The Human Side of AI Adoption: Leadership, Job Security, Psychological Need, and Employee Outcomes

Abstract

The rapid integration of artificial intelligence (AI) into the education sector has raised a question that goes beyond technology itself: When is AI's use beneficial to employees instead of a burden? The study builds on the theories of Self-Determination Theory (SDT), Social Exchange Theory (SET), and the Technology Acceptance Model (TAM) and proposes the following mediation model: AI Adoption Leadership Style influences Task Performance and Job Stress, with Perceived Job Security and Psychological Need satisfaction serving as the mediating psychological mechanisms.Based on the theories of SDT, SET, and TAM, this study proposes the following mediation model: AI Adoption Leadership Style affects Task Performance and Job Stress, while Perceived Job Security and Psychological Need satisfaction act as the psychological mediation pathway. A total of 359 respondents from the education sector of Punjab, Pakistan, were selected to collect the data and analyzed using partial least squares structural equation modeling (PLS-SEM) software, namely SmartPLS 4. Strong reliability and validity were obtained in the measurement model and good fit was achieved for the structural model (R² = 0.44-0.49, SRMR = 0.044). AI Adoption Leadership Style significantly and positively affected Psychological Need (β = 0.668) and Perceived Job Security (β = 0.663), and had significant direct effect on Task Performance (β = 0.433) and Job Stress (β = -0.503). The results showed that the mediation model for the relationship between Perceived Job Security and Task Performance was complementary partial mediation (β = 0.336) and the mediation model for the relationship between Psychological Need and Job Stress was complementary partial mediation (β = -0.246). All eight hypotheses were supported with both stress related pathways appearing in the hypothesized negative direction. The findings contribute to the existing human-resource and technology-adoption literature and have important implications for educational leaders who are tasked with leading change through the use of AI in an under-researched context of education in South Asia.