AI is helpful – but can also cause technostress

How does Artificial Intelligence (AI) affect employees’ stress levels and performance? New research from Aarhus BSS shows that AI can have both beneficial and harmful effects – highlighting the complex relationship between technology and the work environment. These insights are essential for leaders aiming to integrate AI into their organisations in a sustainable way.

AI can act as both a challenge and a hindrance, affecting employees' psychological responses and task performance in distinct ways. Photo: Adobe Stock

As advanced technologies like AI become more prevalent in the digital workplace, the term "technostress" has emerged to describe the stress employees experience due to technology use. Often viewed as the dark side of technology, technostress is usually associated with unintended and problematic consequences for employees. However, stress is not always negative—it can have positive effects in certain contexts, depending on how an employee perceives and responds to it.

Researchers Surabhi Verma and Ana Alina Tudoran from the Department of Economics and Business Economics at Aarhus University, along with colleagues Vibhav Singh and Som Sekhar Bhattacharyya, conducted a study to explore how AI influences employee stress and performance. They surveyed 299 employees in India who regularly use AI in their work tasks. The study found that AI can act as both a challenge and a hindrance, affecting employees' psychological responses and task performance in distinct ways.

"Technostress in the workplace can manifest in two forms: as a challenge that motivates employees to develop new skills, or as a hindrance that leads to frustration and burnout."​

Associate Professor Surabhi Verma, Department of Economics and Business Economics, Aarhus BSS, Aarhus University

The research team employed the so-called challenge–hindrance stressors model to assess the dual impact of Responsible AI (RAI) on employees. This model distinguishes between the following types of stressors:​

  • Challenge stressors: These are positive stressors that employees perceive as opportunities for personal growth and achievement, as employees see RAI as beneficial, providing more effective and efficient decision-making.
  • Hindrance stressors: These are negative stressors that obstruct progress and performance, as employees appraise the uncertainty, frequent changes, and complexity of RAI as obstacles to accomplishing their job tasks.

By applying this framework, the researchers identified how different aspects of RAI contribute to either beneficial or detrimental outcomes for employees. ​

Surabhi Verma explains, "Technostress in the workplace can manifest in two forms: as a challenge that motivates employees to develop new skills, or as a hindrance that leads to frustration and burnout."​

What is Responsible AI (RAI)?

Responsible AI refers to the development and deployment of AI systems in a manner that is ethical and aligned with the societal values of stakeholders.

It ensures that AI technologies are designed with consideration for human factors like employees’ behaviour, values and ethics.

Navigating the Double-Edged Sword of AI in the Workplace

Previous studies on workplace stress have primarily focused on general stressors and the detrimental effects of AI-driven stress without differentiating their nature. This research highlights that RAI's impact is a double-edged sword. While it can enhance productivity and innovation, it can also lead to stress and exhaustion if not managed properly. The relationship between employees and RAI is complex, necessitating a balanced consideration of both its beneficial and detrimental aspects.​

Ana Alina Tudoran adds, "Investigating challenge and hindrance stressors is crucial to understand how employees interact with responsible AI in a digital workplace, as it helps identify the factors that promote well-being and those that may cause strain."​

These findings underscore the importance of thoughtful RAI implementation. By recognizing the dual nature of technostress, business leaders can develop strategies that leverage the positive aspects of RAI while mitigating its potential negative impacts. This approach not only enhances employee creativity and reduces exhaustion but also optimizes task performance, ensuring that the integration of RAI into the workplace is both effective and sustainable.

Facts

We strive to comply with Universities Denmark’s principles for good research communication. For this reason, we provide the following information as a supplement to this article:

Type of study

Empirical cross-sectional survey study based on the challenge–hindrance stressors model

External partners Great Lakes Institute of Management (India); IIM Nagpur (India)
External funding

None

Conflict of interests None
Other No
Link to scientific article Elevating employees’ psychological responses and task performance through responsible artificial intelligence
Contact information

Associate Professor Surabhi Verma, suv@econ.au.dk;
Associate Professor Ana Alina Tudoran, anat@econ.au.dk