Maneuvering through the stormy seas of digital transformation: the impact of empowering leadership on the AI readiness of enterprises

Abstract

Digital transformation exposes enterprises of altering business strategies and adapt technological advancements such as artificial intelligence (AI). AI is expected to fundamentally transform the future of work, however, associated changes cause resistance behaviour of employees and hindered AI readiness, i.e., missing preparedness for the implementation. This study examines whether leadership reduces resistance and how it contributes to the AI readiness of enterprises. Expert interviews indicate that empowering leadership, precisely autonomy and development support, is favourable to maneuver AI-induced change. Nevertheless, the quantitative evaluation on the impact of empowering leadership shows neither a significant effect on resistance to change nor on AI readiness. We discuss that employees strive for consistency and leaders who provide stable environments. Researchers understand which factors implicate AI readiness of employees and how leadership and resistance to change contribute. Practitioners comprehend which leadership attributes are fruitful for organizational alignments and how leaders generate appropriate readiness.