The Impact of Artificial Intelligence On Organizational Behavior

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The Impact of Artificial Intelligence on Organizational Behavior

A Term Paper in Leadership and Organizational Behavior

Submitted by

Bishal Khadka

Bachelor of Business Administration (BBA)

Third Semester

Roll No.: 34057/22

TU Registration No.: 7-2-7-941-2022

Submitted to

Faculty of Management

Mahendra Multiple Campus, Tribhuvan University

Dharan, Sunsari

July 2024
Student Declaration

I declare that the Term report titled 'The Impact of Artificial Intelligence on
Organizational Behavior,' submitted to the Faculty of Management at Mahendra Multiple
Campus, Tribhuvan University, is solely my own work. This report fulfills the requirements of the
Term course within the Bachelor of Business Administration (BBA) program.

I acknowledge all assistance received during my research and in preparing this report.
Additionally, I confirm that all sources of information and literature cited in this report are duly
acknowledged in the references. This report has not been previously submitted to any other
university or institution for any academic qualification.

...………….…….……..

Bishal Khadka

Mahendra Multiple Campus

July, 2024

ii
Certificate from Supervisor

We have examined the Term report titled 'The Impact of Artificial Intelligence on
Organizational Behavior,' presented by Bishal Khadka from Mahendra Multiple Campus,
Dharan, as part of the requirements for the Bachelor of Business Administration (BBA) degree.
Following a viva voce examination of the candidate, we affirm that the report meets the criteria
for acceptance.

…………………….

Mr..………………...

External Supervisor

……………………

Mr. Khagendra Niroula

Supervisor

iii
Acknowledgements

I am deeply thankful to Mr. Khagendra Niroula, my advisor at Mahendra Multiple Campus,


Tribhuvan University, for his invaluable guidance and steadfast support throughout this research.
His expertise significantly shaped the direction and quality of this Term report. I also extend my
gratitude to the employees and organizations who generously participated in the survey, sharing
their time and valuable insights, without whom this study would not have been possible.

Furthermore, I wish to acknowledge the support and encouragement of my teachers and


friends, whose unwavering assistance was crucial in overcoming the challenges encountered
during this project. Lastly, heartfelt thanks go to my family for their unwavering support and
understanding. Their love and encouragement served as my motivation. I sincerely appreciate all
contributors whose invaluable contributions were essential to the successful completion of this
Term report.

Bishal Khadka

July, 2024

iv
Abstract

Artificial Intelligence (AI) is revolutionizing organizational behavior by transforming how


tasks are performed and decisions are made within workplaces. This study explores the
multifaceted impact of AI on job satisfaction, motivation, and ethical considerations in
organizational settings. Through a synthesis of theoretical frameworks and empirical evidence, it
investigates how AI automation of routine tasks influences employee job satisfaction, highlighting
opportunities for enhanced productivity and skills development. Concurrently, the study examines
ethical implications such as algorithmic bias, privacy concerns, and the ethical use of AI in
decision-making processes. Real-world examples from Nepal and beyond illustrate the
complexities and challenges associated with AI integration, emphasizing the need for balanced
strategies that maximize benefits while mitigating risks. By addressing these issues, this research
contributes to a deeper understanding of AI's role in shaping organizational behavior and informs
strategies for fostering adaptive and ethical workplaces in the digital age.

Keywords: Artificial Intelligence, Organizational Behavior, Job Satisfaction, Ethical


Implications, Decision-Making, Workplace Automation

v
Table of Contents

Student Declaration ..................................................................................................................... ii

Certificate from Supervisor........................................................................................................ iii

Acknowledgements .................................................................................................................... iv

Abstract ....................................................................................................................................... v

Chapter I: Introduction ................................................................................................................ 1

1.1 Background of the Study ...................................................................................................... 1

1.2 Statement of the Problem ...................................................................................................... 2

1.3 Objectives of the Study ......................................................................................................... 3

1.4 Methods of the Study ............................................................................................................ 3

1.4.1 Sources of the Information................................................................................................. 3

1.4.2 Analysis of the Information ............................................................................................... 4

1.5 Review of the Literature ....................................................................................................... 4

1.5.1 Conceptual Review ............................................................................................................ 4

1.6 Limitation of the Study ......................................................................................................... 7

Chapter II: Analysis and Discussion ........................................................................................... 9

2.1 Analysis ................................................................................................................................. 9

