The design industry in the AI era: How AI awareness and AI literacy influence the innovative work behavior of Chinese Generation Y designers

Utilizing the Job Demands-Resources (JD-R) model, this study methodically examines the joint effects of Artificial Intelligence (AI) awareness and AI literacy on the innovative work behavior (IWB) of Generation Y designers in China, mediated by both stress and motivational pathways. A survey involving 496 employed Gen Y designers reveals that AI awareness substantially increases emotional exhaustion (EX), subsequently impeding innovation indirectly. In parallel, AI awareness notably enhances intrinsic motivation (IM), which fosters innovative behavior, thus presenting a “double-edged sword” effect. Even though AI literacy does not directly boost IM, it significantly lowers EX and positively moderates the relationship between AI awareness and IM. Subsequent analysis shows that AI literacy acts as a moderated mediator in the motivational pathway, bolstering the indirect positive impact of AI awareness on innovative behavior. This research extends the JD-R model's utility in the realm of intelligent technologies, clarifies the multifaceted pathways through which AI influences employees' psychological states and work behaviors, and provides significant theoretical contributions and practical implications for talent management and capability development within the design industry in the AI era. • AI awareness has both inhibitory and motivational effects on designers' innovation. • AI literacy reduces emotional exhaustion and indirectly boosts innovative behavior. • AI awareness enhances intrinsic motivation, especially for those with high AI literacy. • The study extends the JD-R model by integrating AI-related demands and resources. • Findings offer actionable insights for AI-based upskilling in the design industry.