The Double-Edged Sword of AI Literacy: Effects on Psychological Needs and Emotional Outcomes

The increasing integration of artificial intelligence (AI) in the hospitality industry presents a paradox: while AI-driven tools enhance efficiency and service delivery, their psychological and emotional impact on employees remains underexplored. This study examines the bidirectional effects of artificial intelligence literacy (AIL) on employees' psychological needs satisfaction—autonomy, competence, and relatedness—within the framework of Self-Determination Theory (SDT). AIL may serve as a catalyst for workplace empowerment, fostering competence (AI mastery), autonomy (task control), and relatedness (collaborative AI interactions), leading to positive emotional well-being (EW) such as job satisfaction and motivation. Conversely, low AI literacy may undermine these needs, exacerbating stress, job insecurity, and workplace alienation, thus contributing to negative EW. Through a survey of hotel employees, this study investigates: (1) the mediating role of psychological needs in the AIL-EW relationship, (2) the differentiated impact of AIL on positive and negative EW, and (3) the moderating influence of demographic factors (e.g., age, education) on these relationships. Findings will provide empirical insights into AI's psychosocial