The purpose of this study is to identify the effect of artificial intelligence (AI) adoption on human resource (HR) function roles at the organizational level among SMEs in Johor Bahru. HR function roles are treated as the dependent variable, encompassing practices such as teamwork, skill development, communication, performance evaluation, rewards and recognition, and empowerment. AI adoption is regarded as the independent variable, represented by dimensions that consist of technology openness, technology affordances, and technology generativity. A structured questionnaire with 37 closed-ended questions was used to gather data from 381 respondents from SMEs in Johor Bahru. The data was collected using Google Forms. The data were analysed using the Statistical Package for Social Science (SPSS) version 29 to conduct descriptive analysis and determine the levels of AI adoption and HR function roles. The effect of AI adoption on HR function roles was examined using Structural Equation Modelling (SEM) AMOS. The findings indicated that both HR function roles and AI adoption in SMEs were at a high level. The results also indicated that AI adoption has a positive and significant effect on HR function roles suggesting that the integration of AI technologies improves the effectiveness of HR practices. This study provides valuable insights for SMEs in utilising AI to enhance HR functions.
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