Sustaining HR Practice through Artificial Intelligence: Augmenting Workplace Happiness, Well-Being and Productivity in Pune’s Financial Sector

Abstract : The rapid diffusion of Artificial Intelligence (AI) across organisational functions has fundamentally altered the nature of work, decision-making, and employee organisation relationships. In the financial sector, AI adoption has accelerated due to increasing regulatory complexity, competitive pressures, and the need for data-driven efficiency. While existing studies have extensively examined the operational and productivity-related outcomes of AI, comparatively limited scholarly attention has been paid to its implications for workplace happiness, employee well-being, and the sustainability of human resource (HR) practices. This gap is particularly evident in the Indian context, where the financial sector is undergoing simultaneous digitalisation and workforce transformation. The present study explores how AI-enabled HR practices influence workplace happiness, employee well-being, and productivity in Pune’s financial sector. Grounded in Human Resource Management and Organisational Behaviour perspectives, the study adopts a quantitative research approach supported by an extensive review of contemporary literature. Primary data were collected from employees working in banks, non-banking financial companies, and fintech organisations that have integrated AI into HR functions. The findings indicate that AI contributes positively to workplace happiness when deployed as an augmentative tool that enhances job autonomy, transparency, and skill development. However, the study also reveals that excessive algorithmic control and inadequate communication can heighten stress and job insecurity, adversely affecting well-being. The research underscores the critical role of ethical HR leadership and supportive organisational culture in mediating employee responses to AI. By situating the analysis within Pune’s evolving financial ecosystem, the study contributes to the discourse on sustainable HRM and offers actionable insights for designing human-centric AI strategies that balance technological advancement with employee happiness and long-term productivity.