‘Thoughtful’ AI application can revolutionise well-being, productivity in the workplace

By Iram Ahmed

AI in HR: In today’s rapidly-evolving business landscape, organisations face numerous challenges, including technological advancements, fierce competition for talent, and growing concerns about employee well-being. In this environment, a new concept is gaining traction as a powerful tool for success: psychological capital, or PsyCap. Focused on fostering positive psychological traits in employees, PsyCap is quickly becoming a game-changer for companies looking to stay competitive, engage their workforce, and create a productive work environment.

PsyCap refers to a set of psychological strengths that employees can cultivate to improve their performance at work. These traits include self-efficacy, optimism, hope, and resilience. As workplaces continue to evolve, focusing on building PsyCap is becoming increasingly crucial for organisations seeking to boost performance, improve employee well-being, and reduce turnover — all factors that contribute to long-term success.

In a world where mental health challenges, rapid technological changes, and the need for innovation are common, nurturing PsyCap offers a sustainable solution that helps employees thrive amidst these complexities. As organisations recognise the importance of psychological well-being, it's clear that PsyCap will play a central role in future workplace strategies. As workplaces become more complex, the role of Artificial Intelligence (AI) in promoting employee well-being is gaining significant attention. Traditionally known for its applications in automation and data analysis, AI is now emerging as a powerful tool to enhance mental health, engagement, and overall performance.

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AI in HR: Promote well-being

AI can play a vital role in supporting each of the four dimensions of PsyCap. AI can foster optimism by assisting in setting and tracking progress toward personal and professional goals, promoting a positive outlook. By analysing data, AI systems can highlight achievements and suggest areas for improvement, helping employees maintain an optimistic perspective about their growth and contributions.

AI tools can also facilitate personalised well-being assessments, tailoring recommendations for stress management techniques, mindfulness practices, or lifestyle interventions based on individual needs and preferences.

AI can cultivate hope by helping employees envision multiple pathways to achieving their objectives by offering data-driven insights and alternative solutions. This capability enables employees to adapt to challenges and remain hopeful about achieving their goals. AI-powered applications can facilitate personalised well-being support, offering virtual coaching or counseling services, which can enhance employees' sense of hope regarding their personal and professional development.

AI-driven analytics can help build resilience by identifying patterns in employee behaviour and performance, allowing organisations to proactively address potential burnout or disengagement. By monitoring workload and stress indicators, AI systems can suggest interventions to help employees build resilience against workplace challenges. For example, AI-powered assistants can communicate with employees, detect signs of mental health distress, and suggest potential resources, maintaining confidentiality.

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As AI technology continues to evolve, its potential to enhance PsyCap will only grow. These tools will become more sophisticated, providing hyper-personalised support to help employees develop new skills, navigate obstacles, and stay resilient in the face of adversity. Ultimately, AI will play a central role in fostering mental well-being and psychological strength in the workplace. For organisations, investing in AI technologies that support PsyCap not only benefits employees but also drives increased productivity, engagement, and retention. As workplace challenges become more complex, AI offers a critical advantage in helping employees develop the psychological resources needed to thrive.

HR and AI: The risks

However, while AI brings numerous benefits, it’s important for companies to be mindful of potential risks.

Overreliance on AI could lead to issues such as the erosion of traditional collaboration methods and information overload, which might negatively impact mental health.

To mitigate these risks, organisations should design roles that promote human-AI collaboration, ensuring AI complements human skills rather than replacing them. To create a balanced and healthy work environment, companies should limit AI usage to exclude tasks that require creativity or emotional depth. Additionally, providing opportunities for employees to share best practices and fostering in-person interactions can ensure that AI serves as a supportive tool rather than a replacement for human connection.

When implemented thoughtfully, AI has the potential to significantly enhance employees’ Psychological Capital, providing them with personalised support for skill development, goal achievement, and overall well-being. By integrating AI into the workplace while maintaining a focus on human-centered practices, organisations can create an environment that promotes engagement, satisfaction, and productivity — ultimately helping both employees and businesses succeed in today’s fast-paced, ever-changing world.

Dr. Iram Ahmed is an assistant professor in the Department of Management Studies, Inderprastha Engineering College, Ghaziabad. She holds a PhD in organisational behaviour and an MBA with human resource management as major. Her research and consulting interests include psychological capital, work behaviour, and engagement.

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