Mind Over Machine: Understanding Engineers’ AI Opportunity and Risk Perceptions through Psychological Capital

Authors

  • Deeksha Singh MBA Dept. Model Institute of Engineering and Technology (MIET)
  • Parul Sharma Associate Professor School of Management, Model Institute of Engineering and Technology
  • Shelleka Gupta TBS, University of Jammu
  • Bonia Sharma TBS, University of Jammu

DOI:

https://doi.org/10.16920/jeet/2026/v39is2/26052

Keywords:

Artificial Intelligence; Psychological Capital; Unemployment Risk Perception; Cognitive Appraisal Theory; Technological Disruption.

Abstract

The rapid spread of artificial intelligence (AI) is reshaping the workplace, generating responses that range from optimism about new opportunities to concerns over job insecurity. This study explores how engineers perceive AI opportunities (AIOP) and their associated unemployment risk perceptions (URP), with a focus on the mediating role of psychological capital (PsyCap). PsyCap comprising resilience, self-efficacy, optimism, and hope is positioned as a vital psychological resource enabling engineers to adapt to AI-driven disruptions, drawing upon Cognitive Appraisal Theory. The analysis was conducted using SmartPLS-4 with reliability indices (α, CR, AVE) and SRMR-based model fit. The sample consisted of 221 engineers (60% male, 50% aged 23–33 years) from Punjab, J&K and NCR-Delhi.

The findings indicate that Psychological Capital exerts a significant indirect effect, confirming its mediating role between AIOP and URP. Higher levels of PsyCap appear to lessen anxiety regarding technological displacement by enabling individuals to perceive AI as an opportunity rather than a threat. These insights emphasize that preparing engineers for a digital and sustainable world requires more than technical upskilling; it also necessitates strengthening psychological preparedness. By integrating psychological empowerment with digital competence, the study highlights a dual pathway toward building resilient, future-ready engineers aligned with the vision of Industry 5.0. The results hold practical implications for educators, industry leaders, and policymakers in designing holistic strategies that merge emerging technologies with future skills to foster sustainable employability.

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Published

2026-02-17

How to Cite

Singh, D., Sharma, P., Gupta, S., & Sharma, B. (2026). Mind Over Machine: Understanding Engineers’ AI Opportunity and Risk Perceptions through Psychological Capital. Journal of Engineering Education Transformations, 39(Special Issue 2), 433–443. https://doi.org/10.16920/jeet/2026/v39is2/26052

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