The Dark Side of use of AI on Project Failure with Employee Productivity as the Mediator

This study explores how Artificial Intelligence (AI) can harm projects, concentrating on its effect on project failure while measuring employee productivity as a mediator. By using the Resource-Based View (RBV) framework, this study investigates how AI can negatively affect the outcome of projects. Information from 268 employees of the software industry in Pakistan was analyzed statistically. Based on findings, over-trusting in AI and its problems have a strong connection to project failures because they tend to result in wrong decisions, delays and missed objectives. Relying too much on AI may reduce both employee creativity and drive, making it harder for them to succeed and increase the failure of projects, but results point to a positive connection with project failure. Mediation analysis reveals that problems with AI play an indirect role in project faliure by affecting how motivated and efficient the workforce is. According to these studies, combining AI into an organization productively needs attention to both human-related practices and overall company goals. All in all, using AI in this way supports both ethics and strategy, helping to make the best use of its advantages and minimize the negative effects on staff and the project.