AI-Driven Predictive People Analytics and Organizational Performance: The Mediating Role of Digital Employee Experience in Hybrid Work Environments

Organizational functions have evolved to accommodate hybrid workplaces, and organizations have come to rely on data more and more when it comes to human resource practices. Artificial Intelligence (AI) - powered Predictive People Analytics are increasingly being utilized to make the optimal workforce decision, improve employee engagement and increase organization performance. However, the empirical evidence of the effects of AI-powered HR policies is lacking. The study aims to examine how AI-powered Predictive People Analytics, Digital Infrastructure, Organizational Support for Hybrid Work, and Hybrid Work Flexibility Impact Digital Employee Experience and Organizational Performance. The method used in this study was a quantitative research design and the data analysis tool used was the model of partial least squares structural equation modelling (PLS-SEM). The findings show that AI-powered Predictive People Analytics, Organizational Support for Hybrid Work and Hybrid Work Flexibility are all important drivers of Digital Employee Experience which then yields a higher Organizational Performance. Organizational Support for Hybrid Work has an indirect impact via Digital Employee Experience as well. The study demonstrates the enabling potential of AI in HR practices supporting sustainable organizational development, which are aligned with SDGs 3 (Good Health and Well-being), SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure).