Algorithms of Belonging: How AI-driven HRM Fosters Employee Resilience—A Self-concept Theory Perspective with Digital Competence as a Moderator

This study examines how artificial intelligence-driven human resource management (AIHRM) practices influence employee resilience and explores the psychological mechanisms and boundary conditions underlying this relationship. Drawing on self-concept theory, the study examines perceived insider status (PIS) and organisation-based self-esteem (OBSE) as parallel mediators and digital competence as a moderator. Data were collected through a three-wave, time-lagged survey of 344 employees across India. Hypotheses were tested using moderated mediation analysis with bootstrapping and simple slope analysis. The results show that AIHRM is positively associated with PIS and OBSE, which enhance employee resilience. Both PIS and OBSE significantly mediate the AIHRM–resilience relationship. Digital competence strengthens the positive relationships between AIHRM and PIS and OBSE and enhances the corresponding indirect effects on resilience. The findings extend self-concept theory to AI-driven workplaces and identify digital competence as an important boundary condition. Practically, organisations should integrate AIHRM with digital competence development to strengthen employee self-concept and resilience.