Abstract
The integration of Artificial Intelligence (AI) into the workplace has fundamentally transformed human resource dynamics and operational processes, particularly within the fast-paced Information Technology (IT) sector. This study investigates the influence of AI on employees' job performance in IT companies located in Coimbatore city, a rapidly emerging tech hub in Tamil Nadu, India. The rapid adoption of AI technologies—ranging from automated decision support systems to generative AI models—has created a paradigm shift in how tasks are executed. While AI offers substantial benefits such as enhanced task efficiency, improved decision-making accuracy, and increased opportunities for innovation, it also presents significant challenges. These challenges include AI-induced job insecurity, technostress, and the need for continuous upskilling, which can negatively impact employee morale and adaptive performance. The primary aim of this research is to empirically evaluate these multidimensional impacts. Using a descriptive research design and a simple random sampling method, primary data were collected from 150 IT professionals in Coimbatore via a structured questionnaire. The questionnaire evaluated demographics alongside four key dimensions: task efficiency, decision-making capabilities, innovation, and AI adoption challenges. Statistical techniques, including Percentage Analysis, Descriptive Statistics, Correlation Analysis, Analysis of Variance (ANOVA), and Multiple Regression Analysis, were employed to analyze the data. The findings reveal a significant positive correlation between AI-driven task efficiency and overall job performance. Furthermore, multiple regression analysis indicates that while task efficiency and innovation significantly augment performance, the challenges associated with AI adoption present a slight, albeit statistically non-significant, friction on performance outcomes. The study underscores that AI should be viewed not merely as an automation tool but as a collaborative partner that augments human cognitive capabilities. The results suggest that IT organizations in Coimbatore must adopt human-centered AI strategies, fostering an environment where employees are trained and supported to work alongside AI, thereby mitigating hindrances like technostress and job insecurity. By addressing these factors, organizations can leverage AI to achieve sustainable competitive advantages and foster continuous employee creativity. The study concludes with actionable suggestions for IT management and outlines the future scope for research in human-AI collaboration.