Following social cognitive theory, the current study investigated the impact of artificial intelligence (AI) on employees' productivity in the healthcare sector. AI significantly facilitates the management of hospitals to vigilantly assess employees’ productivity and accurately analyze employees' characteristics, such as attitude, emotion and behavior. With the underlying mechanism of employee mental health and well‐being, and knowledge sharing, the study has considered beneficial and harmful perspectives of AI in the workplace. The study also hypothesizes the important moderating role of technological leadership. The data was collected from 184 doctors in Pakistan's major hospitals. Partial least squares (PLS) results support a direct relationship between AI and employee productivity. The findings also supported the underlying mechanism of knowledge sharing and mental health and well‐being in the relationship between AI and employee productivity. However, the technological leadership moderating effect was found to be insignificant. It opens an important avenue for this further research and future directions.

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