Gain or Pain: The Double‐Edged Sword Effect of Artificial Intelligence Adoption on Employee Service Performance

ABSTRACT Artificial intelligence (AI) has become increasingly pervasive and plays a crucial role in the service industry. However, its impact on employee service performance remains ambiguous. Drawing on affective events theory, this research investigates the curvilinear effect of AI adoption on service performance, with vigor and anxiety acting as mediators. We further explore how this indirect curvilinear effect is contingent on two key factors: proactive personality and organizational AI support. Through a scenario‐based experiment and a multi‐wave, multi‐source survey, the findings reveal that AI adoption has an inverted U‐shaped relationship with service performance via vigor and anxiety. Additionally, when proactive personality and organizational AI support are low, the indirect curvilinear effect of AI adoption on service performance via vigor is stronger. Conversely, when proactive personality and organizational AI support are high, the indirect curvilinear effect via anxiety becomes more pronounced. This research enhances our understanding of the complex impact of AI adoption on service performance and provides guidance for organizations to optimize AI adoption in the digital age.