DOI: 10.5281/zenodo.

10548950

THE IMPACT OF ARTIFICIAL INTELLIGENCE AND EMPLOYEE

EMPOWERMENT ON IMPROVING EMPLOYEE PERFORMANCE

ALGHAMDI ABDULLAH MOHAMMED

PhD Candidate, Lincoln University College, Malaysia. Email: aghamdi1@hotmail.com
Dr. DHAKIR ABBAS ALI
Associate Professor, Lincoln University College, Malaysia. Email: drdhakir@lincoln.edu.my

Abstract
This study explores the evolving dynamics in organizational management at the intersection of artificial
intelligence (AI), employee empowerment, and leadership dynamics. The infusion of AI into workplaces
represents a paradigm shift, challenging traditional roles and redefining work dynamics. To navigate this
transformative era, organizations are strategically turning to employee empowerment, aiming to preserve human
agency while capitalizing on the benefits of AI. This involves granting individuals greater autonomy and
responsibility in response to the evolving nature of work catalyzed by AI technologies. Within this context,
transformational leadership emerges as a crucial mediator in the intricate relationship between AI, employee
empowerment, and enhanced employee performance. Transformational leaders, renowned for their ability to
inspire and motivate, play a pivotal role in fostering a collaborative environment where AI and empowered
employees synergize. The confluence of AI and employee empowerment is a pivotal concern in the contemporary
business landscape, where AI technologies promise to reshape work processes and extract actionable insights from
vast datasets. Simultaneously, employee empowerment strategies aim to boost engagement and performance,
emphasizing the complementary nature of human capabilities in the age of AI. Recognizing the significance of
these interconnected factors, this study employs a comprehensive literature review approach to shed light on the
complex dynamics in modern workplaces. Building on recent research insights, the study provides valuable
guidance for organizations, leadership development, and policymakers navigating the evolving landscape of AI
adoption and its impact on employee performance.
Keywords: Artificial Intelligence, Digital Transformation, Organizational Adaptability, Employee
Empowerment, Employee Performance.

INTRODUCTION
In the ever-changing landscape of organizational management, the intersection of artificial
intelligence (AI), employee empowerment, and leadership dynamics is shaping the trajectory
of employee performance outcomes (Ho et al., 2023). The infusion of AI into the workplace
marks a paradigm shift, redefining traditional roles, altering work dynamics, and challenging
conventional leadership models (Wijayati et al., 2022). To navigate this transformative era,
organizations are turning to employee empowerment – a strategic response aimed at preserving
human agency while capitalizing on the benefits of AI.
Employee empowerment involves granting individuals greater autonomy and responsibility, a
response to the evolving nature of work catalyzed by AI technologies. In this context,
transformational leadership emerges as a crucial factor in mediating the intricate relationship
between AI, employee empowerment, and enhanced employee performance (Meria, Prastyani,
& Dudhat, 2022). Transformational leaders, known for their ability to inspire and motivate,

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become linchpins in fostering a collaborative environment where AI and empowered

