Challenge and hindrance: Yin and Yang paths of AI usage’s effects on Chinese employee innovative behaviour

This research aims to explain whether the use of Artificial Intelligence (AI) by employers fosters or hinders employee innovative behaviour. Incorporating the Yin-Yang perspective as the overarching framework and integrating the cognitive appraisal perspective, we propose a curvilinear effect between AI usage and innovative behaviour, resulting from opposing Yin and Yang pathways. AI usage can influence two regulatory states of employees: challenge appraisals and hindrance appraisals. These, in turn, affect their innovative behaviour in opposite directions. In a multi-wave survey study, we found that AI usage had a positive U-shaped curvilinear effect on innovative behaviour, which we term the ‘Getting Better’ effect. This indicates a positive indirect effect of AI usage on innovative behaviour through challenge appraisals. In contrast, an experiment revealed an inverted U-shaped curvilinear effect of AI usage on innovative behaviour, which was the ‘TMGT (Too Much of a Good Thing)’ effect. This highlights a negative indirect effect of AI usage on innovative behaviour through hindrance appraisals. Furthermore, our research suggests that higher self-efficacy can weaken the negative indirect effect of AI usage on innovative behaviour through hindrance appraisals. We discuss theoretical contributions and practical implications for individuals and organizations.