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Purpose This study aims to explore the associations linking employees’ challenge-hindrance appraisals toward artificial intelligence (AI) to service performance while considering the dual mediating roles of job crafting and job insecurity, as well as the moderating role of AI knowledge. Design/methodology/approach A survey was administered to a sample of 297 service industry employees. This study examined all the hypotheses with Mplus 8.0. Findings This study confirms that challenge appraisal toward AI has an indirect positive influence on service performance via job crafting (motivation process), whereas hindrance appraisal toward AI has an indirect negative influence on service performance via job insecurity (strain process). Meanwhile, AI knowledge, serving as a key personal resource, could strengthen the positive impacts of challenge appraisal toward AI on job crafting and of hindrance appraisal toward AI on job insecurity. Practical implications Organizational decision-makers should first survey employees’ appraisals toward AI and then adopt targeted managerial strategies. From the perspective of service industry employees, employees should adopt proactive coping strategies and enrich their knowledge of AI to meet the challenges brought by this technology. Originality/value The primary contribution of this study is that we enrich the literature on AI by exploring the dual mediators (i.e. job crafting and job insecurity) through which AI awareness affects service performance. Moreover, this study advances our understanding of when appraisals toward AI influence job outcomes by identifying the moderating role of AI knowledge.
He et al. (Thu,) studied this question.