Artificial Intelligence as a Catalyst for Talent Excellence: Evidence from selected IT Companies

Abstract

This study examines the role of AI-driven talent transformation in enhancing recruitment effectiveness, employee retention, and performance optimization within learning-oriented IT and service organizations in India. Using a quantitative, explanatory research design, primary data were collected from 118 employees working in ABB India, TCS, Infosys, Wipro, and IBM India through a structured questionnaire measured on a five-point Likert scale. Data were analyzed using SPSS Version 28, employing descriptive statistics, reliability analysis, correlation, regression, and mediation analysis. The findings reveal that AI-driven recruitment practices (β = 0.39, p < 0.001) and AI-enabled learning and development systems (β = 0.34, p < 0.001) significantly enhance employee retention, explaining 54% of the variance. Further, AI-enabled learning systems strongly influence employee performance optimization (β = 0.46), with the overall model explaining 59% of performance variance. Mediation analysis confirms that employee retention partially mediates the relationship between AI-driven talent practices and performance outcomes. The study underscores the strategic importance of AI-enabled learning ecosystems in fostering sustainable organizational performance.