Purpose This paper aims to examine why many artificial intelligence (AI)-driven HR initiatives struggle to build employee trust and organisational legitimacy, and argues that Cultural Intelligence (CQ) is a critical capability for enabling responsible and effective AI adoption in HR. Design/methodology/approach This study adopts a practitioner-oriented, conceptual approach, integrating insights from emerging research on AI-enabled HRM and governance with practical considerations relevant to HR leaders operating in culturally diverse contexts, particularly in India. Findings While AI enhances efficiency, scalability and decision-making in HR processes, it frequently creates trust deficits due to perceived opacity, bias and lack of cultural sensitivity. Employees evaluate AI-driven decisions not only on technical accuracy but also on fairness and contextual relevance. Embedding CQ into HR practices enables organisations to anticipate employee perceptions, minimise cultural misalignment and strengthen trust and organisational legitimacy. Practical implications HR leaders can improve AI outcomes by integrating CQ into decision-making processes, ensuring transparency, maintaining human accountability in critical decisions and establishing effective mechanisms for employee voice and feedback. Originality/value This paper contributes by positioning CQ as a practical and strategic governance capability for HR leaders, shifting the discourse from technology-centric adoption to culturally informed and human-centred AI implementation.
Mishra et al. (2026) studied this question.