This research paper explores the intersection of transformational leadership and artificial intelligence (AI) in the field of industrial engineering, focusing on their combined impact on work culture and employee mindset. As AI technologies increasingly integrate into industrial operations, leaders face the challenge of creating a work environment that embraces technological advancements while managing workforce adaptation, evolving job roles, and cognitive shifts. Transformational leadership, with its emphasis on vision, motivation, and personalized guidance, plays a crucial role in this transition. The paper investigates how transformational leadership strategies can positively shape employee attitudes, enhance adaptability, and foster team cohesion in AI-driven industrial settings, ultimately creating a resilient and innovative workforce.