Generative AI Adoption and Employee Productivity: The Influence of AI Competence

Abstract

The study used a quantitative and cross-sectional research design to explore the relationship between the adoption of Generative AI and its impact on employee productivity, and how AI competence plays a role in that relationship. The study focused on employees in organisations that used generative AI tools such as AI writing assistance, data analysis, customer-service systems or productivity applications. The respondents were selected using purposive sampling, which gave 165 valid responses from the sample population that had first-hand experience of using generative AI in their work. A structured questionnaire on a 5-point Likert scale was used to collect data, the three questions for generative AI adoption focused on the frequency and extent of using AI tools, AI competence was measured by the ability to understand, operate, evaluate and effectively use the AI-generated outputs and employee productivity was measured according to how efficiently they do their tasks, the quality of their work and whether they reached the objectives assigned to them. Data was analysed using SPSS, and descriptive statistics, reliability analysis, Pearson correlation and exploratory factor analysis were conducted to identify the effect of the generative AI adoption on the productivity of employees, followed by the hierarchical moderated multiple regression, which was used to examine whether the AI competence enhanced the relationship between AI adoption and employee productivity, and whether the demographic characteristics were able to explain the result of the relationships between the variables, was conducted. Three-factor structure was confirmed using exploratory factor analysis and internal consistency was satisfactory for all constructs. Both the adoption of generative AI and AI competence significantly and positively correlated with employee productivity. After controlling for demographics, the results of hierarchical moderated regression indicated that generative AI adoption significantly predicted employee productivity, and that the interaction between generative AI adoption and AI competence was significant and positive, suggesting that the relationship between generative AI adoption and employee productivity was significantly stronger amongst employees with higher AI competence. The results indicate that intentional competence-building efforts need to be part of AI-related organizational investments to maximize productivity benefits from the use of generative AI.