Advances in Consumer Research
Issue:6 : 1671-1685
Original Article
Cost-Benefit Analysis Of Diversity, Equity And Inclusion (Dei) Initiatives On Financial Performance
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1 HOD & Assistant Professor, Department of Business Administration, NERIM Group of Institutions,
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2 Assistant Professor, Department of Business Administration, NERIM Group of Institutions,
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3 Assistant Professor, Department of Computer Science, NERIM Group of Institutions,
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4 Assistant Professor, Department of Business Administration, NERIM Group of Institutions,
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5 Assistant Professor, Department of Business Administration, NERIM Group of Institutions,
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6 Assistant Professor, Department of Business Administration, NERIM Group of Institutions,
Abstract

In today’s corporate landscape, Diversity, Equity, and Inclusion (DEI) initiatives are increasingly recognized as strategic levers for fostering innovation and enhancing organizational performance. This study evaluates the effectiveness of AI/ML-enabled DEI interventions using global firm-level data from 2019–2024, with a particular focus on workforce diversity outcomes and inclusion sentiment gaps. By applying the Global Diversity and Inclusion (D&I) Index framework, the analysis reveals a significant positive relationship between DEI scores and improved diversity metrics following AI/ML-driven recruitment practices. Furthermore, the study highlights the mediating role of Intellectual Capital Efficiency (ICE), demonstrating that inclusive practices strengthen intangible assets such as knowledge-sharing, collaborative culture, and employee engagement. Empirical findings show that the direct impact of DEI on diversity outcomes (β = 0.38) is partially mediated by ICE, with the effect size decreasing to β = 0.29 when ICE is accounted for. These results underscore the organizational value of integrating DEI with intelligent HR technologies, providing evidence-based guidance for aligning inclusion strategies with long-term talent and innovation goals

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