Abstract
As artificial intelligence (AI) becomes increasingly embedded in organizational development, understanding how leadership shapes employee responses to AI is critical for fostering workplace innovation. Drawing on trait activation theory, this study develops a theoretical model in which employee AI trust enhances innovative performance through AI crafting. Paternalistic leadership serves as a situational moderator, while the leader's AI opportunity perception functions as a higher-order moderator. A three-wave survey was conducted with 523 employees from 14 AI-intensive manufacturing firms in China. Results show that the interaction between AI trust and paternalistic leadership positively predicts both AI crafting and innovative performance. In addition, AI crafting mediates the effect of the interaction term on innovative performance. Furthermore, the leader's AI opportunity perception moderates this interactive effect: when this perception is high, the positive impact of AI trust and paternalistic leadership on AI crafting is significantly stronger; when it is low, the effect weakens. These findings contribute to the literature by clarifying the situational and cognitive conditions under which AI trust promotes innovation, thereby extending trait activation theory to AI-enabled workplaces and offering actionable insights for leadership development in the intelligent era.