IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 Integrity of artificial intelligence in recruitment on employee performance: the mediating role of organizational values Nuraini Universitas Wira Bhakti. Makassar. Indonesia hjnurainir@wirabhaktimakassar. https://doi. org/10. 46367/iqtishaduna. Received: Mar 26, 2025. Revised: May 23, 2025. Accepted: May 31, 2025. Published: Jun 26, 2025. Abstract Purpose Ae This research examines the effect of artificial intelligence (AI) integrity in the recruitment system on employee performance in state-owned enterprises, considering the role of organizational values alignment as a mediating variable. Method Ae This study uses a quantitative approach and a proportional stratified random sampling technique. The population consists of employees at one of the state-owned enterprises in Makassar recruited through an artificial intelligence-based system. The research sample consists of 144 respondents, who are permanent employees who have followed the AI-based recruitment The data used was primary data, which was collected through the distribution of questionnaires, which had previously been tested for validity and reliability, and through direct observation of the AI-based recruitment process. The method used to analyze the data in this study is structural equation modeling (SEM) with the partial least square (PLS) Data processing is done through SmartPLS version 3 software. Findings Ae The results showed that the integrity of artificial intelligence in the recruitment process positively affects employee performance. Organizational values are proven to mediate the relationship between the use of artificial intelligence in recruitment and employee performance and directly positively affect employee performance. Implications Ae Theoretically, these findings enrich the recruitment and selection theory studies, especially by integrating the concept of artificial intelligence integrity and the role of organizational values. Practically, the results of this study contribute applicable guidelines for organizations in designing and implementing artificial intelligence-based recruitment systems effectively. Keywords: artificial intelligence, recruitment, organizational values, employee performance. Introduction Effective employee recruitment is key for businesses to survive and thrive in digital Along with the development of digital technology, industry, and increasing demands for public satisfaction, organizations must adapt quickly. Flexibility is a must for every organization or agency to adjust to these technological changes, where human resources (HR) plays an important role as a driver and implementer of the transformation needed to meet the demands of the times (Goh et al. The recruitment process has a crucial role in determining the quality of employee performance, which directly impacts overall organizational performance. If this process is not optimally designed, the results will likely not be maximized, so the company risks failing to recruit a workforce that suits its needs (Meshram 2. Employee performance is a significant challenge globally and Studies by Gabriel and Aguinis . reveal that 76% of global workers pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 experience burnout, while a report cited by Nosike. Nosike, and Ojobor . indicates that 54% of the workforce will require significant digital skills upgrades by 2025. Research Kharroubi . identified that 63% of global managers felt unprepared to manage modern teams effectively. One recommended solution is implementing AI technology that correlates with improved management performance. Large business capacity makes state-owned enterprises an important asset for the state in contributing revenue. However, suboptimal business management often causes stateowned enterprises to become a burden on the state because the government must bear operational costs sourced from state capital participation (Yadav et al. Intelligent technology in the workforce selection process creates anxiety about the lack of clarity in decision-making and digital skills inequality among employees, which could decrease In addition, a mismatch between the values of artificial intelligence and corporate culture could reduce employee satisfaction and productivity (Ghedabna et al. Artificial intelligence technology has shown significant progress in the past ten years alongside advances in the information technology and communications sector (Rahma and Mekimah The rapid development of information technology opens up various opportunities and challenges for companies. Some potential opportunities include expanding market access, making it easier to obtain more diverse resources, and increasing opportunities for alliances and cooperation with international companies (T. Ahmad et al. Artificial intelligence is increasingly being applied in HR management to support recruitment and employee performance evaluation. The application of AI increases efficiency and helps companies make more optimal strategic decisions in HR management (Priyono and Idris 2. AI can also select each applicant's file based on the character, personality, experience, and achievements of each applicant with the criteria and standards of the company (Albassam 2. Research conducted by Luhana. Memon, and Khan . explains that artificial intelligence affects employee performance because its presence affects the ability of employees to achieve optimal quality and quantity of work results. Studies by Rickardo and Meiriele . Harikrishnan . also show that AI significantly influences workers' Therefore, artificial intelligence is one of the innovations that need to be improved and utilized to improve the competence of human resources towards Indonesia's