Abstract

Artificial intelligence (AI) tools are now widely incorporated into HR functions, yet employees often remain uncertain about how fair and transparent these systems truly are. This study explores how professionals in the IT sector interpret fairness in AI-supported HR decisions and how these perceptions influence their trust in AI, readiness to use digital tools, and inclination toward innovation. Survey data from 258 employees in Karnataka were analysed using structural equation modelling, which showed that distributive, procedural, and interactional justice each contribute significantly to building trust in AI systems. Trust emerged as a complete mediator, linking fairness judgements to digital readiness and innovation behaviours. Organizational culture strengthened the trust–readiness link, suggesting that supportive work environments help employees engage more confidently with AI technologies. Latent profile analysis further revealed three distinct employee groups based on fairness and trust levels. The study highlights the importance of transparent communication, fair system design, and culture-building efforts to support human-centred AI adoption in HRM.

Authors

Abhishek Suvarna, V. Radhakrishna Gowda
St. Philomena College, India

Keywords

Algorithmic Fairness, HR Analytics, Trust in Artificial Intelligence, Organizational Justice, Latent Profile Analysis, Digital Readiness, Innovation Propensity