Artificial intelligence (AI) is increasingly embedded in talent-management practices, yet its long-term workforce value depends on whether AI-enabled HR systems are translated into employee capabilities and sustainable performance. This study examines the associations among AI-Enabled Talent Management (AETM), Employee Capability Development (ECD), Trust in AI (TIA), and Sustainable Employee Performance (SEP) in Indonesian agroindustry. A quantitative cross-sectional survey was conducted with 255 employees who had experience with AI-supported or digital HR practices. The model was estimated using PLS-SEM in SmartPLS 4 with 5,000 bootstrap resamples. AETM was positively associated with ECD (β = 0.666, t = 18.875, p < 0.001) and SEP (β = 0.132, t = 2.431, p = 0.008), while ECD was positively associated with SEP (β = 0.564, t = 10.976, p < 0.001). The indirect AETM→ECD→SEP pathway was positive (β = 0.375, t = 9.668, p < 0.001), indicating complementary partial mediation. TIA showed a negative direct association with SEP (β = -0.229, t = 4.932, p < 0.001), whereas the ECD×TIA interaction was positive (β = 0.070, t = 1.901, reported p = 0.029). These findings position employee capability development as a central mechanism linking AI-enabled talent practices to sustainable performance and show that trust should be interpreted as a contextual condition rather than as uniformly beneficial. The study extends AI-enabled HRM research by integrating capability development, sustainable employee performance, and trust within a single employee-level model in Indonesian agroindustry.
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