The Impact of AI-Enabled Green HRM on Organizational Sustainability: The Moderating Role of HR Professionals

Abstract

The rapid integration of artificial intelligence (AI) into human resource management has opened new possibilities for advancing organizational sustainability. This study investigates the impact of AI-enabled Green Human Resource Management (Green HRM) on organizational sustainability within Islamabad's banking sector, proposing a mediated-moderated framework in which Green HRM Practices serve as a mediator and HR Professionals' Oversight functions as a moderator. The study is based on the Ability-Motivation-Opportunity (AMO) theory, Resource Based View (RBV) and the Unified Theory of Acceptance and Use of Technology (UTAUT), exploring how AI complements and extends the strategic function of HR professionals in achieving sustainable results. A quantitative cross-sectional design was used and primary data was collected from 300 HR professionals and managers of commercial, Islamic and microfinance banks in Islamabad using structured likert scale questionnaires. IBM SPSS 26.0 and SmartPLS 4.0 were used for the data analysis, which included regression analysis, bootstrapped mediation (PROCESS Model 4), and hierarchical moderation (PROCESS Model 1). Results confirmed all three hypotheses. AI in HRM positively predicts Green HRM Practices (β = .561, p < .001), which in turn significantly enhances Organizational Sustainability (β = .547, p < .001). Green HRM partially mediates the AI-to-sustainability relationship (indirect effect = .241; 95% CI [.173, .319]), accounting for approximately 55% of the total effect. Moreover, HR Professionals' Oversight significantly moderates the Green HRM–Sustainability relationship (β = .198, p = .001), with high oversight yielding substantially stronger sustainability outcomes than low oversight. These findings establish a compelling empirical case for a human-AI symbiosis model in sustainable HRM.