AI-Driven HRM and Employee Well-Being in a Multigenerational Workforce: The Moderating Role of Diversity, Equity, and Inclusion

Abstract

This study aims to examine the effect of AI-driven human resource management (AI-driven HRM) on multigenerational employee well-being, assess the moderating role of diversity, equity, and inclusion (DEI), and identify differences in these relationships across Generations X, Y, and Z. This quantitative study surveyed 400 industrial employees in Salatiga, Indonesia, comprising 118 Generation X, 144 Generation Y, and 138 Generation Z respondents. Data were collected using a five-point Likert questionnaire and analyzed using Partial Least Squares Structural Equation Modeling, moderation analysis, and Multi-Group Analysis (MGA). The results show that AI-driven HRM has a positive and significant effect on multigenerational employee well-being (β = 0.383; p < 0.001) and the model explains 61.5% of its variance. DEI significantly strengthens the relationship between AI-driven HRM and employee well-being (β = 0.190; p < 0.001). MGA confirms significant generational differences, with the direct effect weakest in Generation X (β = 0.21) and strongest in Generation Z (β = 0.52), while the moderating effect of DEI is also strongest in Generation Z. The study concludes that AI-driven HRM effectiveness depends on inclusive organizational conditions and generational interpretation, highlighting the importance of human-centered and equitable AI implementation.