increasingly fast-growing digital transformation era by utilizing technological advances to increase productivity and improve competitiveness (Rashid and Kausik 2. Among the latest innovations in this field. AI offers the ability to learn and adapt processes in employee Previous research has not explored the use of artificial intelligence in employee recruitment, so further studies are needed to assess its potential and impact. Furthermore, another factor that can improve employee performance is the role of organizational values. Companies need to achieve the easiest way to plan within the company and increase the value and welfare of company owners (Ibrahim et al. Research conducted by Dorkenoo et al. regarding organizational values significantly influences employee performance. Thus, employee performance is important in influencing a company's organizational values. The results of the literature study show a significant relationship between positive organizational culture and employee performance (Paais and Pattiruhu A strong organizational culture, which reflects values, norms, beliefs, and behaviors that support improved performance, is closely related to increased productivity, work quality, job satisfaction, organizational commitment, and employee retention (Aryani and Widodo The analysis shows that organizational values positively influence employee Employees who work in organizations that uphold these values tend to feel more motivated and committed to achieving organizational goals. Therefore, the values in the organization can be one of the important elements that encourage improved employee pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 However, research related to the mediating role of organizational values on factors influencing employee performance has rarely been studied before. The novelty of this research lies in the role of organizational values as a mediating variable that explains the mechanism between AI integrity in recruitment and state-owned enterprises' employee performance. This research uniquely offers the perspective that an AI system with integrity in the recruitment process creates values between employees and the organization, which becomes a driving factor for improved employee performance. This theoretical model provides a new understanding of the causal pathways linking recruitment AI technology to employee performance outcomes in state-owned enterprises characterized by different organizational values. This study aims to evaluate the impact of artificial intelligence integrity in the hiring process on performance outcomes of state-owned enterprise employees in Makassar city through the role of organizational values. This research is important because state-owned enterprises in Makassar are undergoing digital transformation in HR management. However, no research has examined the effectiveness of artificial intelligence recruitment in the local context. As an economic hub in Eastern Indonesia. Makassar has unique work culture characteristics and organizational values, so understanding value alignment through recruitment technology is important to improve state-owned enterprises' competitiveness in the region. Literature review Technology acceptance model (TAM) Various measures have been taken to estimate employee response to technologydeveloped products or services based on prominent theories (Kim. Kim, and Han 2. TAM theory explains the perceived ease of use in facilitating the development of good behavior and increasing behavioral intentions towards digital technology (Korkmaz et al. Many researchers commonly utilize TAM to investigate individuals' views on using various This approach includes key elements that assess users' readiness to interact with technology, namely perceived usefulness, perceived usefulness, and attitudes (Camilleri and Falzon 2. The importance of information technology in technology deployment and the actual use of information systems in the workplace has become an important area of focus (Wu et al. TAM provides a structure that helps us understand how views on the usefulness and ease of AI systems are affected by their implementation in the recruitment AI integrity can enhance perceived usefulness by ensuring accurate and fair recruitment decisions (Schaltegger and Wagner 2. Meanwhile, organizational value congruence serves as a variable that strengthens the relationship between technology acceptance and employee performance, which aligns with the attitude toward use in TAM (Metallo et al. Thus. TAM helps explain how the acceptance of AI technology with integrity, aligned with organizational values, can optimize the recruitment process and improve the performance of state-owned enterprises employees. Herzberg's two-factor theory Herzberg's two-factor or hygiene motivation theory offers a solid framework for understanding what influences employee satisfaction and retention (Raj 2. Since the advent of the two-factor theory, various empirical analyses have tested it in various industries and the context of broad application (Koncar et al. Based on Herzberg's theory, motivator and hygiene factors are two groups of factors that influence satisfaction and dissatisfaction in work. Motivating factors that can trigger job satisfaction and employee motivation include achievement, recognition of one's work, responsibility, and growth opportunities (Kumari et al. Meanwhile, hygiene factors include salary, work pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 environment, and company policies, and interpersonal relationships are not directly motivating, but if not met, can lead to dissatisfaction (Srivastava and Srivastav 2. Employee performance Employee performance is a crucial element in maintaining a business's competitive