Does AI literacy enhance employee work engagement by boosting work self-efficacy or reducing job burnout? A one-year longitudinal study

In the AI era, the importance of AI literacy has become increasingly prominent, particularly among employees. Although preliminary research suggests that AI use may enhance employee work engagement, the relationship between AI literacy and work engagement remains underexplored—especially its longitudinal effects and underlying mechanisms. We conducted a one-year longitudinal study consisting of three waves of surveys with a sample of 1,108 employees aged between 21 and 60 years. At Time 1 (T1, baseline), we measured demographic information, AI literacy, and work engagement; at Time 2 (T2, 6 months later), we assessed work self-efficacy and job burnout; and at Time 3 (T3, 1 year later), we re-evaluated work engagement. Results showed that, after controlling for gender, age, AI use intensity, and T1 work engagement, T1 AI literacy significantly and positively predicted T3 work engagement. When mediators were included, T1 AI literacy not only directly predicted T3 work engagement but also exerted indirect effects through three pathways: (1) the independent mediating effect of T2 work self-efficacy, (2) the independent mediating effect of T2 job burnout, and (3) the chain mediation of T2 work self-efficacy and T2 job burnout. These findings confirm the long-term predictive role of AI literacy on work engagement and clarify the complex mechanisms behind its sustained influence, offering practical insights for organizations and individuals to better leverage AI for career development.