Code green: ethical leadership’s role in reconciling AI-induced job insecurity with pro-environmental behavior in the digital workplace

Abstract The current research investigates the complex interplay between artificial intelligence (AI)-induced job insecurity, psychological contract breach (PCB), pro-environmental behavior at work (PEBW), and ethical leadership in the context of organizational sustainability. As AI technologies increasingly permeate the workplace, understanding their impact on employee attitudes and behaviors becomes crucial for maintaining organizational effectiveness and environmental responsibility. Drawing on several theories, we developed and tested a moderated mediation model using a three-wave time-lagged design with 391 employees from various South Korean corporations. Our findings reveal that AI-induced job insecurity does not directly affect PEBW, but rather operates through the mediating mechanism of PCB. Specifically, AI-induced job insecurity positively influences PCB, which in turn negatively affects PEBW. Moreover, ethical leadership emerges as a significant moderator, mitigating the positive association between AI-induced job insecurity and PCB. This study uniquely contributes to the literature by integrating AI-induced job insecurity into the organizational sustainability framework, offering novel insights into how technological advancements influence employee pro-environmental behaviors. Our findings extend the understanding of the Context-Attitudes-Behavior framework in the digital age, bridging the gap between technological disruption literature and environmental sustainability research. These results provide practical implications for organizations striving to balance technological innovation with employee well-being and environmental responsibility, offering strategies for maintaining pro-environmental behaviors amidst AI-induced uncertainties. This paper contributes to the growing literature on AI at work and offers insights for organizations navigating the challenges of technological advancement while promoting environmental sustainability.