Beyond AI Adoption: How AI Governance, Technology Trust, and Organizational Culture Shape Employee Empowerment in Local Government

Abstract

Abstract* Background The increasing adoption of artificial intelligence (AI) in public administration requires local government employees to possess not only technological competence but also sufficient empowerment to effectively utilize AI in delivering high quality public services. However, limited evidence explains how organizational readiness, public service values, learning culture, and technology related psychological factors jointly influence employees’ perceived work empowerment in AI enabled public organizations, particularly in emerging economies such as Indonesia. Methods This study employed a quantitative cross sectional survey involving 687 local government employees in Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the direct effects of AI Governance Preparedness, Public Service Orientation, Learning Culture, and Technology Trust on Perceived Work Empowerment, as well as the moderating role of Technology Trust. Results The findings indicate that AI Governance Preparedness, Public Service Orientation, Learning Culture, and Technology Trust all have positive and significant effects on Perceived Work Empowerment. Technology Trust emerged as the strongest predictor, followed by Learning Culture. In contrast, Technology Trust did not significantly moderate the relationships between AI Governance Preparedness and Perceived Work Empowerment or between Public Service Orientation and Perceived Work Empowerment. Moreover, Technology Trust significantly weakened the positive relationship between Learning Culture and Perceived Work Empowerment. Conclusions Employee empowerment in AI enabled public administration is shaped by the combined influence of organizational readiness, public service values, organizational learning, and employees’ trust in AI technologies. Technology Trust functions primarily as an independent psychological resource rather than as a consistent boundary condition that strengthens organizational factors influencing perceived work empowerment. Recommendations Local governments should strengthen trustworthy AI governance, organizational learning, and employees’ digital competencies through transparent implementation and continuous training. Future research should adopt longitudinal designs and extend comparisons across public sector institutions and countries.