The Role of Leadership in Shaping AI-Driven Workplaces: Trust, Empowerment, and Organizational Agility

Abstract

The rise of AI in higher education is changing the way faculty, staff, and students teach, learn and function administratively; it demands that educators adapt to new technologies and work techniques. Although the literature has focused on technical readiness and digital literacies, there has been relatively little exploration into leadership in AI-rich educational settings. This research investigates the effect of leadership style on AI system trust, employee empowerment and organizational agility in higher education. Built upon the theoretical frameworks of transformational leadership and socio-technical systems theory, we argue that good leadership practices help to create trust, psychological safety and flexibility for academic staff to embrace AI-enabled systems more effectively. In addition, the relationship between AI adoption and organizational agility is moderated by leadership. Based on a quantitative research approach and results from surveyed faculty and administrative staff of Pakistani universities, it seeks to contribute to the discussion about leadership and human supportive AI implementation in academia. The contributions to the literature and possible implications for practice both in short and long-term for higher education senior managers, who struggle between pushing technological progress and caring about staff well-being and organizational agility.