Exploring the Impact of AI Capabilities on Employee Well-Being: A Mediated Moderation Analysis

Munaza Bibi, Tse Guan Tan and Heng Yao

SAGE Open, 2025, vol. 15, issue 3, 21582440251361981

Abstract: Around the globe, technological advancements such as artificial intelligence (AI) are reshaping workplaces affecting employee wellbeing (EWB). To understand the AI-EWB link, a conceptual model is developed to explore the link between AI-driven capabilities and employee wellbeing (EWB), with cybernetic thinking (CT) as a mediator. Furthermore, organizational ambidexterity (OA) is introduced as a moderating factor between CT and EWB grounded on integrated dynamic capabilities with resource-based theory in the context of a developing country like Pakistan. Data were collected from 490 doctors working in private sector hospitals across two major cities of Pakistan—Karachi & Islamabad and data analysis was performed using PLS-SEM 4.0. Results indicate that AI-driven capabilities significantly relate to EWB. Furthermore, CT explains the relationship between tangible, human resources, intangible-driven AI capabilities, and EWB. In addition, OA moderates the link between CT and EWB. Hence, mediated moderation is established. To remain resilient, this study offers theoretical as well as practical insights into how healthcare practitioners can harness AI through integrating organizational factors like CT can help reduce stress and improve EWB through adopting a balanced approach to manage innovation. Policy implications along with directions for studies to be conducted by researchers are also provided.

Keywords: AI capabilities; employee wellbeing; organizational ambidexterity; cybernetic thinking; mediated moderation; resource-based theory; dynamic capabilities (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440251361981 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251361981

DOI: 10.1177/21582440251361981

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().