Artificial Intelligence and Employee Well-Being: Examining Digital and Subjective Outcomes in the Indian Banking Sector

The integration of artificial intelligence (AI) into organizational processes has reshaped work dynamics, necessitating an understanding of its impact on employee well-being. While prior research has largely focused on productivity and efficiency, less attention has been devoted to the influence of AI on digital and subjective well-being, particularly in the banking sector. The purpose of this study is to examine how employees’ perceptions of AI deployment affect their well-being in the Indian banking industry. A quantitative, cross-sectional survey design was adopted, and data were collected from 214 banking professionals across public, private, and international banks using a purposive sampling technique. A structured questionnaire was developed from established scales, refined through expert review and a pilot test, and administered to digitally active employees. Structural equation modeling with SmartPLS was employed to validate the measurement and structural models, while reliability and descriptive analyses were conducted in SPSS. The findings indicate that favorable perceptions of AI significantly enhance both digital and subjective well-being. The effect was stronger for digital well-being, where positive perceptions reduced digital fatigue and improved balance, while a moderate positive impact was observed on subjective well-being, contributing to satisfaction and emotional stability. The study advances theory by integrating JD-R, technostress, and COR perspectives, while offering practical insights for managers and policymakers to ensure human-centered AI adoption.