Transformational Leadership in the Digital Workplace: Effects on Workplace Satisfaction and Quality of Work Life through AI Acceptance
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Abstract
Artificial Intelligence is transforming the nature of work, but the benefits for any individual worker will rely on leadership and employees' acceptance of new technologies. This research investigates the direct and indirect relationship between transformational leadership and satisfaction and quality of work life in the manufacturing and service sectors of Pakistan with the mediation of acceptance of the use of AI in the workplace. A cross sectional design with quantitative approach was used. The respondents were 521 employees who were selected by convenience sampling method and data were obtained by physically using questionnaire and analyzed by partial least squares structural equation modeling. The results suggest that transformational leadership has a positive effect on both employee satisfaction and quality of work life as well as on employee acceptance of AI. In addition, there are positive impacts on employee outcomes from the acceptance of AI. Additionally, the relationships between transformational leadership and the outcomes of workplace satisfaction and quality of work life are supported by AI acceptance as a mediator in all the proposed hypotheses. Inspirational, supportive, intellectually stimulating, and individually considerate leadership leads to favorable conditions in which employees see the usefulness, manageability, and compatibility of AI in their work. In exchange, robust acceptance allows staff members to access efficiency, autonomy, learning chances, and also work-related health and well-being. This study brings Social Exchange Theory to the field of AI in the work environment and provides empirical evidence in a context from an underrepresented emerging economy. The development of transformational leadership should be integrated with transparent communication of AI to the employees, participation by employees in the implementation process, training employees on AI, and providing employees with technical support.