How do employees form initial trust in artificial intelligence: hard to explain but leaders help

Abstract

This study experimentally investigates initial trust formation in the organizational context of an artificial intelligence (AI) system in human resource management (HRM). Drawing on social exchange theory and leader-member exchange theory, we identify factors that contribute to initial trust in AI through cognitive and affective processing from the perspective of employees in the Chinese context. An online survey (N = 426) was conducted with a 2 (explanation of AI: without vs with) × 2 (trust in leaders: low vs high) design. Our findings demonstrate that initial trust plays a crucial role in AI adoption, and a trustworthy leader increases employees' AI trust and intention to adopt. Providing AI's benefits and risks moderates initial trust and the pathway to adoption. Moreover, familiarity with AI's application in HRM and organizational collectivism is also beneficial. Our findings suggest that organizations should prioritize cultivating initial trust in AI with employee-oriented strategies, including trusted leadership and supportive training resources.