advantage and a measure of the company's success (H. Ahmad et al. The expertise and skills of each employee play a significant role in supporting the smooth operation of the company in order to realize the goals that have been proclaimed. A company's success is determined by its workforce quality (Ibrahim et al. Optimal performance in an organization can be assessed by comparing employee work results with the standards set by the company because the organization's success depends on employee performance (Xu and Landicho 2. Companies or organizations must monitor employee performance to assess how much they meet the job demands and contribute to the organization. Performance evaluation also helps identify employee strengths and weaknesses and determine training and development needs (Vuong and Nguyen 2. Employee performance not only serves as the basis for decision-making regarding promotions or salary setting for the company. More than that, employee performance can also be a motivating factor, helping to correct performance declines and prevent further decline (Gagny et al. Employee performance reflects their ability to complete the assigned tasks, and the results can show the extent of their contribution to the company (Wahyuningsih and Hasyim 2. Employee performance dimensions and indicators include work quality, time utilization, and commitment (Yu and Regua 2. Artificial intelligence (AI) Artificial intelligence, often abbreviated as AI, is the ability to understand outside information in a structured way and assess various jobs through varied customizations (Huang and Rust 2. Digital technology and artificial intelligence play an important role in supporting renewable energy development, including improving the management and operation of renewable resources, stabilizing electricity infrastructure monitoring, ensuring system security, and opening up opportunities to form new markets (Meshram 2. Government agencies often use a variety of artificial intelligence applications (Medaglia. Garcia, and Pardo 2. Some of the common ones are AI-managed software for knowledge, systems for process automation, virtual agents such as chatbots, predictive analytics and data visualization, identity analytics, brilliant robots and autonomous systems, recommendation systems, intelligent digital assistants, voice analytics, and security with cognitive approaches analysis and threat intelligence (Yigitcanlar et al. Organization value Organizations often face difficulties maintaining a sustainable workforce and exceptionally talented employees (Bankins et al. Companies can attract and retain competent and dedicated employees by implementing effective HR management practices. Employee commitment to the organization is seen as a significant factor in ensuring an organization's viability, growth, profitability and sustainability (Sundari et al. Employee organizational values refer to the beliefs, principles, and standards shared by individuals in the work environment, which align with the company's culture and goals (Secchi and Camuffo 2. These values include work ethic, integrity, loyalty, collaboration, innovation, and commitment to achieving the organization's vision (Yigitcanlar et al. Employees who align with organizational values tend to be more motivated and productive and contribute positively to the company's success (Jia et al. The indicators of organizational values are value alignment, organizational commitment, employee pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 engagement, performance productivity, communication and collaboration (Ibrahim et al. Employee recruitment Recruitment is the stage where the organization seeks, identifies, and takes prospective employees to be part of the team (Aswathy and Anusree 2. HR recruitment is a crucial aspect of organizational management that involves selecting qualified individuals to fill specific positions. In the digital era, the recruitment and selection process has been digitized, using artificial intelligence technology to optimize efficiency and effectiveness in the recruitment process (Meshram 2023. Gaur and Chatterjee 2. Recruitment is one of the crucial elements in human resource management, as it is the initial stage of finding suitable employees to fill available positions (Abbasi et al. This is all the more important given the limited availability of human resources. The number of available workers is relatively small, and many companies are experiencing a shortage of employees. As a result, companies must compete to attract the best candidates from the number of candidates available (Nascimento. Marcon, and Neto 2. Research by Phillip. Ishaq, and Kola . suggests that employee recruitment factors determine the number and qualifications of candidates, fill out application form data, plan intelligence tests, plan aptitude tests, and interview tests. Hypothesis development Recruitment is a process of searching and finding or attracting someone applying for a job so that later can be employed in an organization or company (Virigineni and Rao 2017. Alzoubi 2. The technology acceptance model (TAM) explains how individuals accept and utilize the latest technology by considering the ease and benefits obtained. In artificial intelligence. TAM plays a role in understanding how employees integrate AI into their daily work activities (Malatji. Eck, and Zuva 2. Artificial intelligence (AI) refers to computer systems' skills in mimicking human expertise. This includes learning, solving problems, and adapting to situations. A study by Sundari et al. shows that AI technology can help employees work more efficiently by automating routine tasks, providing accurate recommendations, and speeding up decision-making. H1: AI integrity has a