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Transforming Leadership in the AI Era: A Mixed-Methods Analysis of AI’s Impact on Leadership Styles and Organizational Effectiveness

International Journal of Computing and Digital Systems | 2026

Paper Details

Authors: Alrayes A.

DOI: 10.12785/ijcds/1571205691

Journal: International Journal of Computing and Digital Systems

Year: 2026

Publisher: University of Bahrain

Document Type: Article

Open Access: All Open Access; Gold Open Access

Cited by: 0

Abstract

Artificial intelligence (AI) is rapidly transforming contexts of organizations and is impacting organizational effectiveness by changing leadership practices; however, still its effects have not been explored much. The study will use a mixed methods approach that includes a systematic review of more than 30 peer-reviewed articles (from 2018 to 2025) and three case studies of three organizations that have adopted AI (two in the technology sector, one in the health care sector) to examine the effects of AI on transformational, transactional, and servant leadership styles and their impact on productivity, innovation, and employee satisfaction. Review of the literature from Scopus, IEEE Xplore and PubMed shows that there was an increase in publication of 167% after 2023, presenting an increasing role of AI in leadership and unmet needs of servant leadership in SMEs and AI bias mitigation. Data collected through case studies, interviews and surveys are analysed by thematic analysis and statistical methods (ANOVA, Pearson correlation) from January to June 2025. Early results indicate that the use of AI improves productivity (up to 40% managerial time saved), innovation (up to 15% in the number of patents filed), and moderates the satisfaction benefits (up to 22%). Ethical supervision is required with the algorithmic bias and workforce resistance. The results add to the existing literature on the subject of human-AI collaboration in management, which shows how this partnership can influence the effectiveness of the organization and how the leadership style plays a role in this. The findings further identify leadership adaptability as a key moderator (r=0.71) and underline the need for AI-literacy development and ethical oversight to sustain gains in productivity, innovation, and employee satisfaction. © 2026, University of Bahrain. All rights reserved.

Keywords

and Mixed-methods Research; Artificial Intelligence; Leadership Styles; Organizational Effectiveness; Servant Leadership; Transactional Leadership; Transformational Leadership