Artificial Intelligence (AI) is undoubtedly one of the most significant technological breakthroughs that have taken place in this century and that are altering, to a varying degree, the nature of industries, business models, and organizational cultures worldwide. AI technology has found applications in almost every sector from banking to education, from healthcare to transportation, where it is being employed to carry out tasks, obtain insights from data, and enhance customer experiences. Banks are implementing AI chatbots that are capable of understanding their customers and providing them with financial services tailored to their individual needs; hospitals are carrying out predictive analytics to ascertain the quality of care provided to patients; and airlines are operating AI-based algorithms for pricing and customer care that are constantly changing according to market demand. These are only some instances of AI's impact on service delivery and operational efficiency across the board.

In India, artificial intelligence has been incorporated into the daily work activities of the multinational companies (MNCs) located in and near the Delhi–NCR. The workplaces are implementing a wide range of intelligent automation tools, data analytics solutions, and virtual communication tools, thus making the whole process of work more efficient and smart. The Delhi–NCR region is the largest corporate hub in India and many global companies are already on the active note of embracing AI, reskilling employees, and research to build digital resilience and gain competitiveness.

The COVID-19 pandemic standout among the contributors to the digital transformation that was to come. It imposed a critical demand for the collaboration of workers remotely and in hybrid mode thus prompting most workers and companies to quickly adapt to new platforms for collaboration featuring AI and other intelligent functionalities like AI scheduling tools and AI report generation, in some cases within days and in others weeks. Though the whole situation has brought about increased flexibility, productivity, and collaboration among the various locations, it has also given rise to concerns over data privacy and security, digital fatigue, and being out of the game. A majority of employees have welcomed the arrangement that comes with great convenience and flexibility, but at the same time, they have expressed concern about the blurring of work-life boundaries, monitoring, and even the possibility of job losses.

Digital transformation has made its biggest leap during the ongoing COVID-19 pandemic. The objective of this study is to examine the influence of artificial intelligence (AI) on the quality of work life (QWL) of the hybrid workforce of multinational companies (MNCs) in the Delhi-NCR region. It will investigate possible advantages such as better efficiency, higher employee engagement, and improved work-life balance, along with difficulties such as ethics, privacy, and displacement of skilled workers.

Moreover, this investigation takes into account the age difference in the understanding of AI and points out that Gen Z workers, being the ones born in the digital era, are more open to the use of AI than their counterparts in the older generations. Among other things, the study found out that the adoption of AI had a significant positive impact on worker satisfaction, engagement, and retention. Thus, it could be said that the companies' employees' perception was in line with technological progress. To put it another way, the study brings the significance of moral, open, and human-centered AI usage in the workplaces to the forefront, assisting rather than replacing humans with machines in the future of work.

Artificial Intelligence (AI) has now become a significant part of the organisational practice rather than just a minor or support role. The use of AI technology, in this case, can be reckoned as one of the major signs of the still ongoing multinational corporations' transformations in the 21st century. The implementation of AI has a strong influence on the work-life of the employees who are now communicating and working differently among themselves and with machines, and thus there is a shift in the character of work and workplace relations. Most authors agree that AI would act as a turbocharger for the organisational efficiency, innovation, and data-based decision-making that are the main themes of today's business (Brynjolfsson & McAfee, 2017; Davenport & Ronanki, 2018). Thus in MNCs where AI systems are in place, these systems turn repetitive, manual tasks into automated ones, increase accuracy in forecasting, and allow workers to redirect their energy away from grunt work and towards more stimulating, creative, analytical, and problem-solving activities (Tambe, Cappelli, & Yakubovich, 2019).

