The Effect of AI Infrastructure Capability on Employee Performance: The Mediating Role of Employee Empowerment in the UAE Construction Industry

Abstract

Artificial Intelligence (AI) is increasingly recognized as a transformative force in enhancing employee performance and organizational effectiveness. However, its impact remains contingent on the integration of complementary organizational capabilities rather than standalone technological adoption. Therefore, this study examines the relationship between AI infrastructure capability and employee performance in the UAE construction industry, while investigating the mediating role of employee empowerment. A quantitative survey design was employed, with 350 valid responses collected from project managers, construction managers, site engineers, and architects across construction companies in Abu Dhabi, Dubai, and Sharjah. Data was analyzed using the Statistical Package for the Social Sciences (SPSS) and Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate a significant relationship between AI infrastructure capability and employee performance, while employee empowerment has a significant positive relationship with employee performance. Furthermore, employee empowerment significantly mediates the relationship between AI infrastructure capability and employee performance. The study extends the Resource-Based View and Social Exchange Theory by demonstrating the importance of employee empowerment in translating AI capability into improved employee performance. Practically, the findings suggest that construction organizations should complement AI investments with employee empowerment initiatives, including participation in decision-making, communication, trust, and motivation, to maximize the benefits of AI adoption and improve employee performance.