How does AI technology integration affect employees’ proactive service behaviors? A transactional theory of stress perspective

Abstract

While AI technology is widely integrated into service creation and delivery processes, the empirical evidence about its impact on employees has been mixed. Based on transactional theory of stress, this study explores how service employees appraise and react to AI technology integration utilizing data collected from employees of service companies that integrated AI technologies into their operations. Findings suggest that AI technology integration is simultaneously appraised by employees as both a positive challenge, leading to employees' thriving at work and enhanced proactive service behaviors, and as a hindrance, leading to job insecurity perceptions and decreased proactive service behaviors. Furthermore, this study investigates employees' IT mindfulness as a boundary condition that impacts the effects of AI technology integration on employee appraisals and finds that IT mindfulness can attenuate the relationship between AI technology integration and employees' hindrance appraisals. Findings provide insights on how service companies can effectively integrate AI technologies into their operations to enhance employees’ proactive service behaviors.