The paradoxical effect of artificial intelligence adoption on employee objectification

Purpose Although advanced technologies provide organisations with extraordinary opportunities, research has also highlighted their potential negative effects on employees. The purpose of this study is to investigate the impact of artificial intelligence (AI) adoption on employee objectification on the basis of the cognitive appraisal theory of stress and compensatory control theory. Design/methodology/approach A two-wave on-site questionnaire was administered to a total of 191 full-time employees working for small and medium-sized Chinese companies. Findings This study revealed that AI adoption positively affects employee objectification. On the one hand, AI adoption induces a realistic threat that exacerbates employee objectification; on the other hand, it gives rise to an identity threat that weakens employee objectification. The results of this research also indicate that ethical culture weakens the positive relationship between realistic threat and employee objectification and strengthens the negative relationship between identity threat and employee objectification. Furthermore, ethical culture moderates the indirect effect of AI adoption on employee objectification via identity threat. Originality/value This research reveals the paradoxical effect of AI adoption on employee objectification and expands the underlying mediating mechanism by introducing two dimensions of intergroup threat – i.e., realistic threat and identity threat. This study also represents a highly valuable exploration of the boundary conditions associated with the influence of AI adoption in this context and an examination of the moderating role played by ethical culture in these effects.