Key Determinants Influencing Employee’s Acceptance Of Artificial Intelligence Usage 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 study highlights the growing
importance of integrating technology with human resource activities by examining the key factors
that affect the employee acceptance of Artificial Intelligence (AI) in Performance Management
Systems (PMS). Based on the Unified Theory of Acceptance and Use of Technology (UTAUT)
model, the research examines the impact of Effort Expectancy, Performance Expectancy, Social
Influence, Facilitating Conditions, and Trust on employees’ Behavioural Intention to adopt AI, and
how this intention influences Actual Usage. A standardized questionnaire was used to gather data
from 153 respondents, and SPSS was used for analysis. The results demonstrate that employees'
intention to 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 longterm organizational growth.
Keywords: AI Adoption, Trust in AI, UTAUT, Behavioural Intention, PMS