Mediating Role of Artificial Intelligence on Talent Retention

Background and Objectives: Human resources today plays a vital role in defining the success of any business unit. This article aims at devising a SE Model depicting the mediating role of Artificial Intelligence on employee recruitment, onboarding, engagement and talent retention. The paper investigates the impact of AI on talent retention among employees from IT sectors which applies AI/HR analytics from Chennai and Bangalore. The study is conducted with a structured questionnaire. Primary data was collected from HR managers working in IT Sector in Chennai and Bangalore from organizations which applied Artificial Intelligence for their HR processes. Secondary data also has been used. AI is used to augment business results and HR capabilities. The mediating role of artificial intelligence plays a vital role on HR processes like Employee recruitment, onboarding, engagement and talent retention. This study focused on studying the mediating role of AI on HR processes. Structural equation modeling is used to test this hypothesis. The results outline areas where AI is delivering value in HR practices like, recruiting, onboarding and talent retention. The findings indicated that usage of AI on recruitment and placing employees on the basis of skills, motivating factors and engagement drives has a significant role in talent retention.