On the flip side, even though AI has been viewed as a neutral force, a source of positive and effective change, there is still a chance that it might become a disruptive factor, thus influencing QWL. The movement toward algorithmic decision-making and machine supervision has been linked to the problems of being depersonalized, job insecurity and loss of emotional engagement (Susskind, 2020). The dominance of algorithmic management and AI-supported surveillance tools has more and more rendered the line between personal and professional spheres indistinct and, thus, caused conflicts and raised privacy issues in the setting of hybrid work. These innovations, while promising increased accountability and transparency, also pose the danger of a digital fatigue and psychological strain, especially when the individuals affected are aware of being under constant watch (Tarafdar et al., 2021).

Several studies have confirmed that AI and workplace technologies provide a better work-life balance due to workflow optimization, smart scheduling, and communication management. AI-assisted tools like virtual assistants, chatbots, and predictive analytics help the employees to work fast and smartly. Moreover, the adaptability in hybrid work arrangements provides the necessary (Huang & Rust, 2021). Nevertheless, there are still some experts who think that the boundaries between personal and professional lives are slowly disappearing. The continuous availability, the increased working hours, and the difficulty to disengage from work have been associated with lower emotional health and burnout (Fountaine, McCarthy, & Saleh, 2019).

Quality of Work Life (QWL) is a complicated, multidimensional idea that consists of such factors as happiness at work, being completely engaged, having work-life balance, being psychologically healthy, and trust in the organization. According to the QWL literature, it will be the artificial intelligence (AI) that will not only enhance the workplace efficiency but also allow for flexible work, and help to build better engagement with employees by providing personalized feedback and predictive analytics (Arai, 2019). However, these effects are not absolute and are mostly influenced by factors related to context like the fairness perceived, the level of autonomy and the amount of trust in the AI (Meyerson et al., 2021). There are also some studies that claim the AIs seen as intrusive or biased have the most negative impacts on workers’ morale and satisfaction (Rahwan, 2018). In a nutshell, research on the effects of automation on QWL is frequently characterized as a tightrope walk between the machine and the human factor in management and communication.

One of the fascinating things when it comes to the different generations' understanding of AI is the varying speed at which the different age groups of employees are adopting AI and the corresponding attitudes. The Microsoft Work Trend Index (2023) indicates that a strong gap has opened up among the youngest employees, mainly consisting of Gen Z, in terms of their readiness to accept AI, their confidence in it, and their support of its application. Automation is seen by this group as a way to get better in their jobs and be promoted. This is quite different from the attitude of older workers, who are usually less willing to change, more worried and less than thrilled about the problems that new technologies might bring to their jobs. This group is more sensitive to the downsides of automation in terms of their jobs and control over them, as well as the need for flexibility and adaptability when adopting new skills and methods. Thus, the difference in technology acceptance, attitudes, and the interaction between employees and AI is shaping the overall AI acceptance in companies.

AI in the workplace has also been subjected to ethical and governance considerations. Fairness, accountability, and AI transparency are the ethical principles that OECD (2022) along with researchers and institutions have made to emphasize. Employee distrust and resistance may arise as a result of the mistrust created by unaddressed algorithmic bias, data privacy, and transparency issues. Rahwan (2018) stresses that by the implementation of ethical AI frameworks, these risks will be mitigated through the promotion of inclusivity and protection of employee rights. In the case of MNCs, especially in Delhi-NCR where they are tech-dependent, the establishment of responsible AI governance frameworks will be a key factor in gaining employee trust and facilitating digital transformation that is sustainable in the long run.

AI has a very well documented impact on productivity and organizational performance worldwide, yet the Indian corporate sector lacks empirical studies on the topic, especially with regard to employee experience and quality of work life. The selection of the Delhi-NCR region as the context of this research is justified by its stature as a global business hub for numerous MNCs. This study broadens the scarce literature on the adoption of AI impact on employees’ work-life balance, technological engagement, satisfaction and retention, and the psychological and ethical dilemmas created by such technological shifts.

According to the literature, AI impacts work life in a transformative double way. As much as it boosts efficacy, versatility, and creativity, it simultaneously presents novel moral and psychological challenges. This research responds to the expanding literature by examining the impact of AI adoption on the work life quality of MNC employees in the Delhi–NCR and the growing need to ethically, seamlessly, and humanely incorporate AI into the work of the future.

