation in human resources management and work-at-home. The Bottom Line, 38(1), 99-122. https://doi.org/10.1108/bl-07-....
 
48.
Purwanto, A., Purba, J. T., Bernarto, I., & Sijabat, R. (2023). Investigating the role digital transformation and human resource management on the performance of the universities. International Journal of Data and Network Science, 7, 2013–2028. https://doi.org/10.5267/j.ijdn...
 
49.
Qamar, Y., Agrawal, R. K., Samad, T. A., & Chiappetta Jabbour, C. J. (2021). When technology meets people: the interplay of artificial intelligence and human resource management. Journal of Enterprise Information Management, 34(5), 1339-1370. https://doi.org/10.1108/jeim-1....
 
50.
Radonjić, A., Duarte, H., & Pereira, N. (2024). Artificial intelligence and HRM: HR managers’ perspective on decisiveness and challenges. European Management Journal, 42(1), 57-66. https://doi.org/10.1016/j.emj.....
 
51.
Ramachandaran, S. D., Doraisingam, P., Nuraini, R., & Chaudhery, U. (2024). Examining the impact of digital transformation on HRM practices in Morocco’s IT sector. Humanities and Social Sciences Letters, 12(4), 811-830. https://doi.org/10.18488/73.v1....
 
52.
Sheikh, H., Prins, C., & Schrijvers, E. (2023). Mission AI: The New System Technology (p. 410). Springer Nature. https://doi.org/10.1007/978-3-....
 
53.
Singh, A., & Shaurya, A. (2021). Impact of Artificial Intelligence on HR practices in the UAE. Humanities and Social Sciences Communications, 8(1), 1-9. https://doi.org/10.1057/s41599....
 
54.
Singh, P. (2025). Artificial Intelligence for Human Resource Management: A Comprehensive Review. Brixton Scholarly Review, 2, 76-95. https://doi.org/10.3126/bsr.v2....
 
55.
Strohmeier, S. (2020). Digital human resource management: A conceptual clarification. German Journal of Human Resource Management, 34(3), 345-365. https://doi.org/10.1177/239700....
 
56.
Tursunbayeva, A. (2019). Human resource technology disruptions and their implications for human resources management in healthcare organizations. BMC Health Services Research, 19(1), 268. https://doi.org/10.1186/s12913....
 
57.
Upadhyay, A. K., & Khandelwal, K. (2018). Applying artificial intelligence: implications for recruitment. Strategic HR Review, 17(5), 255-258. https://doi.org/10.1108/shr-07....
 
58.
Vardarlier, P. (2019). Digital transformation of human resource management: digital applications and strategic tools in HRM. In Digital business strategies in blockchain ecosystems: Transformational design and future of global business (pp. 239-264). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-....
 
59.
Verina, N., & Titko, J. (2019). Digital transformation: Conceptual framework. In Proceedings of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2019”, (pp. 700–727). Vilnius, Lithuania: Vilnius Gediminas Technical University. https://doi.org/10.3846/cibmee....
 
60.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis....
 
61.
Votto, A. M., Valecha, R., Najafirad, P., & Rao, H. R. (2021). Artificial intelligence in tactical human resource management: A systematic literature review. International Journal of Information Management Data Insights, 1(2), 100047. https://doi.org/10.1016/j.jjim....
 
62.
Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326-349. https://doi.org/10.1016/j.lrp.....
 
63.
Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18(2), 295–320. https://doi.org/10.1177/014920....
 
64.
Xu, Y., Liu, X., Cao, X., Huang, C., Liu, E., Qian, & Zhang, J. (2021). Artificial intelligence: A powerful paradigm for scientific research. The Innovation, 2(4), 100179. https://doi.org/10.1016/j.xinn....
 
65.
Yang, Z. (2024). Transformation in organizational and human resource management in the digital intelligence age. In SHS Web of Conferences ,181, p. 04030. EDP Sciences. https://doi.org/10.1051/shscon....
 
66.
Zavyalova, E., Sokolov, D., Kucherov, D., & Lisovskaya, A. (2022). The digitalization of human resource management: Present and future. Foresight and STI Governance, 16(2), 42-51. https://doi.org/10.17323/2500-....
 
67.
Zhang, J., & Chen, Z. (2024). Exploring human resource management digital transformation in the digital age. Journal of the Knowledge Economy, 15(1), 1482-1498. https://doi.org/10.1007/s13132....
 
eISSN:2299-193X
ISSN:1429-9321 (1997-2019)
Journals System - logo
Scroll to top