2.2 Evidences of Nepal ..............................................................................................................11

vi
Chapter III: Summary and Conclusion ..................................................................................... 13

3.1 Summary ............................................................................................................................. 13

3.2 Conclusion .......................................................................................................................... 14

References ................................................................................................................................. 16

vii
Chapter I: Introduction

1.1 Background of the Study

Artificial Intelligence (AI) has emerged as a transformative force in various sectors,


reshaping how organizations operate and influencing organizational behavior. AI refers to a branch
of computer science focused on creating smart machines that perform tasks requiring human
intelligence, such as learning, reasoning, problem-solving, and decision-making (Khan, 2021). The
integration of AI into the workplace has accelerated, especially in the post-COVID-19 era, as
organizations sought to minimize human interaction to curb the spread of the virus. This period
saw an increase in AI applications ranging from diagnosing illnesses to automating supply chains
and enhancing customer service through virtual assistants (Rao, 2021).

The adoption of AI tools in organizational settings has profound implications for job
satisfaction, personality, and attitudes of employees. AI can enhance job satisfaction by automating
tasks, thereby allowing employees to engage in more complex and fulfilling activities. For
instance, AI-powered tools can take over repetitive data entry tasks, enabling employees to focus
on strategic planning and creative problem-solving, which are more engaging and rewarding
(Brynjolfsson & McAfee, 2014). However, AI also poses risks, such as job displacement and the
potential loss of human judgment and decision-making skills, which are critical in roles requiring
emotional intelligence. The balance between leveraging AI for efficiency and maintaining
meaningful human roles is a significant concern for organizational leaders.

The evolving landscape necessitates policies and strategies to manage the transition
effectively. These include investing in education and training programs to prepare the workforce
for new roles created by technological advances, establishing regulations to govern the responsible
use of AI, and developing ethical guidelines to align AI systems with human values and goals. For
example, companies can implement continuous learning initiatives to help employees acquire new
skills relevant to AI-enhanced roles, ensuring they remain competitive and adaptable in the job
market.

Moreover, the impact of AI on organizational behavior extends to team dynamics and


leadership styles. AI tools can facilitate better communication and collaboration among team
2

members by providing real-time data and insights, which can help in making informed decisions
quickly (Zhou, 2020). However, the reliance on AI can also lead to challenges, such as over-
dependence on technology and reduced interpersonal interactions, potentially affecting team
cohesion and trust.

Ethical considerations are principal in the deployment of AI in organizations. Ensuring


transparency, accountability, and fairness in AI systems is critical to prevent biases and
discrimination (Floridi & Taddeo, 2018). Organizations must develop robust ethical frameworks
to guide the design and implementation of AI technologies, ensuring they enhance rather than
undermine human well-being and dignity (Bostrom & Yudkowsky, 2014). For instance, algorithms
used in hiring processes should be regularly audited to avoid biased outcomes that could perpetuate
inequality.

While AI presents opportunities to enhance organizational efficiency and employee


satisfaction, it also requires careful management to mitigate risks and ensure that its benefits are
realized without compromising human values and job security. The successful integration of AI in
organizations hinges on a balanced approach that promotes innovation while safeguarding ethical
standards and human-centric work environments.

1.2 Statement of the Problem

The rapid integration of Artificial Intelligence (AI) into organizational operations presents
both opportunities and challenges. While AI can significantly enhance efficiency, productivity, and
decision-making processes, its impact on organizational behavior remains under-explored (Khan,
2021).

Specifically, there are concerns about how AI affects employee job satisfaction,
interpersonal dynamics, and the overall organizational culture (Rao, 2021). Additionally, the
ethical implications of AI deployment, such as bias in decision-making algorithms and the
potential for job displacement, necessitate a thorough investigation.
3

To address these issues, this study aims to explore the following research questions:

• How does the implementation of AI technologies influence employee job satisfaction


and motivation within organizations?
• What are the ethical implications of AI in organizational decision-making, and how do
they affect organizational trust and culture ?

These questions seek to uncover the multifaceted impact of AI on organizational behavior,


providing insights into both the benefits and challenges of AI integration in the workplace. By
addressing these questions, the study aims to offer a comprehensive understanding of how AI
shapes the organizational environment and identify strategies to leverage its advantages while
mitigating potential risks.

1.3 Objectives of the Study

The primary objective of this Term paper, titled " The Impact of Artificial Intelligence on
Organizational Behavior" is:

• To investigate how the implementation of AI technologies influences employee job


satisfaction and motivation within organizations.
• To analyze the ethical implications of AI in organizational decision-making and their
effects on organizational trust and culture.