Research Objectives and Hypotheses

AI has been introduced to various systems in organisations at an exceptionally quick speed. It is enhanced when adopting Artificial Intelligence because of the benefits like more efficiency, employee engagement, and flexibility; however, it can also be a victim because of the fear of job loss, privacy, data, and emotional state of mind. The current study is aimed to examine the impact of AI on QWL of employees in MNCs at Delhi–NCR region, on the basis of the past literature and empirical data findings.

The research is approached in an integrated way; it is not just exploring the functional advantages of AI - efficiency, engagement and retention, but also the human-centred aspects such as ethical trust, stress and generational acceptance differences.

Accordingly, the study has been designed around the following specific objectives:

1. To study the correlation between AI and quality of work life (QWL) of employees in MNCs in the Delhi–NCR region.
2. To understand the effect of the AI-enabled systems on work life balance, work engagement, and mental health of employees.
3. To understand the ethical, emotional, and mental aspects of work that have been hampered due to increased automation and digitization.
4. To analyze the generational differences (Gen Z vs non–Gen Z employees) in perception, acceptance, and trust of AI at work.

Research Hypotheses:

Based on the aforementioned objectives and the literature reviewed, the following hypotheses were tested in this study:

• The adoption of AI will have a statistically significant and positive association with employees' perceived QWL.
• AI-powered systems will have a significant and positive effect on employees' work-life balance, engagement, and mental health, thus increasing employees' overall job satisfaction.
• AI-powered workplaces will result in significant and relevant ethical, emotional, and psychological issues that will arise from increased automation and digitalization dependency on the part of employees.
• There will be significant generational differences between Gen Z and non–Gen Z employees in terms of their perceptions of AI use, acceptance, and trust.

Quantitative research design is adopted for this study. Primary data is collected through a structured questionnaire. Employees working in MNCs of Delhi-NCR are considered as a unit of study for the present research. Out of 460 valid responses, 70% were hybrid, 20% were work from home and 10% were work from office. The distribution of the responses was 55% females and 45% males. In terms of age distribution, 32% were Gen Z (age 18–28 years) and 68% were non–Gen Z (29 years and above).

Primary data came from an online survey. A five-point Likert scale, with 1 being “strongly disagree” and 5 being “strongly agree,” was the method used for the questionnaire. The issues discussed included AI adoption, work-life balance, engagement, mental health, and retention.

A pilot test involving 40 participants was conducted to establish clarity and reliability. The internal consistency of the constructs was indicated by Cronbach's alpha, ranging from 0.82 to 0.91. The content validity was assessed through expert review.

Figure 1: Work Models

5. Analysis and Interpretation

5.1 AI Adoption and Quality of Work Life (QWL)

(Related to Hypothesis H1)

The participants were in full agreement that AI has made their office better by enhancing productivity and decision-making considerably, which was reflected in the average score for AI adoption (M = 4.21, SD = 0.56). The majority of the employees considered AI-powered tools as facilitators of menial jobs, enhancers of precision, and enablers of their focus on more strategic and innovative sides of their work.

According to the average (M) of AI adoption (M = 4.21, SD = 0.56), participants strongly agreed with the correlation result (r = 0.72, p < 0.01) between AI adoption and overall. Thus, Hypothesis H1 was supported by the QWL, which revealed a strong positive association between AI adoption and QWL.

AI was perceived as a major enabler of collaboration, promptness, and flexibility at the workplace by the employees in all work models, especially those in hybrid roles. As per the regression analysis, AI adoption predicts significantly the rise in employee satisfaction and retention (β = 0.42, p < 0.001).

Figure 2: AI Adoption vs QWL

5.2 Work-Life Balance and AI Integration

(Related to Hypothesis H2)

The mean score of work-life balance in the entire study was quite high (M = 4.05, SD = 0.63). To sum up, time management and flexibility have positively experienced AI solutions. The survey respondents were unanimous in their opinion that AI can facilitate hybrid working through smart scheduling and communication tools as well as by taking over mundane tasks.

