AI adoption: a bridge or a barrier? The moderating role of organizational support in the path toward employee well-being

Purpose The purpose of this study is to assess how managerial capability affects artificial intelligence (AI) adoption and employee well-being now in a dynamic context of organizational change. This study investigated the role that managerial capability and organizational support play in facilitating successful AI technology implementation within organizations. The study seeks to provide an integrated perspective on how organizations can help mitigate the effects of AI anxiety and improve the well-being of employees. Design/methodology/approach A survey questionnaire was administered to collect data from 324 employees and managers working in small- and medium-sized enterprises (SMEs) located in Pakistan. Partial least squares-structural equation modeling (PLS-SEM) was employed using Smart PLS version 4.1.0.3 to analyze the relationships between the study variables. Findings The findings of the study show that AI anxiety can significantly impact employee well-being. However, the relationship was moderated by organizational support. When organizational support was high, the effects of AI anxiety decline on employee well-being. Originality/value This study offers three important implications; it adds to our understanding regarding AI adoption and its effect on employee well-being by addressing how managerial interventions may facilitate the smooth integration of AI technology and examining the moderating effect that organizational support might have over the association between anxiety and employee well-being. Additionally, we have offered a nuanced view of the potential impact of AI adoption on employees and offered practical recommendations for organizations to undertake to address AI anxiety and promote employee well-being during AI implementation.