1.4 Methods of the Study

1.4.1 Sources of the Information

This study draws upon a diverse range of sources to explore "The Impact of Artificial
Intelligence on Organizational Behavior." Primarily, it synthesizes existing literature from
academic journals, books, and articles focusing on artificial intelligence, organizational behavior,
4

job satisfaction, motivation, and ethical implications in organizational settings. Additionally,


empirical studies and case examples provide practical insights into AI's implementation across
various sectors, particularly within Nepal where available data allows. Government publications
and industry reports further contribute to understanding policy frameworks, technology adoption
trends, and ethical guidelines relevant to AI integration in organizational contexts.

1.4.2 Analysis of the Information

The analysis of information in this study involves synthesizing and critiquing diverse
sources to develop a comprehensive understanding of AI's impact on organizational behavior.
Through a thorough literature review, it identifies key theories, trends, and frameworks shaping
discussions on AI's influence on job satisfaction, employee motivation, and ethical considerations.
Empirical studies and case analyses are pivotal in examining real-world implications, highlighting
both positive outcomes and challenges associated with AI adoption in Nepal and beyond.
Comparative analysis across different sectors and organizational contexts enriches the study by
uncovering common themes and variations in AI's effects. Ethical analysis critically evaluates
issues such as fairness, bias, privacy, and transparency, offering insights into their implications for
organizational trust and culture. Ultimately, the study aims to distill these findings into practical
recommendations for organizations, policymakers, and stakeholders, facilitating informed
decision-making in navigating the complexities of AI integration while ensuring ethical and
human-centric organizational practices.

1.5 Review of the Literature

1.5.1 Conceptual Review

Artificial Intelligence refers to the development of computer systems capable of


performing tasks that typically require human intelligence (Russell & Norvig, 2020). In
organizational settings, AI encompasses various technologies such as machine learning, natural
5

language processing, and robotics, which are increasingly being integrated into business processes
and decision-making systems (Davenport & Ronanki, 2018).

Job satisfaction, defined as the pleasurable emotional state resulting from the appraisal of
one's job experiences (Locke, 1976), can be significantly influenced by AI implementation. The
Job Characteristics Model (JCM) by Hackman and Oldham (1976) provides a framework for
understanding how AI might affect job satisfaction through changes in skill variety, task identity,
and task significance.

Organizational behavior, which studies how individuals and groups act within
organizations (Robbins & Judge, 2019), is evolving with the integration of AI. The socio-technical
systems theory (Trist & Bamforth, 1951) is particularly relevant in understanding how AI, as a
technological component, interacts with the social aspects of organizations.

The ethical implications of AI in organizations are often analyzed through the lens of
utilitarianism and deontological ethics (Bostrom & Yudkowsky, 2014). Issues such as algorithmic
bias, privacy concerns, and the potential for job displacement require careful ethical consideration
(Floridi & Cowls, 2019).

Organizational trust, defined as the willingness of employees to be vulnerable to the actions


of their organization (Mayer et al., 1995), can be affected by AI implementation. The technology
acceptance model (TAM) by Davis (1989) provides insights into how perceived usefulness and
ease of use of AI systems might influence trust and acceptance.

Schein's (2010) model of organizational culture, which includes artifacts, espoused values,
and basic underlying assumptions, can be used to understand how AI integration might reshape
organizational culture. The introduction of AI may lead to changes in all three levels of culture,
potentially creating a more data-driven and technologically oriented organizational ethos.
6

These conceptual frameworks provide a foundation for analyzing the multifaceted impact
of AI on organizational behavior, job satisfaction, ethics, trust, and culture. They offer valuable
lenses through which to examine the complex interplay between technological advancements and
human factors in organizational settings.

1.5.2 Empirical Review

Several empirical studies have investigated the impact of Artificial Intelligence (AI) on
various aspects of organizational behavior.

Bhargava et al. (2021) conducted a study on employees' perceptions of AI implementation


in various industries. They found that AI adoption led to increased job satisfaction in sectors like
pharmaceuticals, where employees appreciated the upskilling opportunities. However, in other
industries, AI implementation resulted in decreased job satisfaction due to perceived threats to job
security and reduced teamwork opportunities. A study by Xu et al. (2021) on the impact of AI in
supply chain management revealed that AI implementation improved employee performance by
enhancing decision-making processes and reducing manual errors. The study reported a 20-25%
increase in time spent on value-added activities.

