AI at work: unleashing employee creativity through strategic integration and digital leadership

Purpose This study examines how a clearly defined AI strategy influences employee creativity in knowledge-intensive organizations. It investigates the mediating role of employees perceived usefulness of AI tools and the moderating effect of digital leadership in shaping this relationship. Design/methodology/approach Data were collected via a questionnaire survey administered to 344 employees across organizations that have implemented AI initiatives. Using quantitative methods, we tested a conceptual framework in which AI strategy predicts perceived usefulness of AI tools, which in turn influences employee creativity. Digital leadership was tested as a moderator of the AI strategy to perceived usefulness and from perceived usefulness to creativity pathway. Findings Results show that a robust AI strategy increases perceived usefulness of AI tools among employees, which positively impacts employee creativity. Digital leadership significantly strengthens this effect: in organizations with high digital leadership, the positive effect of AI strategy on perceived usefulness and hence creativity is more pronounced. Research limitations/implications The cross-sectional design limits conclusions about causality and the temporal dynamics among AI strategy, perceived usefulness, digital leadership, and creativity. Self-report measures may introduce response bias. Also, findings may not generalize across all industries or cultural contexts. Practical implications Organizations should develop coherent AI strategies and invest in digital leadership development to maximize employee creativity. Training programs that enhance employee understanding of AI utility, coupled with leaders who actively support and guide AI adoption, can amplify creative outcomes. Originality/value This study contributes to the literature by integrating AI strategy, perceived usefulness, and digital leadership into a single model explaining employee creativity. While previous work has considered these constructs separately, their combined synergistic effect has been underexplored. The findings offer new insights for practitioners seeking to leverage AI to foster innovation in the workplace.