The AI–Well-being Paradox in the Workplace: A Dual-Pathway Model of Employee Well-being, Engagement and Sustainable Organizational Performance

Authors

  • Dr. S. Gopi Srinivasa Rao, Dr. M. Sudha Rani, Ms. Nelakuditi Krishna Veni, Dr. Y V Naga Kumari

Abstract

 

 

 

Artificial intelligence (AI) is changing how employees perform tasks, make decisions, communicate, learn and demonstrate performance. The central problem is that AI can operate simultaneously as a job resource and a job demand: it may improve autonomy, task assistance, learning, information access and creativity while also increasing technostress, insecurity, cognitive overload, monitoring pressure and digital spillover. This article develops and empirically tests the AI–Well-being Paradox, linking AI-enabled job resources and AI-induced job demands to employee well-being, employee engagement and sustainable organizational performance, with digital boundary control as a protective contextual resource. The study analyzes 600 employee records from the supplied dataset. Composite scores were calculated from seven multi-item constructs and analyzed using reliability and validity diagnostics, controlled regression with HC3 robust standard errors, 1,000-resample bootstrap mediation and sequential mediation, and interaction analysis. All seven constructs demonstrated satisfactory measurement quality (Cronbach’s α=.844–.875; composite reliability=.895–.909; AVE=.656–.700), and the maximum HTMT ratio was .727. AI resources positively predicted well-being (β=.441, p<.001), whereas AI demands negatively predicted well-being (β=−.348, p<.001). Well-being predicted engagement (β=.568, p<.001), and engagement predicted sustainable performance (β=.567, p<.001). The indirect and sequential pathways were significant. Digital boundary control significantly moderated the AI-demand pathway (β=.110, p=.002), but the resource × boundary-control interaction was not significant (β=.008, p=.846). Thus, 11 of the 12 hypotheses were supported. Importantly, although the dataset contains Wave1_Date, Wave2_Date and Wave3_Date fields, it does not contain distinct wave-specific item responses; therefore, the present statistical analysis is cross-sectional and does not claim a genuine longitudinal three-wave test.

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Published

2007-2026

How to Cite

Dr. S. Gopi Srinivasa Rao, Dr. M. Sudha Rani, Ms. Nelakuditi Krishna Veni, Dr. Y V Naga Kumari. (2026). The AI–Well-being Paradox in the Workplace: A Dual-Pathway Model of Employee Well-being, Engagement and Sustainable Organizational Performance. International Journal of Economic Perspectives, 20(9), 89–105. Retrieved from https://ijeponline.com/index.php/journal/article/view/1161

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Articles