<![CDATA[Digital transformation encourages organizations to adopt artificial intelligence (AI) and strengthen digital readiness as part of their strategies to improve employee performance. This study aims to examine the effects of AI adoption and digital readiness on employee performance, with digital competence serving as a mediating variable. A quantitative approach was employed, using PLS-SEM to examine the direct and indirect relationships among the variables in the proposed research model. The results indicate that AI adoption and digital readiness have positive and significant effects on both digital competence and employee performance. Digital competence also has a positive and significant effect on employee performance and partially mediates the relationships between AI adoption and employee performance, as well as between digital readiness and employee performance. These findings suggest that AI implementation and organizational readiness to respond to technological change can contribute more effectively to employee performance when supported by adequate digital competence. This study highlights the importance of integrating technology adoption strategies, strengthening digital readiness, and continuously developing employees’ digital competence to enhance performance in an increasingly digitalized work environment.]]>
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