Publication Details
Abstract
The fast process of Artificial Intelligence (AI) implementation into the organizational processes is transforming the nature of work, specifically in family-owners businesses. Though AI is efficient and innovative, its implementation presents serious psychological and emotional difficulties to the employees. This paper examines the problem of psychological safety loss in family businesses due to the implementation of AI through identity threats and the sense of job insecurity. In particular, it tests how AI-induced identity threat, affective job insecurity, cognitive job insecurity and employee well-being are related to one another. Based on the recent empirical and theoretical data, the study will develop the hypothesis that AI identity threat has a negative impact on employee well-being, whereas it has a positive effect on both affective and cognitive job insecurity. Besides, affective and cognitive job insecurity is suggested to have adverse effects on the well-being of employees. These results demonstrate the need to focus on the emotional and cognitive reactions of employees to technological change, especially in the context of family businesses where relations and values play a significant role. The psychological risks, loss of employee identity, and organizational resilience during digital transformation can be reduced by the family firms through open communication, emotional support, and transparent leadership when adopting AI.