Abstract:
This study aims to examine the impact of Big Five personality traits (openness, conscientiousness,
agreeableness, extraversion, and neuroticism) on AI leadership capability and subsequently AI
transformation. The mediating role of AI leadership capability between personality traits and AI
transformation was also examined. For which, data was collected from 184 managers working in
the IT sector of Pakistan. Partial least square structural equation modeling (PLS-SEM) facilitated
in performing of statistical techniques to test the hypothesized relationship. The study highlights
the significant association of agreeableness and conscientiousness with AI leadership capability.
The research further reports a significant negative association of extraversion and openness with
AI leadership capability. Conforming to expectations, AI leadership capability mediates the
relationship of personality traits (extraversion, neuroticism, and conscientiousness) with AI
transformation. In contrast, findings report insignificant mediation analysis between personality
traits (extraversion and openness) and AI transformation. In addition, the study highlights the
significant positive association of AI leadership capability with AI transformation. Pakistani IT
companies should invest in training workshops to enhance these traits and equip leaders with the
skills to manage AI transformation. Additionally, managerial employees should develop AI focused strategies considering psychological traits to facilitate this transformation. To date, no
research has been conducted concerning the relationship between personality traits, AI leadership
capability, and AI transformation. Additionally, this study is novel introducing two constructs, AI
leadership capability, and AI transformation. Thus, the present study increases our understanding
of the role personality traits play in developing AI leadership that will foster AI transformation
