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Artificial Intelligence Adoption and Workforce Transformation: The Moderating Role of Strategic Leadership
Artificial intelligence (AI) has the potential to transform the nature of work, yet the extent to which this happens is highly heterodox across workplaces. In this conceptual article, the authors offer a possible answer to this difference: the strategic leadership as a moderator of the relationship between AI adoption and workforce transformation. It integrates both upper echelons theory and dynamic capabilities theory with the job demands-resources model, and it proposes four facets of workforce transformation: skill reconfiguration, job redesign, employment change, and employee well-being. Six propositions follow. AI use has both positive and negative consequences such as skill reconfiguration, job redesign and job insecurity. Top management vision enhances the positive path, while ethical leadership diminishes the negative path. The link between leadership involvement and adoption benefits is curvilinear (too much control is bad) and it is different for each stage of implementation. The authors propose that strategic leadership's moderating effect is more pronounced in situations where resources are scarce, like small and medium-sized enterprises or emerging economies such as Africa. The article adds value to the literature. It does not presume that strategic leadership is always good news as it makes connections between managerial choices and employee experience at various levels of analysis, and extends the debate beyond the current literature on advanced economy countries. It concludes with implications for management and a research agenda for testing the propositions.


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