employees synergize. The confluence of AI and employee empowerment has become a pivotal
concern in the contemporary business landscape (Odugbesan et al., 2023). AI technologies
offer immense potential to reshape work processes, going beyond mere automation to enable
the extraction of actionable insights from vast datasets. Simultaneously, employee
empowerment strategies seek to boost engagement and performance, emphasizing the
complementary nature of human capabilities in the age of AI.
Recognizing the significance of these interconnected factors, this study aims to illuminate the
complex dynamics unfolding in modern workplaces. Building on recent research insights
(Islam, Furuoka, & Idris, 2021), a comprehensive literature review approach is employed to
provide valuable guidance for organizations, leadership development, and policymakers
navigating the evolving landscape of AI adoption and its impact on employee performance.
The rapid integration of AI has ushered in a transformative era, revolutionizing business
operations (Perifanis & Kitsios, 2023). From machine learning algorithms to predictive
analytics, AI technologies promise unprecedented efficiencies. These efficiencies extend
beyond automation, empowering professionals across sectors with informed and precise
decision-making tools. As organizations embrace AI, the work environment subtly transforms,
with employees collaborating with intelligent systems, algorithms, and data-driven insights to
enhance their professional capabilities. This dynamic interplay underscores the need for
adaptive leadership, emphasizing the importance of transformational leaders in fostering a
harmonious relationship between AI, empowered employees, and optimized performance.
Empowered employees stand as a cornerstone in achieving organizational goals, offering not
only heightened engagement but also substantial contributions to innovation and overall
productivity (Kişi, 2023). This empowerment transcends traditional notions of autonomy and
decision-making authority; it extends into the creation of a work environment where employees
feel not only competent in their roles but also confident in their ability to instigate positive
change. As the organizational landscape grapples with the integration of artificial intelligence
(AI), the dynamics of human empowerment take on new dimensions.
Understanding how AI interfaces with and enhances human empowerment becomes pivotal in
deciphering the intricacies of organizational behavior (Rüth & Netzer, 2022). This thesis sets
out to unravel the complex dynamics through which empowered workers contribute to
improved performance within the unique framework of the facility under examination. It
recognizes that when employees are empowered in an organizational setting, harmoniously
intertwined with AI technologies, there exists the potential to redefine the very nature of work.
In this environment, employees cease to be mere consumers of technology but transform into
active contributors to the technological landscape, shaping the future of the workplace.
By delving into this synergy, the study seeks to shed light on the intricate mechanisms through
which AI tools empower the workforce, emphasizing the transformative potential of this
collaborative relationship. At the heart of this investigation lies a profound inquiry into the
mediating role of transformational leadership within the dynamic interplay of AI integration,

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workforce empowerment, and subsequent performance. Transformational leaders, with their

ability to inspire and motivate, emerge as crucial architects in navigating the evolving
landscape where AI and empowered employees converge, ultimately shaping the trajectory of
organizational success in the digital age.

LITERATURE REVIEW
The literature review serves as a crucial exploration of existing scholarship, providing the
groundwork for comprehending the intricate relationships among artificial intelligence (AI),
employee empowerment, and transformational leadership concerning the enhancement of
employee performance. The journey through the literature begins with an examination of AI's
transformative impact in healthcare settings. Numerous studies highlight the potential of AI to
revolutionize clinical workflows, boost diagnostic accuracy, and optimize healthcare delivery.
The integration of machine learning algorithms, natural language processing, and predictive
modelling into healthcare systems has been shown to augment decision-making processes and
contribute to the overall efficiency of healthcare institutions (Yang, 2022; Kitsios et al., 2023;
Negro-Calduch et al., 2021).
Studies delving into AI in healthcare consistently emphasize its ability to process vast amounts
of patient data swiftly, leading to more accurate diagnoses and personalized treatment plans
(Davenport & Kalakota, 2019; Alowais et al., 2023). Furthermore, the literature addresses the
challenges and ethical considerations linked with the adoption of AI in healthcare, emphasizing
the need for a nuanced understanding of its impact on organizational structures, workflows,
and critically, on the workforce.
As emphasized by Bajwa et al. (2021), the disruptive influence of AI in healthcare is not merely
a technological evolution; it signifies a paradigm shift demanding a re-evaluation of established
norms and practices within the healthcare landscape. One primary area where AI showcases its
transformative potential is in optimizing clinical workflows. Healthcare institutions, grappling
with the challenges of managing extensive patient data, intricate diagnostic processes, and
evolving treatment modalities, stand to significantly benefit from AI-driven solutions. Machine
learning algorithms can analyse vast datasets with unprecedented speed and accuracy, offering
healthcare professionals invaluable insights for personalized treatment plans, early disease
detection, and predictive modelling.
AI-powered imaging analysis, exemplified by its remarkable capabilities in enhancing the
accuracy and efficiency of medical imaging interpretation, stands out. Diagnostic imaging
modalities, including radiology and pathology, have witnessed the integration of AI algorithms
capable of detecting abnormalities, identifying patterns, and assisting healthcare professionals
in making more precise diagnoses (Hosny et al., 2018). This not only accelerates the diagnostic
process but also contributes to minimizing errors and improving patient outcomes, showcasing
the transformative potential of AI in healthcare settings.