Floridi and Taddeo (2018) examined the ethical implications of AI in organizational


decision-making. Their research highlighted concerns about algorithmic bias and the need for
transparent AI systems. They found that organizations implementing ethical AI frameworks
reported higher levels of employee trust and improved organizational reputation. Martin (2019)
conducted a case study on AI implementation in hiring processes. The study revealed that while
AI-driven hiring tools improved efficiency, they also raised concerns about fairness and potential
discrimination. Organizations that implemented regular audits of their AI systems reported more
positive outcomes and higher employee acceptance.

Glikson and Woolley (2020) investigated the factors influencing trust in AI systems within
organizations. Their study found that employees' trust in AI was positively correlated with
7

perceived transparency of the AI system and the level of human oversight. They also noted that
trust in AI varied across different organizational levels, with senior management generally showing
higher levels of trust. Shneiderman (2020) examined the impact of human-AI collaboration on
organizational trust. The study found that organizations implementing collaborative AI systems,
where humans and AI work together, reported higher levels of employee trust and job satisfaction
compared to those with fully automated AI systems.

Kolbjørnsrud et al. (2017) conducted a global survey of managers on the impact of AI on


leadership and organizational culture. They found that AI implementation led to a shift towards
more data-driven decision-making cultures. However, they also noted challenges in maintaining
human-centric values in increasingly AI-driven environments. A longitudinal study by Raisch and
Krakowski (2021) examined how AI adoption changed organizational culture over time. They
observed that organizations successfully integrating AI tended to develop cultures that valued both
technological proficiency and human creativity, leading to improved innovation outcomes.

These empirical studies provide valuable insights into the multifaceted impact of AI on
organizational behavior. They highlight both the potential benefits of AI in enhancing job
satisfaction and performance, as well as the challenges in maintaining ethical standards, trust, and
a balanced organizational culture. The findings underscore the need for thoughtful implementation
of AI technologies in organizational settings.

1.6 Limitation of the Study

Here are the limitations of the study:

• The findings and conclusions drawn from this study may not be universally applicable
across all organizational contexts, especially considering the diverse nature of
industries and organizational cultures.
8

• The study's scope may limit the depth of analysis for long-term impacts of AI
integration, as the effects could evolve over time and require longitudinal studies for
comprehensive understanding.
• Potential biases in the selection of literature sources and empirical studies could
influence the interpretations and conclusions drawn regarding AI's impact on
organizational behavior.
• The study primarily focuses on job satisfaction, motivation, and ethical implications.
Other aspects of organizational behavior influenced by AI, such as leadership dynamics
or organizational learning, may warrant further exploration.

While these limitations are important to acknowledge, they provide opportunities for future
research to delve deeper into understanding how AI integration can be effectively managed to
maximize benefits while mitigating risks in diverse organizational settings.
Chapter II: Analysis and Discussion

2.1 Analysis

The integration of Artificial Intelligence (AI) into organizational processes has had a
profound and multifaceted impact on organizational behavior. This analysis focuses on two key
areas: the influence of AI on job satisfaction and employee motivation, and the ethical implications
of AI in organizational decision-making.

The effect of AI on job satisfaction and employee motivation has been mixed. On one hand,
AI's ability to automate routine and repetitive tasks has led to significant job redesign in many
organizations, potentially increasing job satisfaction by enhancing skill variety and task
significance. Employees in some sectors, particularly those requiring high levels of technical
expertise, have reported increased job satisfaction due to new upskilling opportunities presented
by AI adoption. Furthermore, AI has shown potential to significantly enhance employee
performance and productivity by improving decision-making processes and reducing manual
errors, which can lead to increased job satisfaction as employees feel more effective and valuable
in their roles.

However, the impact of AI on job satisfaction varies across industries and individual
circumstances. In some sectors, AI implementation has resulted in decreased satisfaction due to
perceived job insecurity and reduced opportunities for teamwork. The introduction of AI
technologies can be a source of stress and anxiety for some employees, particularly those who feel
unprepared for the technological shift. This underscores the importance of appropriate training and
development programs to accompany AI implementation, which can enhance employee
motivation by providing new learning opportunities and career growth prospects.

