Artificial Intelligence and Workplace Psychological Well-being: a Review of Evidence on Job Insecurity and Occupational Stress in IT and ITES Sectors

Abstract

Artificial intelligence (AI) has moved from a specialist technology to an increasingly routine component of contemporary organizational work. In information technology (IT) and information technology enabled services (ITES), AI-supported coding, analytics, service automation, content generation, monitoring and decision support are changing both the distribution of tasks and the expectations placed on employees. The psychological consequences of this transition are less settled than its productivity narrative. This review synthesizes literature published primarily between 2020 and 2025, supported by established work on job insecurity, occupational stress, technostress, job demands and resources, conservation of resources, and employee well-being. The evidence indicates that AI does not produce a uniform psychological outcome. It can reduce repetitive effort, improve task performance and create opportunities for higher-value work, while at the same time generating uncertainty about role continuity, pressure to acquire new skills, cognitive overload, reduced autonomy and intensified perceptions of monitoring. Recent studies show that perceived AI competence and automation potential can increase job insecurity; AI-related technostress may operate through anxiety and other affective responses; and organizational support, technical self-efficacy, career resilience, responsible implementation and task redesign can alter these relationships. A recurring limitation is the separation of constructs that are closely connected in actual employee experience. Job insecurity is often examined without occupational stress, while well-being studies may emphasize positive work redesign without sufficiently examining perceived threat. The review therefore proposes an integrated pathway in which AI exposure and AI-related perceptions influence work demands and resources, which shape job insecurity and occupational stress, with individual and organizational resources acting as important boundary conditions. The synthesis points to a clear need for longitudinal, sector-specific and context-sensitive research among IT and ITES professionals, particularly in India, where AI adoption is occurring alongside rapid skill transformation and evolving employment structures.