THE EFFECTS OF ARTIFICIAL INTELLIGENCE (AI) ON EMPLOYEE EFFICIENCY IN ABU DHABI’S INSURANCE COMPANIES

Abstract

The purpose of this research was to determine the effect of ease of use of AI (EU-AI); usefulness of AI tools (U-AI) and actual use of AI (AU-AI) on employee efficiency in insurance companies Abu Dhabi. This study employed a quantitative method. Data were collected from a sample of 370 employees who are working in insurance companies “Abu Dhabi National Insurance Company (ADNIC), Daman Insurance Company, and THIQA Insurance Company using face-to-face questionnaire. To analyses the data, descriptive analysis and partial least squares structural equation modeling (PLS-SEM) were used. The results indicated that AU-AI, U-AI and EU-AI have a significant impact on Employee Efficiency (EE). Specifically, AU-AI has (β = 0.266, t-value = 3.108, p = 0.000), while EU-AI has (β = 0.578, t-value = 6.754, p-value = 0.000). Additionally, EU-AI acts as a mediator in the relationships between AU-AI and EE (β = 0.458, t-value = 6.398, p-value= 0.000) and between U-AI and EE (β = 0.085, t-value = 2.529, p-value = 0.000).  Furthermore, the AU-AI has a significant favourable effect on EU-AI (β=0.791, t-value = 23.552, p-value=0.000), and U-AI has an effect on EU-AI (β=0.147, t-value = 2.903, p-value=0.000). This finding indicating that employees who find AI tools easy to use tend to be more efficient in their work. In conclusion, these findings highlight the importance of artificial intelligence in enhancing employees' efficiency within the organization.