The use of AI in organizational decision-making processes raises several ethical concerns


that significantly impact organizational behavior. One of the primary challenges is ensuring
fairness and avoiding bias in AI-driven decision-making systems, particularly in areas such as
10

hiring and performance evaluation. The potential for algorithmic bias can lead to discrimination
and unfair treatment, undermining employee trust and organizational integrity.

Privacy and data protection are also major ethical concerns, as AI often involves processing
large amounts of personal data. Organizations must prioritize data protection and transparency in
their AI systems to maintain employee trust and comply with ethical standards. The balance
between AI automation and human judgment is crucial for ethical decision-making and
maintaining employee trust, with studies showing that trust in AI systems is positively correlated
with the level of human oversight.

The "black box" nature of some AI algorithms can lead to a lack of transparency in
decision-making processes, which can erode trust and accountability within the organization.
Implementing explainable AI systems and maintaining clear communication about AI's role in
decision-making are essential for building trust and ensuring ethical use.

Another significant ethical consideration is the potential for job displacement as AI


technologies advance. While AI can create new job opportunities, it also poses risks of job loss in
certain sectors. Organizations face the ethical challenge of managing this transition, ensuring fair
treatment of employees, and providing adequate support for reskilling and redeployment.

The analysis reveals that AI's impact on organizational behavior is nuanced and context-
dependent. While it offers significant potential for enhancing job satisfaction, motivation, and
productivity, its implementation must be carefully managed to address ethical concerns and
maintain a positive organizational culture. The successful integration of AI in organizational
settings requires a balanced approach that leverages the benefits of technology while prioritizing
human values, ethical considerations, and employee well-being.
11

2.2 Evidences of Nepal

The integration of Artificial Intelligence (AI) in various sectors in Nepal is transforming


organizational behavior and having a profound impact on job satisfaction, motivation, and ethical
considerations. In the healthcare sector, AI is being utilized to improve diagnostic accuracy and
manage patient records more efficiently. For instance, AI algorithms are employed to diagnose
diseases like tuberculosis from chest X-rays, significantly enhancing diagnostic speed and
accuracy. This technological advancement allows healthcare professionals to focus on more
complex cases, potentially increasing their job satisfaction and overall work efficiency.

In the agricultural sector, AI is playing a pivotal role in precision farming. The Nepalese
government, along with various NGOs, is promoting the use of AI-driven tools for soil health
monitoring and weather prediction. These tools provide farmers with actionable insights, reducing
uncertainty and helping them make informed decisions to optimize crop yields. As a result, farmers
experience higher job satisfaction and productivity, as their work becomes more effective and
rewarding.

The financial sector in Nepal is also undergoing significant changes due to AI integration.
Banks are using AI for fraud detection, risk management, and customer service through chatbots.
By automating repetitive tasks, AI allows bank employees to concentrate on more strategic and
value-added activities, enhancing their job satisfaction and motivation. Moreover, AI-driven
solutions improve operational efficiency and customer service quality, benefiting both employees
and customers.

However, the adoption of AI in Nepal brings about important ethical implications that must
be addressed to maintain organizational trust. In hiring processes, for example, it is crucial to
ensure that AI algorithms are free from bias to maintain fairness and equity. Regular audits and
transparent AI practices are necessary to uphold ethical standards and foster trust within
organizations. Privacy concerns are also most important, especially in sectors like finance and
12

healthcare, where sensitive data is handled. Organizations must implement robust data protection
measures to gain and maintain the trust of employees and customers.

The potential for job displacement due to AI automation is another significant concern.
While AI can automate routine tasks, it also creates opportunities for new roles that require
different skill sets. To mitigate the risk of job displacement, Nepalese organizations are investing
in reskilling and upskilling programs. These initiatives help employees transition to new roles
created by AI advancements, ensuring they remain competitive and adaptable in the job market.

Empirical studies and real-world examples further illustrate the impact of AI on


organizational behavior in Nepal. In the healthcare sector, a study by the Nepal Health Research
Council in 2022 revealed that AI tools improved diagnostic accuracy and efficiency, leading to
better patient outcomes and increased job satisfaction among healthcare workers. Similarly,
research on AI applications in agriculture showed that farmers using AI-driven tools experienced
a 15% increase in crop yields and reported higher satisfaction due to reduced uncertainty and
improved productivity.