positive effect on employee performance. The application of artificial intelligence in a recruitment process positively affects employee performance through organizational value as an intermediary variable. Based on TAM theory. AI can boost employee performance if they perceive the technology as easy to implement and use, which benefits carrying out work tasks (Meshram 2. Using AI in recruitment can increase the objectivity of selection, ensure the fit between candidates and organizational culture, and speed up the recruitment process (Chyrif. Arynega, and Synchez AI can increase employee loyalty, engagement, and motivation by selecting candidates with values aligned with the organization (Benabou. Touhami, and Demraoui 2. Ultimately, the value congruence between employees and the organization facilitated by AI will result in improved overall employee performance (Dabbous. Barakat, and Sayegh 2. Therefore, the more optimal the application of AI in the recruitment process based on organizational values, the more likely employee performance in the company will increase. H2: organizational values can mediate the influence of AI integrity which has a positive effect on employee performance. An organization is a collection of individuals who work together to achieve goals that are difficult to achieve individually (Chafi. Hultberg, and Bozic Yams 2. The organization's members work in groups according to their field of duty. therefore, this group plays a vital role in illustrating its overall achievements (Stratone et al. Values in an organization have a good effect on employee performance because they act as a driving element by the pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 two-factor theory proposed by Herzberg, which ultimately adds to job satisfaction and improves employee performance (Raj 2. Strong organizational values aligned with employee perceptions can increase a sense of belonging, motivation, and commitment to work (Murray and Holmes 2. When employees feel that the company's values align with theirs, they tend to be more motivated to work optimally, show higher productivity levels, and contribute positively to organizational goals. Therefore, the stronger the organizational values implemented and internalized by employees, the higher their performance in the work environment (Chatzopoulou. Manolopoulos, and Agapitou 2. Research by Alawamleh et . suggests that organization significantly affects employee performance. H3: an organization's values have a positive effect on employee performance. Artificial intelligence (X. Employee (Y) Organization value (Z) Figure 1 research framework Method This study uses a quantitative approach to test the causal relationship between artificial intelligence integrity in recruitment, organizational value congruence, and the performance of state-owned enterprise employees in Makassar city. This study will use primary data. primary data is obtained through a validated structured questionnaire and direct observation of the AI-based recruitment process. The population in this study consisted of all employees recruited using an artificial intelligence (AI)-based system in the last three years, the number of which is unknown. A sample of 144 employees was selected using the proportional stratified random sampling technique based on 2 years of work from PT. Pertamina 78 respondents and PT. Telkom 66 respondents. The two companies were chosen as research locations in Makassar city because they are both large state-owned companies with good and organized work systems. Both companies also have offices in Makassar, which makes them easy to reach. In addition, both play an important role in supporting the regional The available data is complete, and the company usually supports research activities, making it the correct location to collect data. The research variables consist of artificial intelligence as an independent variable, employee performance as a dependent variable, and organizational values as a mediating variable (Table . Data analysis was conducted using structural equation modeling (SEM) to test the mediating role of organizational value congruence in the relationship between AI integrity in the recruitment process and employee performance. Instrument validity and reliability were tested through confirmatory factor analysis and Cronbach's alpha testing to ensure the reliability of the research results. Data analysis was carried out with the assistance of SmartPLS software SmartPLS 3 was chosen for its ability to evaluate the measurement model . uter mode. and structural model . nner mode. (Edeh. Lo, and Khojasteh 2. pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 Table 1 operational variables Variables Artificial Employee Organizational Indicators Problem solving Adaptability Natural language Process Predictive (Freitas et al. Quality of work Timeliness Organizational (Yandi and Havidz Policy values Work rule values Work procedure Work ethic Communication Collaboration (Sutoro et al 2. Statements AI improves accuracy in solving work AI can adapt to changing work needs AI helps more efficient communication between humans and systems AI helps perform routine tasks automatically AI provides recommendations that are based on accurate predictions Scale Likert Work is done with attention to detail and Tasks are completed within the specified Employees maintain the reputation and good name of the organization in every action. Likert Employees demonstrate adherence to organizational policy values Employees understand and comply with applicable work rules Work procedures are carried out in accordance with organizational values Employees always try to give the best results in every task The feedback given is constructive and Mutual support and information sharing between work teams Likert Results and discussion Respondent characteristics The characteristics of the respondents were obtained through the questionnaires given, which contained information about the gender, age, and education level of the respondents, as shown in Table 2. Table 2 respondent characteristics Characteristics Gender Age range Education level Classification Male Female < 20 years 20-30 years 31-50 years Senior high school BachelorAos degree MasterAos degree Quantity Percentage Source: primary data . rocessed, 2. Table 2 shows differences in the respondents' characteristics, which can be grouped into three parts. First, the female gender category has 61 respondents . 