Digital Leadership and Organizational Commitment in the Era of Artificial Intelligence: Evidence from Private Sector Firms

Abstract

This paper focuses on investigating how digital leadership is correlated with artificial intelligence (AI) adoption and organizational commitment in the companies of the Pakistani private sector. The research design used was a quantitative cross-sectional study and primary data (150 employees in Punjab) were gathered by use of structured questionnaire. Descriptive statistics, correlation analysis, and multiple regression were employed to provide the analysis of the data. The results indicate that digital leadership and AI adoption have significant and positive relationships with organizational commitment. The results of correlation are strong associations between the variables where digital leadership reported significant association with AI adoption (r = 0.62, p < 0.01) and organizational commitment (r = 0.58, p < 0.01). Further regression analysis shows that digital leadership (b = 0.45, p = < 0.001) and AI adoption (b = 0.35, p = < 0.001) have significant predictive power on organizational commitment, and account for 52% of its variance (R2 = 0.52). The research finds that digital leadership is a prevailing factor to encourage employee commitment, whereas AI adoption leads to increased efficiency at the workplace and positive attitudes towards employees. The research offers practical implications of the managers in the developing economies, the need to deploy leadership and technology to improve organizational performance.

Key Words: Leadership, Intelligence, Commitment and Private Sector.