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The integration of AI is not a one-size-fits-all solution but a tailored approach to address the
specific challenges and opportunities within the healthcare setting (Kitsios et al., 2023). AI
technologies are applied judiciously to augment human capabilities, providing healthcare
professionals at the hospital with advanced tools for data analysis, predictive modelling, and
personalized patient care. The strategic adoption of AI aligns with the organization's
commitment to optimizing processes, enhancing decision-making, and fostering a culture of
continuous innovation. In tandem with the technological evolution brought about by AI, the
concept of employee empowerment has gained prominence as a critical factor for
organizational success. Empowered employees are those who feel a sense of autonomy,
competence, and impact in their roles (Jasrin et al., 2020).
Effects of Ai on Workflow Optimization
One prominent theme within the literature revolves around the transformative impact of AI on
healthcare workflows. Studies consistently highlight how AI technologies streamline and
optimize routine processes, reducing manual workload and allowing healthcare professionals
to focus more on patient care (Kapa, 2023; Bajwa et al., 2021; Rožman et al., 2023; Kitsios et
al., 2023). The automation of administrative tasks within healthcare settings, facilitated by
Artificial Intelligence (AI), represents a paradigm shift in operational efficiency. Tasks such as
appointment scheduling and data entry, traditionally labour-intensive and time-consuming, are
now streamlined through the integration of AI-powered automation tools. Appointment
scheduling, a fundamental aspect of healthcare administration, is revolutionized by AI
algorithms that can efficiently manage and optimize appointment slots.
Data entry, another critical administrative function in healthcare, involves the accurate and
timely recording of patient information, medical histories, and treatment plans. AI-driven
automation systems excel in this domain by reducing the reliance on manual data entry
(Perifanis & Kitsios, 2023). Natural Language Processing (NLP) algorithms enable the
extraction of relevant information from unstructured text, such as clinical notes and patient
records, automating the input of data into electronic health records. This not only accelerates
the data entry process but also minimizes the risk of errors associated with manual input.
The integration of AI into workflow management systems has been shown to minimize delays
in patient care, enhance communication between healthcare providers, and facilitate a more
seamless coordination of tasks (Emre Sezgin, 2023; Alowais et al., 2023; Bajwa et al., 2021).
By leveraging machine learning algorithms, these systems can analyse vast datasets, identify
patterns, and make predictions with a level of precision that surpasses human capabilities. This
not only enhances the accuracy of diagnoses but also reduces the likelihood of errors in
treatment plans and medication administration. The agility and responsiveness of healthcare
systems are enhanced through AI's ability to adapt to dynamic situations.
Use of Ai for Diagnostics and Predictive Modeling
A considerable body of literature explores the transformative impact of AI in diagnostics,
illustrating its potential to revolutionize disease detection and enhance precision in medical
imaging. Hosny et al. (2018) and Rana and Bhushan (2022) concur that machine learning

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algorithms, powered by extensive datasets, exhibit remarkable capabilities in identifying

