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<p>The rise of artificial intelligence (AI) has hit the traditional industry globally, resulting in an increasing number of employees has been replaced by AI. However, how AI-induced downsizing affects job seekers is unclear. Drawing upon signaling theory, this study aims to examine how and when AI-induced downsizing influences job seekers’ job pursuit intention. Using one scenario experiment (<i>N</i> = 240) and one laboratory experiment with FaceReader™ (<i>N</i> = 64), we find that AI-induced downsizing increases job seekers’ expected job insecurity and moral outrage, which leads to decreased job pursuit intention. External corporate social responsibility (CSR) strengthens the effect of AI-induced downsizing on job seekers’ expected job insecurity. Notably, the effect of AI-induced downsizing on job seekers’ moral outrage increases when organizations exhibit high external CSR. Additionally, we conduct a supplementary experiment study (<i>N</i> = 192) and verify that AI-induced downsizing triggers stronger psychological responses of employees compared to traditional downsizing. This study provides important implications for organizations to mitigate the negative effect of AI-induced downsizing on job seekers.</p>

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Will a fire at the gate bring disaster to the fish: The role of external corporate social responsibility in aggravating the risk of AI-induced downsizing on job seekers

  • 期刊论文

  • 发表日期：

    2026年2月18日

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  • Juan Wang,
  • Yang Liu,
  • Yi Xiang,
  • Chen Chen,
  • Ming Jia

摘要

The rise of artificial intelligence (AI) has hit the traditional industry globally, resulting in an increasing number of employees has been replaced by AI. However, how AI-induced downsizing affects job seekers is unclear. Drawing upon signaling theory, this study aims to examine how and when AI-induced downsizing influences job seekers’ job pursuit intention. Using one scenario experiment (N = 240) and one laboratory experiment with FaceReader™ (N = 64), we find that AI-induced downsizing increases job seekers’ expected job insecurity and moral outrage, which leads to decreased job pursuit intention. External corporate social responsibility (CSR) strengthens the effect of AI-induced downsizing on job seekers’ expected job insecurity. Notably, the effect of AI-induced downsizing on job seekers’ moral outrage increases when organizations exhibit high external CSR. Additionally, we conduct a supplementary experiment study (N = 192) and verify that AI-induced downsizing triggers stronger psychological responses of employees compared to traditional downsizing. This study provides important implications for organizations to mitigate the negative effect of AI-induced downsizing on job seekers.