AI adoption and ethical capitalistic orientation: investigating the moderating effect of human–AI synergy in China SMEs

Purpose This study investigates the interplay between artificial intelligence (AI) adoption, ethical capitalistic orientation and the moderating role of human–AI synergy, a new construct developed via grounded theory. This study aims to understand how these variables influence organizational decision-making in the AI era, specifically promoting ethical practices and mitigating negative outcomes such as employee displacement. Design/methodology/approach Using both qualitative and quantitative regression analysis, this study examines the relationships among AI adoption, ethical capitalistic orientation and human–AI synergy. Statistical tools were used to test hypotheses, identify AI adoption’s impact on organizational ethics and assess human–AI synergy’s moderating role. This research also explores how combining AI and human collaboration can foster a more ethical, socially responsible business model. Findings Findings show AI adoption positively impacts ethical capitalistic orientation (β1 = 0.45, p = 0.0001). Human–AI synergy significantly enhances this effect (β2 = 0.30, p = 0.0005) and moderates the relationship between AI adoption and ethical practices (β4 = 0.15, p = 0.0030). The study emphasizes focusing on human–AI collaboration over workforce displacement to maintain ethical practices and achieve efficiency. These results highlight the importance of ethical AI adoption and social responsibility. Originality/value This study introduces human–AI synergy as a novel construct, demonstrating its critical moderating role in the relationship between AI adoption and ethical capitalistic orientation. It offers new insights into how businesses can leverage AI without workforce reduction or unethical practices. This research emphasizes building ethical frameworks for AI adoption, presenting a novel perspective integrating technology with human-centered decision-making.