Organizational Change Management and Human Capital Development in AI-Driven Manufacturing Transformation: Workforce Dynamics and Skills Strategies

Abstract

Organizational change management and human capital development represent critical yet under-studied dimensions of AI-driven manufacturing transformation. While technological capabilities receive substantial attention, workforce readiness and organizational culture fundamentally determine transformation success. This study examines organizational change dynamics, workforce implications, and human capital strategies in AI-enabled manufacturing through mixed-methods investigation combining quantitative assessment (n=400) with in-depth qualitative analysis (n=45) across Chinese and emerging-economy manufacturing sectors. Results reveal that organizational readiness predicts 38% of transformation variance independently, with change management effectiveness accounting for 41.7% of successful implementations. The study identifies five critical change management barriers: resistance to change (61% of firms), limited management understanding of AI implications (58%), inadequate change communication strategies (64%), insufficient change capacity building (52%), and technology-human misalignment (55%). Human capital analysis shows that 68% of manufacturing firms face critical skills gaps, yet only 32% have developed formal reskilling programs. Career transition anxiety affects 71% of production workers, with displacement fears concentrated among mid-career professionals (ages 35–50). The study proposes integrated change management frameworks combining change readiness assessment, stakeholder engagement strategies, skills development pathways, and psychological support mechanisms. Results demonstrate that organizations implementing comprehensive change management achieve 34% higher transformation success rates and experience 28% lower employee turnover compared to technology-first approaches. Policy recommendations emphasize coordinated workforce development programs, tripartite collaboration between government–industry–education sectors, and worker transition support systems ensuring equitable distribution of transformation benefits.