36%), and 83 pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 64%) are male. Second, age category < 20 years 41 respondents . 47%), age 20-30 years 53 respondents . 81%), age 31-50 years 50 respondents . 72%). Third, the education category senior high school 12 respondents . 33%), bachelor's degree 119 respondents . 64%) and master's degree 13 . 03%). Bachelor's degree education level dominates respondents. Validity and reliability test Discriminant validity testing evaluates the correlation between indicators of different A construct is considered to predict its block well if its correlation with measurement items is higher than with other constructs. Structural validity is indicated by a loading factor value >0. 70, although for initial research a value of 0. 60 is still acceptable. Composite reliability is used in evaluating latent variable coefficients, where there are two main criteria, namely composite reliability and Cronbach's alpha, both of which are above 70 to be considered valid and reliable. In addition, the minimum average variance extracted (AVE) value is 0. Table 3 validity and reability results Variables Indicators Artificial intelligence Organization value Employee performance Outer Loading AVE CronbachAos Alpha Composite Reability Source: primary data . rocessed, 2. Table 3 shows that the overall research data meets the validity and reliability Convergent validity, which is indicated by the value of outer loadings on each variable indicator, is above 0. 7, by the convergent validity criteria. In addition, discriminant validity, indicated by the AVE value, also meets the set standard of above 0. Therefore, the validity test provided satisfactory results overall (Memon et al. Similarly, the Cronbach's alpha value also met the 0. 6 threshold set. R-square test An R-square result of 0. 75 is classified as strong, an R-square of 0. 5 indicates a moderate model and an R-square of only 0. 25 indicates that the model is weak. The R-square result shows a figure of 0. 782, meaning that employee performance is at a strong model level because it is greater than 0. Thus. AI and organization value simultaneously have an influence of 78. 2% on employee performance. the remaining 21. 8% is caused by other factors not included in the study. pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 Hypothesis testing Hypothesis testing uses SmartPLS software by performing the SmartPLS resampling bootstrapping method and testing the significance of accepting the hypothesis with the original sample requirement as a positive or negative effect, t-statistics > 1. 96, and p-value < Table 4 shows that artificial intelligence Ie employee performance with the original sample value = 0. 351, t-statistics = 9. 488 > 1. 96 and p-values = 0. 000 < 0. This means that artificial intelligence positively and significantly affects employee performance (H1 is Then, artificial intelligence Ie organization value Ie employee performance with value of original sample = 0. 169, t-statistics = 2. 342 > 1. 96 and p-values = 0. 021 < 0. This means that artificial intelligence positively and significantly affects employee performance through organizational values (H2 is accepte. Additionally, organization value Ie employee performance with original sample value = 0. 201, t-statistics = 2. 470 > 1. 96 and p-values = 015 < 0. This means that organizational values positively and significantly affect employee performance (H3 is accepte. Table 4 hypothesis results Hypothesis H1: Artificial intelligence (AI) Ie employee H2: Artificial intelligence (AI) Ie organization value Ie employee performance H3: Organization value Ie employee performance Original sample T-statistics P-values Source: primary data . rocessed, 2. The effect of AI in employee recruitment on employee performance The research findings show that utilizing artificial intelligence in the hiring process positively affects employee performance. This impact is supported by AI's ability to select candidates objectively, quickly, and data-based, resulting in a workforce more aligned with organizational needs. In the technology acceptance model (TAM) framework, the effectiveness of artificial intelligence is determined by two main factors, namely perceived benefits and perceived ease of use, which are also influenced by the ability of employees to adapt to the User acceptance of AI in recruitment is crucial to its effectiveness. If AI is perceived as useful and easy to use, it is more likely to be widely adopted. Effective use of AI in recruitment can improve the quality of recruitment, which in turn contributes to improved employee performance (Chyrif. Arynega, and Synchez 2. The research findings show that all artificial intelligence indicators significantly influence employee performance indicators, including work quality, timeliness, and commitment to the organization. Process automation has the most significant impact among the five indicators tested, as it increases efficiency and reduces the burden of routine tasks. addition, the ability