AI in the Organizational Nexus: Building Trust, Cementing Commitment, and Evolving Psychological Contracts

Abstract

Since the Industrial Revolution, significant technological advancements have revolutionized various manual processes and workflows entrenched for decades. Artificial Intelligence (AI) offers similar transformative potential across diverse industrial and social domains. The rapid pace of change in the AI-driven digital age presents unprecedented opportunities and challenges for sustained progress. Given the potentially profound impact of AI, this study seeks to explore its disruptive effects and challenges within organizational contexts. Drawing on the Social Exchange Theory, this research examines the relationship between psychological contract (PC) fulfillment and organizational commitment, with trust acting as a mediator and AI acceptance as a moderator. Data were collected from the service industry using a time-lagged design. The findings indicate that PC fulfillment positively influences workers’ trust and organizational commitment. Furthermore, AI acceptance attenuates the direct and indirect positive effects of PC fulfillment on job-related outcomes. This study offers valuable insights into building and maintaining trust and fostering a committed workforce amidst the digitalization era. It underscores the importance of fulfilling promissory expectations in fostering trust and commitment. Additionally, it sheds light on the disruptive effects of AI technology on critical job outcomes, emphasizing the societal and industrial implications, the future of work, and avenues for further advancements in AI technology.