AI And Employee Performance: Unravelling The Influence of AI Literacy, Innovation Capability, And Collaboration

Abstract

This study examines the impact of AI literacy, technological openness, innovation capability, and collaboration with AI on job performance within the Indian IT sector. The primary objective is to assess how these AI-related factors influence employee performance and organizational effectiveness. Using a structured survey, data were collected from 150 IT employees across leading firms, and Structural Equation Modeling (SEM) was employed via AMOS to analyze the hypothesized relationships. The findings reveal that AI literacy and technological openness significantly enhance job performance, with innovation capability and AI collaboration also contributing positively. The study provides empirical support for theoretical models such as the Technology Acceptance Model (TAM) and the Resource-Based View (RBV), reinforcing the importance of AI-related competencies in driving competitive advantage. This research contributes to both theory and practice by highlighting the need for strategic AI training and fostering a culture of technological adaptability to optimize workforce efficiency in AI-driven workplaces.