patterns and anomalies within medical images, such as X-rays, MRIs, and CT scans. The
incorporation of machine learning into medical imaging processes has inaugurated a new era
of diagnostic accuracy and efficiency.
An inherent strength of machine learning in medical imaging lies in its capacity to discern
intricate patterns within images. In contrast to traditional image analysis methods, machine
learning algorithms can perceive subtle nuances, textures, and irregularities that may elude the
human eye. This granularity facilitates more precise and early detection of abnormalities,
thereby contributing to enhanced diagnostic outcomes.
Consistent research findings underscore the role of AI-powered diagnostic tools in facilitating
early and more accurate identification of diseases, leading to improved patient outcomes
(Madrid et al., 2023; Al-Antari, 2023). The literature encompassing the integration of Artificial
Intelligence (AI) in healthcare paints a compelling narrative of AI serving as a force multiplier
for healthcare professionals, providing invaluable support across various dimensions of patient
care. This extends beyond the domain of diagnostic imaging to include differential diagnoses,
personalized treatment plans, and even predictive modelling for proactive healthcare
management.
The Impact of Ai on Employee Empowerment
Martínez-Comesaña et al. (2023) posit that the integration of AI technologies introduces a
nuanced dimension to discussions on employee empowerment. Existing literature explores
how the impact of AI on empowerment can vary, either enhancing or potentially hindering it,
contingent upon how its implementation aligns with organizational strategies and employee
experiences (França et al., 2023; Malik et al., 2021). On the positive side, AI holds the potential
to augment empowerment by furnishing healthcare professionals with advanced tools and
insights that amplify their decision-making capabilities.
Empowerment derived from AI, in this context, emanates from the sense of competence and
efficiency it bestows upon healthcare professionals. Nevertheless, the literature underscores
potential challenges and pitfalls associated with the integration of AI that could impede
employee empowerment. Factors such as resistance to change, insufficient training, or
perceiving AI as a threat to job security may diminish the positive effects of AI on
empowerment. Without strategic implementation, AI technologies might create a divide
between those proficient in interacting with the technology and those who are not, potentially
fostering feelings of disempowerment among specific segments of the workforce.
A prominent theme in the literature explores the nexus between employee empowerment and
the ability to adapt and innovate—an essential aspect in the context of AI integration.
Empowered employees, as indicated by research findings, are more inclined to embrace
technological changes, actively seek continuous learning opportunities, and contribute to the
development and implementation of AI technologies (Jaiswal et al., 2021; Rožman et al., 2023).
Studies underscore the role of empowerment in cultivating a culture where healthcare
professionals feel confident experimenting with new technologies, suggesting improvements,

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and actively participating in the adaptation process (Jiang et al., 2021; Tveiten, 2021). In the
era of Artificial Intelligence (AI), the dynamic relationship between empowerment and
adaptability emerges as a critical factor shaping organizational success, particularly within the
intricate landscape of healthcare.
Mediating Role of Transformational Leadership
The exploration of literature on the mediating role of transformational leadership in the
relationship between AI integration and employee empowerment reveals a nuanced and
intricate interplay of factors that significantly influence organizational dynamics.
Transformational leadership, characterized by its emphasis on inspiration, intellectual
stimulation, and individualized consideration, emerges as a crucial conduit that connects the
technological evolution represented by AI, the empowerment experienced by the workforce,
and the ultimate performance outcomes within organizations.
A central theme in the literature is the transformative impact of leadership on how employees
perceive and adapt to AI technologies (França et al., 2023). Transformational leaders assume a
pivotal role in shaping the narrative surrounding AI integration, articulating a vision that aligns
with the organization's mission and values. The literature consistently underscores the essential
role of transformational leadership as a mediator in the complex relationship between AI
integration and employee empowerment (Ibrahim et al., 2023).
Thompson et al. (2021) posit that transformational leaders serve as intermediaries influencing
how the assimilation of AI technologies resonates within the organizational culture and
subsequently impacts the level of empowerment experienced by employees. Studies highlight
that transformational leaders act as interpreters of the organizational vision for AI integration,
translating it into a narrative that aligns with the values and aspirations of the workforce
(Matsunaga, 2021). Through inspiration, intellectual stimulation, and individualized
consideration, transformational leaders play a pivotal role in mediating the narrative
surrounding AI integration.
Research findings delve into the nuanced ways in which transformational leaders contribute to
shaping a positive perception of AI among employees. Perifanis and Kitsios (2023) and
Aldoseri et al. (2023) propose that by fostering a shared vision that emphasizes the potential
benefits of AI, leaders mitigate potential resistance and anxieties associated with technological
change. According to Matsunaga (2021), transformational leaders are instrumental in creating
a narrative that positions AI as a tool for augmenting human capabilities rather than a threat to
job security.
Their ability to convey the strategic significance of AI integration within the context of
organizational goals contributes to a culture where employees feel empowered to adapt to and
leverage these technological advancements. In essence, the role of transformational leadership
emerges as a linchpin in shaping the narrative, perceptions, and ultimate outcomes of AI
integration in the organizational landscape.

