Impact of AI-Based Recruitment Tools on Job Acceptance Intentions in the Banking Sector of Islamabad: Moderating Role of Ethical Concerns

Abstract

The rapid digitalization of human resource management has led to the widespread adoption of AI-based recruitment tools in Pakistan's banking sector, particularly in Islamabad. This study investigates the impact of AI-based recruitment tools on job acceptance intentions among job applicants in Islamabad's banking sector, while examining the moderating role of ethical concerns. The research design used in this study is quantitative and cross section because it is based on two theories, namely the TAM. The data was gathered from 300 job applicants who have gone through an AI-driven recruitment process in the last year. A structured questionnaire was used with a 5-point likert scale, and the data were analyzed by regression analysis using SPSS and (PLS-SEM) using SmartPLS. The results support the three hypotheses. The intention to accept a job is strongly influenced by the use of AI-based recruitment tools (β = 0.487, p < 0.001), as the applicants see the use of such technologically advanced recruitment tools as an indicator of the organization's innovation. On the other hand, ethical concerns have a strong negative direct influence on the intention to accept jobs (β = -0.298, p < 0.001). Ethical concerns in particular significantly moderate the link between the use of AI-based recruitment tools and the intention to accept the job (β = -0.221), such that the positive effect of using AI tools becomes less the more it is perceived as being unethical. Model accounts for 60.3% variance in intention to accept a job (R² = 0.603). Overall, the study finds that AI recruitment tools make an organization more attractive, but they are only as effective as the ethical governance, transparency, and trust of applicants