Leading with artificial empathy: a systematic review on emotional AI, hybrid team dynamics, innovation in project environments

Purpose This study examines the role of emotional artificial intelligence (emotional AI) in project and innovation management, focusing on how affect-aware technologies shape trust, psychological safety, creativity, and collaboration in hybrid human-AI teams. The review seeks to clarify emotional AI’s function as a socio-technical coordination mechanism within human-centered project environments. Design/methodology/approach A systematic literature review was conducted in accordance with the PRISMA 2020 guidelines. Searches were performed in the Scopus and Web of Science databases, covering the period from 2013 to 2025. A Boolean search strategy combining terms related to emotional AI, affective computing, artificial empathy, project work, and innovation initially identified 853 records. Following screening and eligibility assessment, 54 peer-reviewed journal articles were retained for qualitative synthesis. The analysis combined thematic coding with bibliometric keyword co-occurrence mapping to enhance analytical rigor. Findings The review identifies five interrelated themes: (1) trust and communication, (2) motivation and psychological safety, (3) creativity and innovation outcomes, (4) ethical and cultural challenges, and (5) hybrid human–AI collaboration. The findings indicate that emotional AI has evolved from a peripheral assistive technology into a mediating socio-technical mechanism that shapes emotional dynamics in project teams. While emotional AI can enhance coordination, wellbeing, and innovation by stabilizing affective conditions under uncertainty, its effectiveness is contingent upon transparency, contextual sensitivity, and governance arrangements that address risks related to over-automation, bias, and privacy. Originality/value This study provides one of the first systematic syntheses of cross-disciplinary research on emotional AI within project and innovation management. By grounding emotional AI in observable coordination mechanisms rather than normative claims, the review advances theory on affect-aware project work and offers a structured foundation for future empirical research and responsible managerial practice in emotionally augmented collaboration.