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CONCLUSION
The findings of this study hold practical significance for organizations, especially within the
healthcare sector, seeking to harness the potential of AI technologies while empowering their
workforce. It underscores the necessity not only to adopt AI but also to establish supportive
physical environments and foster transformational leadership, thereby maximizing the positive
impact on employee performance. Essentially, this research contributes valuable insights to the
expanding knowledge base at the intersection of AI, employee empowerment, and leadership
within the healthcare setting.
Drawing from the study's conclusions, the following recommendations are proposed to enhance
the practical implications for organizations, particularly within the healthcare sector. First,
organizations are encouraged to strategically integrate AI technologies into their operations,
selecting tools that align with the specific needs of the healthcare workforce. Accompanying
this integration should be comprehensive training programs to ensure employees possess the
necessary skills to effectively use and derive benefits from AI in their daily tasks.
Recognizing the impact of physical facilities on employee empowerment, innovative
organizations should optimize workspaces to cultivate a culture of innovation and
empowerment. This may involve creating collaborative spaces, providing modern and well-
equipped facilities, and ensuring a comfortable and supportive environment that enhances
employees' well-being and job satisfaction. Acknowledging the mediating role of
transformational leadership, organizations should invest in leadership development programs
emphasizing the principles of transformational leadership. Leaders within healthcare
organizations should be trained to inspire and motivate their teams, providing a clear vision
and support for employees as they navigate the integration of AI and empowerment initiatives.
Establishing mechanisms for continuous monitoring and feedback is crucial. Regular
assessments of AI implementation, employee empowerment initiatives, and the effectiveness
of transformational leadership practices will enable organizations to adapt and refine their
strategies. This iterative approach ensures that the organization remains responsive to the
evolving needs of both employees and the rapidly changing landscape of AI technology.
The study contributes to the understanding of how the convergence of artificial intelligence,
employee empowerment, and transformational leadership specifically influences employee
performance in the healthcare sector. By examining these interrelated factors within the context
of healthcare, the research addresses a critical gap in existing knowledge, providing a nuanced
perspective on the unique dynamics of AI adoption and empowerment practices in healthcare
settings.
The introduction of the mediating role of transformational leadership enriches the existing
literature on the influence of leadership styles in the context of AI and employee empowerment.
This contribution sheds light on the importance of leadership qualities in optimizing the
positive effects of AI technologies and empowerment initiatives on employee performance.

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In summary, the study offers actionable insights for healthcare organizations aiming to leverage
AI technologies and empower their workforce. The practical implications, including strategic
AI integration, optimization of physical work environments, leadership development, and
continuous monitoring, provide a comprehensive roadmap for organizations seeking to
enhance employee performance in the era of AI.
Suggestions for Further Studies
Future research endeavors have the potential to delve into the intricate ways in which cultural
and contextual variations influence the relationships discerned in the present study. Given the
diverse nature of healthcare systems and work environments across various regions and
countries, understanding these variations is paramount.
Exploring the impact of cultural nuances on the interplay between AI integration, employee
empowerment, and leadership styles can offer tailored insights for organizations operating in
diverse cultural landscapes. Such research could unravel how different cultural contexts shape
the adoption and effectiveness of AI technologies in promoting employee empowerment,
providing a nuanced understanding of the contextual factors that influence organizational
dynamics.
A crucial avenue for future exploration involves investigating the long-term effects of AI
implementation and empowerment initiatives on employee performance. While the current
study provides valuable insights into the immediate impact, delving into the sustainability of
positive outcomes over time is essential. This could involve examining how employee
empowerment and performance evolve as organizations navigate the continuous advancements
in AI technologies.
Longitudinal studies can shed light on the durability of positive effects and identify potential
challenges that may arise over time, such as employee burnout and the need for ongoing
adaptability. Understanding the long-term implications of AI implementation and
empowerment initiatives contributes to building a comprehensive knowledge base, aiding
organizations in crafting sustainable strategies that foster continuous improvement and
employee well-being.
Moreover, future research could explore the dynamic relationship between AI technologies and
employee empowerment in the context of the evolving nature of AI itself. As AI technologies
continue to advance, understanding how these advancements influence the effectiveness of
empowerment initiatives becomes crucial. Research can investigate how employees adapt to
evolving AI capabilities, ensuring that empowerment strategies remain aligned with the
cutting-edge developments in technology.
This forward-looking perspective is vital for organizations aiming to stay at the forefront of
innovation, fostering an environment where employees not only adapt to change but actively
contribute to shaping the future of AI in the workplace.

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