Artificial Intelligence Adoption and Employee Well-Being in Germany: A Cross-Sectional Comparative Study

Abstract

Abstract: Artificial intelligence (AI) is transforming the nature of work, the skills needed, and the way organisations are managed, but its connections with employee well-being are not consistent and are specific to the context. This cross-sectional comparative study explored the relationships between workplace AI use, formal organisational adoption, workplace transformation, employee well-being, and job satisfaction among employees in manufacturing and knowledge-intensive service industries in Germany. The analytic sample consisted of 1208 workers, of which 603 were manufacturing and 605 were knowledge-intensive service workers. Results indicated that the greater the use intensity of AI, the more positive the relationships between AI use and employee well-being and job satisfaction. Job intensity and job insecurity and algorithmic monitoring, on the other hand, were negatively associated with both outcomes. Implementation-quality and psychosocial workplace conditions were studied: training adequacy, employee participation, transparency and job autonomy. The positive relationship between the intensity of AI use and well-being was more pronounced for knowledge-intensive service workers compared to manufacturing workers, while the sector interaction for job satisfaction was not statistically precise. The results indicate that AI in the workplace is not a purely technological solution, but a sociotechnical phenomenon. Its impact is influenced by the design of work, the quality of implementation, employee involvement and organisational governance. The study adds to the discussion on AI, work and well-being, by highlighting that AI can have a positive impact on employment outcomes when implemented in an organisation that is transparent, participatory and autonomy supporting, but also that poorly governed AI can exacerbate psychosocial risks.