Is AI a Double-Edged Sword? Navigating Employee Concerns in AI as an Innovation

Abstract

Purpose – This study aims to conceptualize artificial intelligence (AI) as a “double-edged sword” in organizational innovation by examining how AI simultaneously generates employee strain and developmental opportunities. Design/methodology/approach – Adopting a theory-building and conceptual approach, this study integrates the Job Demands-Resources model, Conservation of Resources theory and the sociotechnical systems perspective. Drawing on an extensive interdisciplinary literature review, this study develops an integrated conceptual framework and a set of theoretical propositions to explain the mediating and moderating mechanisms through which AI influences employee outcomes. Findings – AI-powered innovation increases demands on employees by reducing workload and uncertainty, but it also creates opportunities for learning, development and new work resources. Employee responses are shaped more by organizational practices such as leadership support, transparency, fairness and reskilling than by the technology itself. Originality/value – This study proposes an integrated multilevel framework that combines Job DemandsResources, Conservation of Resources and sociotechnical perspectives to explain the dual effects of AI in organizational settings. By framing employee concerns as rational, context-dependent responses rather than technological resistance, this study advances AI and work research and lays a foundation for future empirical studies on human-centered AI-driven innovation.