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All Journal DIJB (Diponegoro International Journal of Business)
Muhammad Fajar Wahyudi Rahman
Department of Digital Business, State University of Surabaya Jl.Ketintang No.2, Kec.Gayungan, Surabaya, Indonesia 60231
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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From fear to action: Mediating effect of career anxiety between fear of AI replacement and upskilling intention among Indonesian undergraduates Elsa Rahmatika Devi; Regina Eki Salsabila; Fadhil Arrasyid; Muhammad Fajar Wahyudi Rahman
Diponegoro International Journal of Business Vol 8, No 2 (2025)
Publisher : Department of Management | Faculty of Economics and Business | Universitas Diponegoro

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14710/dijb.8.2.2025.195-207

Abstract

The rapid advancement of artificial intelligence (AI) has intensified concerns about job displacement, particularly among undergraduate students preparing to enter the labor market. This study examines the effect of fear of AI replacement on upskilling intention, with career anxiety as a mediating variable. Using a quantitative approach, data were collected through an online survey from 267 Indonesian undergraduate students in social sciences and humanities disciplines with prior AI experience, of which 202 valid responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that fear of AI replacement has a positive and statistically significant effect on both upskilling intention and career anxiety. In addition, career anxiety positively and significantly influences upskilling intention and mediates the relationship between fear of AI replacement and upskilling intention. These findings indicate that fear of AI replacement acts not only as a direct motivational driver but also indirectly encourages upskilling intention through career anxiety as an adaptive psychological response. This study contributes to the literature by highlighting the adaptive role of career anxiety in transforming AI-related fear into proactive upskilling intention among undergraduate students and offers practical implications for higher education institutions and policymakers in responding to AI-driven labor market change.
Co-Authors Elsa Rahmatika Devi Fadhil Arrasyid Regina Eki Salsabila