Title: Artificial intelligence surveillance in entrepreneurship and small businesses: how fairness and transparency shape employee stress and job satisfaction

Authors: Manuha Nagpal; Nivedita Singh; Srinivasa Krishna Prasad Buravelli; Neelu Tiwari; Neetu Rani

Addresses: GL Bajaj Institute of Technology and Management, Plot No. 2, APJ Abdul Kalam Rd., Knowledge Park III, Greater Noida, Uttar Pradesh 201306, India ' GL Bajaj Institute of Technology and Management, Plot No. 2, APJ Abdul Kalam Rd., Knowledge Park III, Greater Noida, Uttar Pradesh 201306, India ' Onward Technologies, 5 Revere Dr, Suite 100, Northbrook, IL 60062, USA ' Amity University, Amity Rd., Sector 125, Noida, Uttar Pradesh 201301, India ' Maharaja Ranjit Singh, Punjab Technical University, 5WGC+HVV, Dabwali Rd., Lal Singh Nagar, Bathinda, Punjab 151001, India

Abstract: This study employed organisational justice theory to understand both the intensity of the AI systems' surveillance and the perceived invasiveness on employee outcomes, mediated by employees' perceived fairness and transparency, placing trust in AI as moderating variable. Using a qualitative research design with small business employees and entrepreneurs, this study found the intensity and perceived invasiveness of AI-systems surveillance drastically reduced employees' perceived fairness and transparency increased stress and reduced job satisfaction. However, the presence of a high degree of trust in the AI systems not only ameliorated the impact of the intensity of the surveillance activity and perceptions of fairness, but it also extended the literature on organisational justice theory in small business, technologically-mediated work contexts. The research recognises that small businesses need to foster transparent communication, procedural fairness, and trust, to buffer against the negative impacts of AI entities surveilling the workforce.

Keywords: artificial intelligence; surveillance; invasiveness; fairness; transparency; job satisfaction; small business; entrepreneurship.

DOI: 10.1504/IJESB.2026.155700

International Journal of Entrepreneurship and Small Business, 2026 Vol.59 No.1, pp.97 - 120

Received: 01 May 2025
Accepted: 22 May 2025
Published online: 11 Aug 2026 *

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