The dark and bright sides of AI–human interaction for work engagement: an investigation from the social exchange perspective

Purpose The social exchange relationship between employees and employers has transformed due to AI deployment in the workplace, posing significant implications for employees’ work engagement. Accordingly, this study examines the underlying social exchange factors that elucidate how AI–human interaction affects work engagement. Drawing on social exchange theory (SET), the study proposes that workers form two competing perceptions in their interaction with AI: usefulness and job insecurity. These perceptions, in turn, affect their job engagement differently via psychological contract fulfillment. Design/methodology/approach Data for testing the proposed hypotheses was collected through self-reported questionnaires from employees in the sales department of a large organization in Hangzhou, China. Structural equation modeling was used to analyze the data. Findings The results revealed that the AI–human interaction was positively related to perceived usefulness and job insecurity. Moreover, perceived usefulness had a positive and indirect relationship with job engagement through psychological contract fulfillment. In contrast, job insecurity was negatively and indirectly related to job engagement via psychological contract fulfillment. Originality/value The study contributes to the literature and SET by examining the impact of AI–human interaction on work outcomes from the perspective of reciprocal exchange relationships with exploring the unique interplay between perceived usefulness, job insecurity and psychological contract fulfillment.