Factors Affecting Employee’s Acceptance of Artificial Intelligence in Performance Management System

Abstract: Artificial Intelligence is transforming the way organisations manage employee performance through data driven decision making and real time feedback. This researchsignifies the growing importance of integrating technology with that of human resource activities by analysing the key variablesthat affect the employee acceptance of Performance management systems (PMS) integrated Artificial Intelligence (AI). In based of the UTAUT model that is the Unified Theory of Acceptance and Use of Technology,the research examines impact of Effort Expectation, Social Influence, Performance Expectation, Facilitating Conditions, and Trust on employees’ Behavioural Intention, and how the intention for the adoption of AI influences its Actual Usage.A standardized questionnaire was used to gather data from 153 respondents, and SPSS was used for analysis. The results demonstrate that employees' intentto use AI in PMS is positively and significantly impacted by all the 5 factors, with trust showing the strongest correlation.Additionally, behavioural intention was found to have a significant positive effect on the actual use of AI tools for management. In order to increase acceptance, the study emphasizes how important it is for organisations to ensure user-friendly design, ethical transparency, and sufficient support infrastructure.The findings and discussions provide actionable insights for HR managers and developers designing AI-based PMS for long-term organizational growth. Keywords: AI Adoption, Trust in AI, UTAUT, Behavioural Intention, PMS