Algorithmic Anxiety in the Modern Workplace: Understanding and Addressing the Human Cost of AI Integration

Abstract: Artificial intelligence deployment in contemporary workplaces represents a fundamental disruption to the psychological contract between employers and employees. This article synthesizes emerging research on "algorithmic anxiety"—a compound psychological phenomenon encompassing identity erosion, trust violations, and existential uncertainty about human value in automated work environments. Drawing on psychological contract theory (Rousseau, 1995), conservation of resources theory (Hobfoll, 1989), self-determination theory (Deci & Ryan, 2000), and technostress frameworks (Tarafdar et al., 2007), we examine how AI-mediated decision-making systematically undermines worker autonomy, competence, and relatedness. Analysis of organizational responses reveals that current implementation approaches prioritize technical optimization while treating human impacts as secondary concerns, generating resistance, cynicism, and disengagement (Kellogg et al., 2020). Evidence-based alternatives demonstrate that human-centered AI integration—characterized by transparent communication, participatory governance, meaningful reskilling, and dignity-preserving design—can achieve technological goals while maintaining workforce wellbeing (Raisch & Krakowski, 2021).

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.