Purpose This study explores the impact of Artificial Intelligence (AI) on technical skills development, job insecurity, and system adoption within organisations. It examines how businesses can navigate AI-driven workplace transformations while mitigating workforce challenges and fostering a culture of trust and innovation. Design/methodology/approach The research adopts a mixed-method approach, combining theoretical analysis with empirical insights. Data were gathered from the AI-driven transformation Scopus database, analysing the relationship between AI implementation, employee perceptions, and organisational strategies for skill development and job security. Findings (1) AI has a dual impact: it increases demand for advanced technical skills while also heightening job insecurity, particularly in organisations lacking structured reskilling programs. (2) Organisations that integrate transparent governance and employee participation into AI adoption strategies experience lower resistance and higher acceptance. (3) A balance between technological advancement and human capital investment is critical for minimising disruptions and ensuring a smooth transition to AI-driven operations. Research limitations/implications The study is limited by the scope of available industry data and the generalisability of case study findings. Future research should explore sector-specific AI adoption challenges and long-term workforce adaptation strategies. Practical implications The findings offer actionable insights for organisational leaders and policymakers, emphasising the need for structured skill enhancement programs, transparent communication, and ethical AI governance frameworks. These measures reduce workforce resistance, enhance innovation, and facilitate equitable AI-driven transformation. Social implications By addressing concerns about job security and skill obsolescence, the study contributes to a more sustainable AI integration approach that promotes workforce adaptability, inclusion, and ethical decision-making in the digital era. Originality/value This research provides a novel perspective by integrating AI adoption, skill development, and job insecurity within the broader framework of organisational transformation. It offers a socio-technical view of AI-driven change, highlighting the importance of ethical considerations and participatory decision-making.
Lahuerta et al. (Fri,) studied this question.