This study intends to explore the determinants of AI adoption and its impact on HRM effectiveness in Tanzanian medium enterprises (MEs). With a focus on providing insights for HR professionals and decision-makers, data from 185 respondents comprising HR professionals, IT professionals, and CEOs who have already adopted AI was analyzed using PLS-SEM, where factors of Relative advantage, Complexity, Compatibility, Security/Privacy, Top management, Organisation readiness, Competitive pressure, External support and Government support were tested to the adoption of AI. Results highlight relative advantage, compatibility, and competitive pressure as key drivers of AI adoption in Tanzania’s context, subsequently enhancing HR systems’ effectiveness. The study bridges the existing gaps and offers recommendations for AI integration into HRM practices. Implications for managers and solution providers were discussed to facilitate a better understanding of the determinants influencing the adoption process within Tanzanian MEs. The study underlies the theoretical understanding of AI adoption by utilizing the TOE model and incorporating technological, organizational, and environmental factors. This study recommends future exploration of additional factors and including a larger sample to enhance the universality of the results.
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