Abstract: The adoption of Artificial Intelligence (AI) in Human Resource practices within the construction sector is relatively new, bringing numerous changes to operations that transform business processes, especially in companies that have been developing and integrating AI into their daily operations. However, the extent to which AI enhances employee productivity in this sector remains unclear. This paper examines the impact of AI adoption on employee productivity. The variables considered include AI adoption and mediating factors such as upskilling and employee adaptability. Using a quantitative approach, the study samples 278 employees from top tier construction companies in Indonesia. The results show that AI adoption does not directly impact employee productivity in the construction sector; however, it significantly influences productivity through employee adaptability as the primary mediating variable. Conversely, AI adoption through upskilling has no significant impact on employee productivity. The results suggest that construction organizations seeking to leverage the adoption of Artificial Intelligence for enhanced productivity should prioritize developing employee adaptability. Organizational leaders and HR professionals should focus on interventions that cultivate flexibility, openness to change, and problem-solving capacity among workers. This research contributes to the literature by reinforcing the role of human factors in Artificial Intelligence integration.

Keywords: Artificial Intelligence, Artificial Intelligence Adoption, Human Resource, Employee Productivity, Upskilling, Employee Adaptability, Regression Analysis

Pages: 55-61

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