Paper
Paper
With artificial intelligence (AI) replacing humans at work, creative work is becoming increasingly important for humans. Although AI may improve employees' innovation behavior, some evidence suggests a negative effect through employees' psychological well-being. To address these contradictory arguments, this study investigated the double-edged sword effect of AI-assistant intelligence on employees' innovation behavior based on the transactional model of stress. Two scenario-based experiments reveal that an AI assistant characterized as high intelligence has a positive indirect effect on employees' AI-enabled innovation behavior via creative self-efficacy, while the indirect effect is stronger when organizational AI readiness is higher than when it is lower. However, the same AI assistance has a negative indirect effect on employees’ AI-enabled innovation behavior via STARA awareness when organizational AI readiness is low. These findings have pivotal implications for both management theory and practice.