Abstract:
Performance management plays a pivotal role in organizational success by ensuring that
employees contribute effectively towards achieving strategic goals. In recent years, the
incorporation of artificial intelligence (AI) into performance management has emerged as a
transformative trend, providing organizations with new tools to enhance efficiency, objectivity,
and overall effectiveness in evaluating and optimizing employee performance. The specific
objectives of the study were: assessing the impact of AI integration on performance
management, evaluating employee satisfaction within the context of AI-enhanced performance
management, and examining the effectiveness of AI in addressing performance gaps at
Safaricom. The study adopted descriptive research designs. The study targeted 3250 employees,
in (6) departments at safaricom, Kenya. The study used stratified random sampling design to
select (4) departments where 165 employees were selected. Data was collected using a semistructured questionnaire and key informant interview guide. Quantitative data was analyzed
using SPSS version 22.0 software. Inferential statistics in the form of multiple regression and
descriptive statistics were used to analyze the data. Descriptive statistics were presented in tables
and figures. Qualitative data was analyzed using content analysis The analysis revealed a
significant positive association between AI Integration and Performance Management
(Coeff/beta = 0.325, P-Value = 0.045), indicating that each unit increase in AI Integration
corresponds to a 0.325 increase in Performance Management. However, Employee Satisfaction
within AI lacks statistical significance (Coeff/beta = 0.315, P-Value= 0.075). Effectiveness of AI
in addressing performance gaps shows no significance (Coeff/beta = 0.305, P-Value = 0.065).
The study concludes that The Impact of AI Integration on enhanced Performance at Safaricom
reflects overwhelmingly positive perceptions, particularly in optimizing resource allocation and
operational efficiency.
