Intimate Machines, Disturbed Minds: Managing the Affective Cost of AI

As artificial intelligence (AI) systems increasingly simulate empathy and engage relationally with users, they begin to influence the affective fabric of organizations. Drawing on insights from information systems research, organizational science, and management theory, we argue that existing theoretical and governance frameworks are ill-equipped to account for these developments. We distinguish external regulation from internal governance and propose a preventive–corrective framework for addressing affective costs across work contexts. Building on this framework, we outline a research agenda that challenges prevailing assumptions in management and strategy, calling for renewed attention to affect, relational dynamics, and emotional architectures in organizations shaped by affective AI.