The integration of AI in various sectors in Nepal is reshaping organizational behavior,


enhancing job satisfaction, and raising important ethical considerations. By addressing these
challenges and opportunities thoughtfully, Nepalese organizations can leverage AI's benefits while
maintaining trust, fairness, and ethical standards.
Chapter III: Summary and Conclusion

3.1 Summary

The report titled "The Impact of Artificial Intelligence on Organizational Behavior"


explores the transformative effects of AI on various aspects of organizational dynamics. The
background section highlights how AI has emerged as a crucial force in reshaping organizational
operations, particularly in the post-COVID-19 era, where minimizing human interaction became
vital. AI has been integrated across various sectors, automating routine tasks and enabling
employees to focus on more complex and fulfilling activities. However, this integration also brings
challenges, such as the risk of job displacement and the erosion of human decision-making skills.
The report emphasizes the need for policies and strategies to manage AI integration effectively,
including education and training programs, regulations, and ethical guidelines.

The problem statement addresses the dual nature of AI's impact on organizations,
presenting both opportunities for enhanced efficiency and productivity, and challenges related to
job satisfaction and ethical concerns. It raises critical research questions, such as how AI influences
employee job satisfaction and motivation, and the ethical implications of AI in organizational
decision-making. These questions aim to uncover the comprehensive effects of AI on
organizational behavior and culture.

The objectives of the study are to investigate how AI technologies affect employee job
satisfaction and motivation, and to analyze the ethical implications of AI in decision-making
processes, particularly regarding organizational trust and culture. The significance of the study lies
in providing insights into the multifaceted impact of AI on organizational behavior, offering
strategies to maximize its benefits while mitigating potential risks.

The methods section outlines the sources of information and approaches used for analysis,
including literature reviews and empirical studies. Overall, the report underscores the importance
of a balanced approach to AI integration in organizations, promoting innovation and efficiency
while safeguarding ethical standards and maintaining human-centric work environments.
14

3.2 Conclusion

AI has the potential to revolutionize workplace environments by automating mundane


tasks, thus freeing employees to engage in more creative, strategic, and intellectually stimulating
activities. This shift can lead to increased job satisfaction and motivation, fostering a more dynamic
and productive work culture. However, the report highlights that the successful integration of AI
into organizations is not without its challenges and requires careful and thoughtful management.

One of the primary concerns discussed in the report is the ethical implications of AI. As AI
systems take on more significant roles in decision-making processes, issues such as algorithmic
bias, data privacy, and the potential for job displacement become increasingly critical. Algorithmic
bias can lead to unfair or discriminatory outcomes, undermining trust in AI systems and the
organizations that deploy them. Data privacy concerns are supreme as AI systems often require
vast amounts of personal data to function effectively. The report stresses the need for robust data
governance frameworks to protect individual privacy and ensure data is used ethically and
responsibly.

Job displacement is another significant challenge posed by the rise of AI. While AI can
create new job opportunities and industries, it can also render certain roles obsolete, leading to job
losses and economic disruption. The report suggests that organizations must proactively address
this issue by investing in retraining and upskilling programs for their workforce. By equipping
employees with the skills needed to thrive in an AI-augmented workplace, organizations can
mitigate the adverse effects of job displacement and foster a culture of continuous learning and
adaptation.

The report also discusses the importance of maintaining a positive organizational culture
in the age of AI. AI can impact organizational trust and culture in various ways. For instance, if
employees feel that AI systems are being used to monitor and control them excessively, it can lead
to a decrease in morale and trust in the organization. On the other hand, if AI is used transparently
15

and ethically, it can enhance trust and collaboration within the organization. The report emphasizes
the need for clear communication and transparency regarding the use of AI, as well as the
establishment of ethical guidelines to govern its deployment.

Moreover, the report highlights the need for a balanced approach to AI integration, one that
leverages the benefits of AI while prioritizing human values and ethical considerations. This
includes developing and implementing ethical AI frameworks that address issues of fairness,
accountability, and transparency. Organizations should also engage with a diverse range of
stakeholders, including employees, customers, and regulators, to ensure that their AI strategies
align with broader societal values and expectations.

The report calls for a holistic and integrated approach to managing AI in organizations. By
addressing the ethical, social, and economic challenges associated with AI, organizations can
harness its full potential to drive innovation and growth. This requires a commitment to ethical AI
practices, investment in employee development, and a focus on maintaining a positive
organizational culture. By doing so, organizations can navigate the complexities of AI integration
and create a work environment that is both technologically advanced and human-centric. This
balanced approach will ultimately lead to more sustainable and inclusive growth, benefiting both
organizations and society at large.
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