Advances in Consumer Research
Issue 1 : 429-437
Original Article
AI-Enabled Human Resource Practices and Consumer Financial Trust: Implications for Perceived Firm Value and Purchase Intentions
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1
School of Commerce And Management Studies, Sandip University, Nashik 422213, Maharahstra, India
2
Indian Institute of Management, Mumbai, Maharashtra, India
Abstract

Over the last five years (2020–2024), organizations have increasingly integrated Artificial Intelligence (AI) into Human Resource (HR) practices such as recruitment, performance appraisal, employee engagement analytics, and talent development. This study examines how AI-enabled HR practices influence consumer financial trust, and how such trust subsequently shapes perceived firm value and purchase intentions. Drawing on survey data collected from 642 consumers across service and technology-intensive sectors in India between 2020 and 2024, the study employs structural equation modeling (SEM) to test the proposed relationships. The findings indicate that firms perceived to use AI responsibly and transparently in HR practices report a 28–34% higher level of consumer financial trust compared to firms relying solely on traditional HR systems. Consumer financial trust is found to have a significant positive effect on perceived firm value (β = 0.46, p < 0.001) and purchase intentions (β = 0.39, p < 0.001). Furthermore, perceived firm value partially mediates the relationship between AI-enabled HR practices and purchase intentions, explaining approximately 41% of the total effect. Longitudinal comparisons across the five-year period reveal a steady increase in consumer awareness of AI adoption, with trust-related concerns declining from 52% in 2020 to 31% in 2024, suggesting growing acceptance of AI-driven organizational systems. The study contributes to the emerging literature at the intersection of AI, human resource management, and consumer behavior by demonstrating that AI adoption in internal HR functions extends beyond operational efficiency and significantly influences external stakeholder perceptions. The findings offer important implications for managers, suggesting that ethical AI implementation in HR can serve as a strategic signal enhancing firm value and strengthening consumer purchase intentions in digitally driven markets

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