Artificial intelligence, affective well-being and workplace happiness in Iberoamerican companies

Purpose This study examines how artificial intelligence (AI) influences employee emotional well-being by analysing the behavioural mechanisms linking autonomy, fairness, clarity, psychological safety and workplace happiness, with a specific focus on Iberoamerican organisational contexts. Design/methodology/approach A synthetic dataset (n = 650), calibrated to validated psychometric scales and qualitatively informed by exploratory interviews with organisational leaders and AI practitioners, is analysed using covariance-based structural equation modelling. The model evaluates how perceived AI support and AI pressure shape key organisational conditions and, through them, workplace happiness. All analyses are conducted in R using the lavaan package. Findings Perceived AI support positively influences autonomy, fairness and clarity, which jointly strengthen psychological safety. Psychological safety emerges as the strongest predictor of workplace happiness, while AI-related algorithmic pressure shows a significant negative association with employee well-being. The results indicate that managerial choices in the design and governance of AI systems directly shape emotional climates, engagement and the sustainability of digital transformation processes. Research limitations/implications The study relies on synthetic – but realistically calibrated – data, which may limit external generalisability. However, grounding the generative process in validated psychometrics and executive insights enhances contextual realism. Future research should incorporate longitudinal field data and cross-country comparisons. Conceptually, the paper advances happiness management by integrating behavioural constructs and AI governance, offering a scalable framework for studying well-being in digital workplaces. Practical implications The results provide actionable guidance for leaders implementing AI in human-centric organisations. Managers should prioritise autonomy, clarity of processes, psychological safety and fairness when deploying AI tools. The findings inform the design of governance structures, communication strategies and training programmes that mitigate emotional risks. The framework also helps firms identify conditions under which AI supports sustainable happiness, talent retention and positive emotional climates. Social implications The study contributes to the broader debate on ethical AI and decent work in Iberoamerica. It shows how AI adoption can either enhance or erode human well-being depending on governance quality. The results support policies aligned with the sustainable development goals (SDGs) – particularly SDG 3, SDG 8, and SDG 9 – by offering evidence-based insights into the emotional and social sustainability of AI-enabled workplaces. Originality/value The study introduces the concept of affective friction to explain employees’ emotional responses to AI-enabled systems. By integrating human-centred AI design, psychological safety and happiness management within a unified behavioural–economic framework, the paper offers a culturally grounded contribution to organisational research in Iberoamerican contexts.