Leadership in the AI Era: Transactional and Transformational Leadership in AI-driven companies

This research work is focused on the impact of transformational leadership and transactional leadership on employee performance and engagement in AI enabled software project industry. The mediating effect of employee engagement in relationship with these dependent and independent variables is also being studied. The sample size of the study covered entire managers, executive officers and staff of the AI driven organization in Pakistan. Data collection was carried out with the help of questionnaires in hard form and distributed between managers, executive officers and staff, whereas total number of received questionnaires were 190. Pilot testing was conducted for ensuring the validity of questionnaire responses. Descriptive statistics and reliability tests were conducted for analyzing demographic analysis of variables. To check the influence and association of independent and dependent variable with mediator, correlation and regression tests were applied for the interpretation of results about this study. The result of this research shows that impact of the variables with each other is seemed to be significant and positive. This study also has the implications those can be utilized in future research regarding transformational leadership. This study also encourages the leaders for creative and innovative ideas regarding transformational leadership and transactional leadership skills so that leader can improve employee performance through engagement. Major findings of this research work is that transactional leadership has more positive impact on performance of employee rather than the transformational leadership because transactional leadership in fully significant, directly and also with mediation creates impact.