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The Impact of AI-Powered Tools on Employee Well-Being and Mental Health: Opportunities and Challenges

Jul 2026 · Journal of human resource & leadership · Vol 11, pp. 64-89 · 0 citations · 10 references

TL;DR

The study revealed the beneficial effects of AI on employee welfare in terms of productivity, reduction of unnecessary work, enhancement of flexibility in the workplace and employee satisfaction, but problems related to employment insecurity, surveillance, loss of privacy, loss of autonomy and continuous adaption to new technologies cannot be underestimated.

Abstract

Purpose: This paper discusses the impact of AI-based technologies on the workplace in terms of well-being and mental health. The paper will also involve the discussion of the possibilities and challenges of using AI, namely in the framework of the automation of jobs powered by AI, workplace surveillance, mental health support offered by AI, and the introduction of organizational support. Methodology: A sequential mixed method was employed to be explained in an explanatory manner. Quantitative data on 100 employees of the organizations which use AI technologies and qualitative data on the same issue were collected with the help of the survey method and semi-structured interviews respectively. The outcomes were summarized, synthesized to derive conclusions and a better understanding of what employees can do with AI-powered tools. Findings: The study revealed the beneficial effects of AI on employee welfare in terms of productivity, reduction of unnecessary work, enhancement of flexibility in the workplace and employee satisfaction. However, problems related to employment insecurity, surveillance, loss of privacy, loss of autonomy and continuous adaption to new technologies cannot be underestimated. The findings as well revealed that the organizational environment is a fundamental component in determining the positive experiences of AI technologies among the workers, by way of excellent organizational support, training initiatives, and furnishing entry to psychological support systems. Unique Contribution to Theory, Practice, and Policy: It is appreciated and highly acknowledged as providing extended JD-R Theory and TAM theories, which continues the insights into AI and employee well-being. In order to restrain any negative outcomes, organisations need to adopt human-focused strategies towards AI, improve employee training, establish ethical governance of AI, and offer mental health assistance to employees. It provides practical recommendations to organizations and human resources and policy advice on how AI can be used ethically, protect the employees and develop their workforce.

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