Promoting Decent Work by Enhancing AI Literacy and Implementing AI Adoption for Better Adaptive Performance

The rapid advancement of Artificial Intelligence (AI) is reshaping the global workplace, demanding new competencies that integrate technical, cognitive, and adaptive skills. This study aims to examine how AI Literacy influences Adaptive Performance through AI Adoption as a mediating variable. A quantitative explanatory design was employed using Structural Equation Modeling (SEM) with SmartPLS 4, based on data collected from 201 employees and interns across various organizations in Indonesia. The findings reveal that AI Literacy has a significant and positive effect on both AI Adoption and Adaptive Performance. AI Adoption also demonstrates a strong positive impact on Adaptive Performance, confirming a partial mediation effect. The results highlight that employees with higher AI Literacy are more capable of adopting AI tools effectively, which enhances their adaptability in dynamic digital workplaces. These findings emphasize the critical role of AI Literacy in promoting Decent Work and achieving Sustainable Development Goals, particularly Goals 8 (Decent Work and Economic Growth) and 9 (Industry, Innovation, and Infrastructure). Strengthening AI Literacy across the workforce can therefore accelerate AI-enabled transformation and improve organizational resilience in the digital era.