The Transformative Impact of Artificial Intelligence (AI) on Organisational Behaviour (OB): A Study of Employee Engagement, Performance, and Ethical Implications

Artificial Intelligence (AI) is transforming organizational behavior by reshaping employee engagement, performance, and decision-making processes. This study examines AI’s impact on workplace dynamics, focusing on its role in optimizing workload distribution, enhancing productivity, and supporting leadership adaptation. AI-driven tools, such as sentiment analysis and predictive modeling, facilitate engagement and efficiency but also introduce challenges related to job security, ethical concerns, and transparency. Using a qualitative approach, this research synthesizes findings from systematic literature reviews and meta-analyses to explore the implications of AI in modern organizations. The results indicate that AI-supported leadership and human-centered design principles contribute to motivation and long-term productivity. However, excessive AI reliance may disrupt trust and psychological contracts, potentially affecting organizational culture. This study emphasizes the need for ethical AI governance and strategic leadership to mitigate risks while leveraging AI’s benefits. By adopting a balanced approach to AI integration, organizations can foster employee well-being, maintain equitable decision-making, and align AI adoption with sustainable growth. These findings contribute to the discourse on AI in management, offering insights into how organizations can harness AI’s potential while safeguarding human-centered values.