to problem-solve and predictive analysis also supports quick and precise decision-making. Adaptability provides flexibility in job execution, while natural language processing features facilitate interaction between employees and the system. Effective utilization of artificial intelligence is proven to improve employee performance (Yigitcanlar et The results of this study align with Meshram . , who states that artificial intelligence significantly impacts the digitization process and human resource productivity in several sectors. Research Albassam . also explained that artificial intelligence helps the recruitment process by making it easier to automatically distribute vacancies to various platforms, reach more candidates, and save time, effort, and costs. However, human recruiters are still needed at the final selection stage because AI has limitations in understanding language and culture. pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 Research findings regarding the effect of artificial intelligence on employee performance show that the utilization of AI technology contributes to increased efficiency, productivity, and accuracy in task execution. The implications of these results indicate the need for companies to strategically encourage AI implementation, accompanied by adequate training, so that employees can adapt to technological developments. AI in recruitment impacts the efficiency and quality of selection and has significant implications for organizational structure. HR roles, technology policies, and business ethics. Therefore, organizations must prepare a holistic technical, human, and policy implementation strategy. However, the integration of AI should not be intended to replace the role of humans rather, it should be a supporting tool that strengthens employee work capabilities to achieve more optimal performance. The effect of AI in employee recruitment on employee performance through organizational value The research findings show that the application of artificial intelligence in the recruitment process positively and significantly affects employee performance through organizational values. This indicates that organizational values play a mediating role. This means that AI helps select not only qualified candidates but also those who are aligned with the organization's values, and this is what ultimately improves employee performance. According to the view of the technology acceptance model (TAM), the use of technology is strongly influenced by two important elements, namely perceived usefulness and perceived ease of use. Acceptance of AI technology by HR users and managers is the key to AI's success in influencing employee performance through the role of organizational values. The greater the perception of the usefulness and ease of AI, the higher its acceptance and use, and the greater the opportunity for the organization to get value-aligned employees, which, in turn, contributes significantly to employee performance. When AI systems in recruitment are perceived as useful and easy to use by both organizations and candidates, the technology will be more easily accepted and effectively implemented (Liu and Ye 2. Artificial intelligence allows a more objective, fast, and accurate selection process in assessing the competence and suitability of prospective employees with organizational needs. With data-driven algorithms, artificial intelligence helps identify candidates with skills and values that align with the company's culture, increasing recruitment effectiveness and reducing employee turnover rates (John and Hajam 2. Furthermore, this study shows that values within the organization are highly influential in improving the relationship between artificial intelligence utilization in the hiring process and employee performance. When AI-based selection processes can assess candidates' fit with organizational values, employees tend to have higher levels of loyalty and work motivation (Evi and Tine 2. This results in increased productivity, work quality, and job satisfaction. Thus, this research is an application of artificial intelligence in the employee recruitment process in Makassar city state-owned enterprises that improves selection efficiency and contributes positively and significantly to employee performance by strengthening organizational values. Therefore, it is recommended that companies continue to develop artificial intelligence systems in recruitment while still paying attention to aspects of corporate values and culture to create a harmonious and high-performing work environment. Research Sindhu and Dharmendra . explained that technological advances bring convenience to companies' work activities. This condition affects the utilization of artificial intelligence and increases the ability of employees to achieve optimal work results, both in terms of quality and quantity. Artificial intelligence in recruitment helps companies select more precise and efficient candidates (T. Ahmad et al. However, alignment with organizational values remains important for hired employees to deliver optimal performance. Organizational values ensure that employees are technically competent and culturally aligned, pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 which ultimately influences their work outcomes in a good way. As outlined in the study by Yu and Regua . , strong organizational values positively influence employee performance. Based on the results of this study, companies need to leverage AI technology not only for the efficiency of the recruitment process but also as a tool to assess the fit of prospective employees' values with the organizational culture. Applying AI aligned with organizational values can help select more precise candidates