ARTIFICIAL INTELLIGENCE COMPETENCIES AND EMOTIONAL INTELLIGENCE AS DRIVERS OF AI-DRIVEN TRANSFORMATIONAL LEADERSHIP: IMPLICATIONS FOR EMPLOYEE WORK ENGAGEMENT

The rapid advancement of Artificial Intelligence (AI) is fundamentally transforming contemporary leadership practices, organizational structures, and employee management approaches. As organizations increasingly integrate AI technologies into strategic decision-making, leaders are required to develop new competencies that combine technological understanding with essential human-centered capabilities. This study explores the role of Artificial Intelligence competencies and Emotional Intelligence in shaping AI-driven transformational leadership and enhancing employee work engagement. Drawing upon Transformational Leadership Theory, Human Capital Theory, and the emerging concept of AI-augmented leadership, this conceptual study examines how leaders’ ability to understand and utilize AI technologies interacts with emotional intelligence competencies to influence employee motivation, trust, psychological safety, and engagement. The study argues that successful AI-driven leadership does not depend solely on technological expertise but requires a balanced integration of AI competencies and human emotional capabilities. The proposed framework suggests that AI competencies enable leaders to make data-informed decisions, optimize organizational processes, and develop innovative strategies, while Emotional Intelligence strengthens interpersonal relationships, empathy, communication, and employee acceptance of AI-driven transformation. Together, these capabilities create a new leadership paradigm capable of addressing the challenges of digital transformation. The study contributes to the growing literature on digital leadership by proposing an integrated model explaining how technological and emotional competencies jointly influence employee work engagement in AI-enabled organizations. The findings provide practical implications for organizational leaders, human resource managers, and policymakers seeking to develop effective leadership models for the artificial intelligence era.