AI and employee performance: the role of knowledge and techno-pessimism in the digital age

Purpose Artificial intelligence (AI) is increasingly embedded in organizational routines, yet its influence on employee outcomes remains uneven across contexts. This study aims to explore how AI assimilation contributes to the development of knowledge within firms and how that knowledge, in turn, shapes employee creativity and engagement. Design/methodology/approach Drawing on Social Cognitive Theory (SCT), the analysis focuses on knowledge creation as a key mediating process and examines how technology pessimism can disrupt these dynamics. Survey data from 506 hospitality firms in China were analyzed using AMOS 24 and SPSS 23. Findings The findings reveal that AI’s impact on employee behavior is neither direct nor universal; it operates through shifts in how individuals interpret, share and generate knowledge. The findings suggest that knowledge creation acts as the bridge between technological tools and meaningful work outcomes, but that bridge weakens when employees harbor doubts about AI’s relevance or trustworthiness. Originality/value By embedding AI within the SCT framework, this study repositions technology not as a stand-alone input but as part of a broader socio-cognitive system. While the cross-sectional design limits causal interpretations, the research offers timely insights for managers seeking to cultivate learning-driven, AI-supported workplaces in sectors marked by rapid technological change.