Authors - Edgar G. Cue, Felix JR Q. Pocong, Darwin Catalan, Santa M. Faltado, Ethel Reyes-Chua, Randy Joy M. Ventayen Abstract - This qualitative study examined business leaders' use of artificial intelligence (AI) in the workplace and employees' adaptation to AI-related changes. To gain a more thorough understanding of how various leadership practices are used, the employee experience, and the organizational response to the integration of AI into their operations, the researcher employed a qualitative research design. The research included business leaders and employees from organizations that have previously implemented or are currently implementing AI technologies in their operations as the study's subject population. Participants were selected using purposive sampling based on their direct involvement or knowledge of AI integration efforts within their organizations. The researcher collected data through interviews and coded it using thematic analysis to identify recurring themes and patterns related to leadership strategy, employee adaptation, organizational challenges, and workplace transformational changes resulting from the integration of AI. Major findings of this study indicate that, in implementing AI, leaders pre-dominantly used phased, strategic methods while considering employee readiness, continuous training, ethical governance, and partnerships to successfully implement AI within their organizations. On the other hand, employees exhibited both optimism and anxiety about AI adoption, with particular concerns about job security, technological skills, and organizational support. The study also established that transformational leadership, participative decision-making, transparent communication, a supportive leadership culture, and continuous capacity development are the most effective practices for facilitating employee adaptation and successful AI integration. The study concludes that successful AI integration requires not only technology but also a high degree of human-centered leader-ship, ethical accountability, and an organizational commitment to continuous development and change management to facilitate sustainable transformational change in organizations.
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