AI Strategy in Healthcare CHRM: Analyzing the Influence Organization Effective Performance Evidence from the Private Hospitals of Lahore Pakistan

Abstract

Background: The advent of Artificial Intelligence (AI) within organizational frameworks, particularly in the realm of Human Resource Management (HRM), has initiated a transformative shift in operational efficiencies and strategies across various sectors. This integration aims to leverage AI's capabilities to augment human decision-making, enhance operational efficiency, and foster a culture of innovation within organizations. Despite the potential benefits, the practical application and tangible impact of AI strategies on organizational effectiveness remain areas of significant academic and practical interest. Objective: This study aimed to investigate the influence of AI strategies and creativity oriented HRM practices on organizational effective performance. It sought to explore the synergistic relationship between AI implementation and innovative HR practices, and their collective impact on enhancing organizational efficiency and performance metrics. Methods: Employing a cross-sectional survey design, the study collected data from employees working in private hospitals in Lahore, Pakistan. A total of 144 valid responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between AI strategy implementation, creativity-oriented HRM practices, and organizational effective performance. Reliability and validity of the constructs were evaluated through Cronbach's alpha, composite reliability, and average variance extracted (AVE) measures. Results: The findings revealed that AI strategy implementation (Cronbach's alpha = 0.942, AVE = 0.611) and creativity oriented HRM practices (Cronbach's alpha = 0.932, AVE = 0.585) were both significantly associated with enhanced organizational effective performance (Cronbach's alpha = 0.932, AVE = 0.533). The path analysis indicated strong positive relationships between AI strategies and creativity-oriented HRM practices (β = 0.688, p < 0.001), between AI strategies and organizational performance (β = 0.228, p = 0.004), and between creativity-oriented HRM practices and organizational performance (β = 0.597, p < 0.001). The model explained 59% of the variance in organizational effective performance. Conclusion: The study concludes that the strategic integration of AI within HRM frameworks significantly contributes to organizational effectiveness. Emphasizing creativity-oriented HRM practices in conjunction with AI strategies can lead to substantial improvements in organizational performance. These findings underscore the importance of a strategic approach to AI integration in HRM, highlighting the need for organizations to foster environments that promote innovation and creativity.