This research explores how organizational leadership and workplace culture influence employee anxiety regarding AI-driven job displacement. While frequent use of AI tools typically doubles a worker’s fear of being replaced, high-quality management practices—such as transparent communication, wellbeing support, and psychological safety—can significantly reduce this concern. The findings suggest that the way managers frame the transition determines whether staff view AI as a helpful tool for augmentation or a threat of substitution. When leaders prioritize respect and skill-building pathways, they mitigate negative outcomes like burnout and low engagement. Ultimately, the study concludes that managerial quality is a vital component of successful technology adoption, acting as a buffer that protects both worker mental health and organizational productivity.

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