AI anxiety or job crafting? How employees’ AI perceptions reshape innovative work behaviour in Pakistan’s corporate landscape

Purpose The research investigates how employees evaluate artificial intelligence (AI) technology adoption by organisations and indulge in performing innovative work behaviour (IWB) through the parallel mediation of job crafting and AI anxiety under the moderating effect of supervisor support for innovation. The study addresses a literature gap by uniting rational (job crafting) with emotional (AI anxiety) dimensions when understanding employee positive and negative reactions to AI implementation. Design/methodology/approach The research bases its findings on the transactional theory of stress and coping through a dual-mediator design. It utilises data from 308 employees selected through purposive sampling from Pakistan’s tech sector through a time-lagged survey design to interpret the results. Findings The research demonstrates that organisations must create environments that provide leadership support for innovation and the availability of appropriate resources because these reduce AI-related concerns while enhancing IWB. Challenge appraisals enable workers to actively redesign their tasks through job crafting, which improves their IWB. In contrast, hindrance AI appraisals lead to AI anxiety, which prevents risk-taking and skill development, limiting IWB. Practical implications The study provides organisations with helpful guidance about how to handle their AI-related operational changes. The research is aligned with sustainable development goals SDG 8 (decent work and economic growth) and SDG 9 (industry, innovation and infrastructure) by offering business leaders specific ways to use employees’ innovative capabilities during technological changes. Originality/value The research develops comprehensive theoretical knowledge about how cognitive and emotional aspects influence innovation in developing economies and how leaders’ support for innovation can foster employees’ IWB during AI transitions.