Exploring the Impact of AI Capabilities on Employee Well-Being: A Mediated Moderation Analysis

Around the globe, technological advancements such as artificial intelligence (AI) are reshaping workplaces affecting employee wellbeing (EWB). To understand the AI-EWB link, a conceptual model is developed to explore the link between AI-driven capabilities and employee wellbeing (EWB), with cybernetic thinking (CT) as a mediator. Furthermore, organizational ambidexterity (OA) is introduced as a moderating factor between CT and EWB grounded on integrated dynamic capabilities with resource-based theory in the context of a developing country like Pakistan. Data were collected from 490 doctors working in private sector hospitals across two major cities of Pakistan—Karachi & Islamabad and data analysis was performed using PLS-SEM 4.0. Results indicate that AI-driven capabilities significantly relate to EWB. Furthermore, CT explains the relationship between tangible, human resources, intangible-driven AI capabilities, and EWB. In addition, OA moderates the link between CT and EWB. Hence, mediated moderation is established. To remain resilient, this study offers theoretical as well as practical insights into how healthcare practitioners can harness AI through integrating organizational factors like CT can help reduce stress and improve EWB through adopting a balanced approach to manage innovation. Policy implications along with directions for studies to be conducted by researchers are also provided.