Employees' Appraisals and Trust of Artificial Intelligences' Transparency and Opacity

Artificial intelligence (AI) is being increasingly used as a decision agent in enterprises. Employees' appraisals and AI affect the smooth progress of AI-employee cooperation. This paper studies (1) whether employees' challenge appraisals, threat appraisals and trust in AI are different for AI transparency and opacity. (2) This study investigates how AI transparency affects employees' trust in AI through employee appraisals (challenge and threat appraisals), and (3) whether and how employees' domain knowledge about AI moderates the relationship between AI transparency and appraisals. A total of 375 participants with work experience were recruited for an online hypothetical scenario experiment. The results showed that AI transparency (vs. opacity) led to higher challenge appraisals and trust and lower threat appraisals. However, in both AI transparency and opacity, employees believed that AI decisions brought more challenges than threats. In addition, we found the parallel mediating effect of challenge appraisals and threat appraisals. AI transparency promotes employees' trust in AI by increasing employees' challenge appraisals and reducing employees' threat appraisals. Finally, employees' domain knowledge about AI moderated the relationship between AI transparency and appraisals. Specifically, domain knowledge negatively moderated the positive effect of AI transparency on challenge appraisals, and domain knowledge positively moderated the negative effect of AI transparency on threat appraisals.