Unlocking the AI-Productivity paradox in HR: Qualitative insights across organizational levels

Artificial Intelligence (AI) is widely expected to boost productivity and economic growth. As with other technological innovations, a productivity paradox emerges, stating that productivity falls upon its introduction. Therefore, while organizations consistently augment their investments in AI, they might fall short of significant productivity improvements. This study delves into this productivity paradox using a longitudinal qualitative research design with two waves of data collection. We explored four critical themes: AI’s evolving role in organizations, its tangible effects on HR productivity, the underlying reasons behind the productivity paradox, and its multifaceted impact on the employee, team, and organizational levels. Our findings reveal compelling insights into why increased AI investments may not always translate into immediate productivity gains. In addition to providing a framework outlining the relationship between AI and the productivity paradox in HR operations, the findings offer insightful information that can be extremely helpful to industry practitioners.