Sustainable HR Practices with AI

Authors

DOI:

https://doi.org/10.70301/SBS.MONO.2025.1.5

Keywords:

leadership, innovation, commitment, resilience, artificial intelligence or AI, sustainability;

Abstract

Artificial intelligence (AI) is crucial for productivity and efficiency. Employees’ deteriorating commitment and resilience add to organizations’ concerns on sustainability. An innovative culture facilitates organizations to benefit from AI, whilst leadership influences innovation, employees’ commitment and resilience. The current study aims to examine the mediating effects of innovative culture on the positive relationships of transformational leadership with employees’ affective organizational commitment and resilience and identify practical recommendations for employers, leaders and HR practitioners to drive innovation and sustainability. Data were collected from a random sample of 430 employees in Hong Kong via an online survey with validated scales. Structured equation modelling through SmartPLS (Version 4.1.0.9) was used to examine the linear relations and the mediating effects. Ten semi-structured interviews were conducted to validate how transformational leaders drive AI development and adoption, innovation and workforce sustainability in their organization. Transformational leadership was positively related to innovative culture (p=0.000), employees’ affective organizational commitment (p=0.000) and resilience (p=0.000), whilst innovative culture was positively related to employees’ affective organizational commitment (p=0.000) and resilience (p=0.010). Hence, innovative culture partially mediated the positive relationships between transformational leadership and employees’ affective organizational commitment and resilience. The interviews showed that transformational leaders are role models who create psychological safety for their employees to take risk with accountability to enable experimentation, expose employees to stimulations for innovation and growth, establish trust and transparent communication with everyone to strengthen their affective organizational commitment and resilience to adversity. Leaders should demonstrate transformational leadership to drive employees’ affective commitment and resilience, which are crucial for their organization’s sustainability. Transformational leadership also helps leaders create an innovative culture to facilitate the development and implementation of AI. HR practitioners  should implement leadership development programs focused on transformational leadership.

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Additional Files

Published

14.01.2026

Issue

Section

Book of Chapters 2026: Artificial Intelligence and Economic Disruptions: Business Transformation, Leadership, and Future Organizational Models

How to Cite

Sustainable HR Practices with AI. (2026). SBS Journal of Applied Business Research, 1, 80-107. https://doi.org/10.70301/SBS.MONO.2025.1.5

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