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March 1, 20260 citationsOpen Access

The Importance of Artificial Intelligence in Boosting Employee Performance in the Indian Corporate Secto

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DVDr. Preeti Varshney

Key Points

  • This research aims to explore how AI adoption influences employee productivity and development in the Indian corporate sector.
  • Interviews with 850 employees and 45 HR professionals from manufacturing, IT, banking, and retail sectors.
  • Assessment of AI's impact on employee productivity and organisational performance.
  • Analysis of employee satisfaction related to AI use.
  • AI projects saved 32% of employee time for other tasks.
  • Employee satisfaction increased by 28%, leading to enhanced performance.
  • Companies with well-defined AI strategies showed 41% higher engagement and 35% lower turnover rates compared to the global average.

Abstract

AI adoption has taken baby steps in the Indian corporate sector, which is undergoing an immense transformation. Old practices related to hiring and management of performance are no longer seen as giants standing in the way of AI technology. This research observed the impacts of AI projects on employee productivity, capability development in their learning, and organisational performance in the Indian corporate environment. In an innovation diffusion exercise, manufacturing and IT sector employees and HR professionals were interviewed; a few from the banking and retail sectors were also there (850 employees and 45 HR professionals in total). A couple of key insights of the work are that, for 32 per cent of its time, saved for an employee to work on other tasks, 28 per cent satisfaction has had a subsequent positive effect on performance achieved; this signifies 28 per cent enhanced performance. Acting on behalf of these AI-based entities are Intelligent Performance Management Systems; Self-directed/Personalised Learning Platforms: Light/Shadow Predictions for Talent Optimisation; and Virtual Business Process Assistance. The greater challenges faced by AI proposals are, without a doubt, the lack of digital know-how which is affirmed by 64 per cent of employees. Also, the middle-management level is most notorious for being "lukewarm" about the introduction of new advanced systems when it was there, first, presumably as an issue concerning these employees' job insecurity. Yet, organisations have quite successfully implemented large changes and training systems, which form part of a very wholesome construction for operation-enabling Labour-Human-Centred Design Approaches. Firms with clear AI strategies have engagement 41% higher and employee turnover rates 35% lower than the global average. The study conveys some functional and practical insights that businesses in India must regard upon influencing several AI organisational contexts while retaining socio-technical textures.

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Cite This Study

Dr. Preeti Varshney (2026) studied this question.

synapsesocial.com/papers/69a3d8e7ec16d51705d30406https://doi.org/10.5281/zenodo.18801436
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