and improve adaptation, loyalty, and employee performance (Chyrif. Arynega, and Synchez 2021. Benabou. Touhami, and Demraoui 2. This emphasizes the important role of organizational values as a mediator that amplifies the positive impact of AI on performance. Therefore. AI technology for recruitment must be designed and used strategically by considering the cultural aspects and values of the Companies that only use AI for efficiency without considering values tend to fail to achieve optimal long-term performance. The effect of organizational values on employee performance The research findings show that organizational values positively affect employee Because these values form a work culture that can motivate, direct, and inspire individuals to carry out their responsibilities, this indicates that organizational values reflect beliefs, principles, and norms that guide behavior within the company. Various positive performance indicators will be seen when employees embed and internalized these values. Based on Herzberg's two-factor theory, organizational values are motivating factors that impact intrinsic job satisfaction. Within the framework of this theory, factors such as achievement, recognition, responsibility, and meaning of work are key drivers that can increase employee motivation and performance (Ozsoy 2. This means that when organizational values are implemented realistically, it can increase job satisfaction, motivate employees internally, and encourage full involvement and contribution to work. Organizations that instill integrity, innovation, teamwork, and results orientation establish a conducive work environment where employees feel valued and encouraged to make optimal contributions. When organizational values align with employees' values, they will be more committed to work and loyal to the company (Raza. Khan, and Hakim 2. This results in increased productivity, quality of work, and higher job satisfaction. In addition, organizations that uphold transparency and work ethics also encourage employees to work more honestly and responsibly (Sendlhofer and Tolstoy 2. Conversely, if organizational values are not consistently applied or conflict with employee expectations, this can demotivate, increase stress levels, and lead to high employee turnover. Therefore, companies need to ensure that organizational values are implemented in policies and communications, and practicing daily management can build a supportive work atmosphere to improve employee performance. This finding is in accordance with Nzuva and Kimanzi . , which states that organizational values significantly improve employee performance. This finding implies that the stronger the internalization of organizational values by employees, the higher their performance level. This shows the importance of management's role in consistently instilling and communicating organizational values to all employees. These values shape work behavior that is aligned with the organization's vision, increase motivation and job satisfaction, encourage teamwork loyalty and effectiveness, and help the organization achieve its goals sustainably, which positively affects individual work outcomes and the organization. Conclusions Based on the research, implementing AI in the recruitment process can make a real contribution to employee performance. This helps select the right candidates and speed up the selection process to create more competent and productive employees, helping to pISSN 2303-3568 eISSN 2684-8228 https://ejournal. id/index. php/iqtishaduna IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita June 2025. Vol. No. 1: 294-310 improve business efficiency, which in recruitment has a positive impact on employee performance by emphasizing the relevance of organizational values. This helps select competent candidates who fit the company culture well, thereby increasing motivation, loyalty, and productivity. In addition to improving selection effectiveness, anyone can consolidate organizational values and support employee performance. Research shows that organizational values have a positive effect on employee performance. Value congruence between employees and the company drives motivation, loyalty, and commitment, creating a harmonious and productive work environment that improves performance and contributes to company goals. Theoretically, this research enriches human resource management studies by integrating the concepts of artificial intelligence integrity and organizational value congruence in the context of recruitment. Especially in public businesses. These results confirm the importance of organizational values as an intermediary mediation in the relationship between AI use and employee performance. The results of this study provide advice to state-owned companies on how to implement Ethia and take responsibility for the recruitment process. By maintaining the integrity of AI and ensuring value alignment between candidates and organizations, companies can improve selection effectiveness and encourage more optimal employee performance. This study has several limitations, including sample coverage limited to employees of certain state-owned enterprises, so the results may not necessarily be generalized to all stateowned enterprises or other sectors. In addition, the quantitative approach has not explored employee perceptions of AI integrity and organizational values in depth. Therefore, future research should expand the scope of respondents across sectors and use a qualitative or mixed approach to gain a more comprehensive understanding. It is also recommended to explore other factors, such as AI ethics and leadership, that may influence the relationship between AI-based recruitment and employee performance. References