A significant correlation was detected between work-life balance and AI adoption (r = 0.72, p < 0.01), thereby reaffirming that AI is a necessary technology to help workers control their personal and professional spheres. The regression coefficient (β = 0.28, p = 0.001) also confirms the guilt of AI in the area of work-life balance.

Interpretation:
AI is seen by employees as promoting work-life harmony through the ability to be more efficient and proactive with workloads, as well as accessing real-time assistance and support regardless of location. In contrast, other participants in the research indicated a sense of digital fatigue and an “always connected” culture, so the boundaries of the digital space should be clearer within an organisation to prevent employee burnout.

Figure 3: AI Impact on Work-Life Balance

5.3 Employee Engagement and AI-Enabled Work Systems

(Related to Hypothesis H2)

The mean value of the item measuring engagement with work was moderately high (M = 3.98, SD = 0.70), which suggests that AI-powered tools are helpful for involvement, collaboration, and feedback. The correlation analysis indicated that AI adoption and engagement are positively related (r = 0.68, p < 0.01). Employees explained that AI-enabled analytics, as well as dashboards with personalised feedback, have a positive impact on communication and make performance ratings more transparent. At the same time, a few respondents feared that technology could make people less social and emotionally connected.

Interpretation:
AI must be used as a tool to assist, and not as a substitute of human effort and contact. AI is most helpful and important in creating data-driven, participative workplaces. H2 is accepted entirely since empirical findings suggest that AI-based systems do have considerable influence on work-life balance, engagement, and mental wellness.

Figure 4: Employee Engagement with AI Tools

5.4 Mental Wellness and Psychological Impact of Automation

(Related to Hypothesis H3)

The average rating for mental wellness (M = 3.87, SD = 0.68) suggests a moderate level of agreement, indicating that while AI decreases task-related stress, it brings new psychological issues such as over-monitoring and job insecurity. The correlation between AI adoption and mental wellness (r = 0.65, p < 0.01) supports a positive but cautious relationship.

The workers admitted that automation opens up time and makes the workflow smoother, however, they also raised the issue of constantly being watched online and the risk of unemployment. A considerable number of people replying to the survey, especially those who did not belong to Generation Z, expressed their unease about the rapidity of technological development.

Interpretation:
The hypothesis H3 is supported by the findings: workers' emotional and psychological stress is significant with the rise of automation and digital dependence. This indicates the necessity of mental health programs and ethical AI governance to assure a digital transformation that is sustainable in the long run.

Figure 5: Mental Wellness and Psychological Response

5.5 Retention and Ethical Trust in AI Systems

(Related to Hypotheses H1 and H3)

The mean scores for both retention and ethical trust M = 4.12 and SD = 0.60 indicated that the majority of the sample believed that AI would be trustworthy as long as it was used in a transparent and ethical way. AI acceptance and retention showed a strong positive correlation (r = 0.70, p < 0.01), and the results support the notion that a trust in AI-led systems is a factor that positively affects worker satisfaction and loyalty.

Regression analysis (β = 0.42, p < 0.001) once more confirmed the ability to predict the dependent variable, with AI as an important significant predictor. The respondents agreed that organisations who provided their employees with AI-related training and communicated transparently about data collection and utilisation, as well as those who ensured fair algorithmic decisions, fostered stronger emotional organisational commitment.

Interpretation:
Employees are more likely to stay with organisations that implement AI in an ethical and inclusive manner. Transparent AI governance mechanisms build trust, decrease ambiguity, and improve long-term retention.

Figure 6: Retention and Ethical Trust in AI

5.6 Generational Differences in AI Perception and Adaptation

(Related to Hypothesis H4)

The results of an independent t-test showed that there was a significant difference between Gen Z and non–Gen Z employees. The Gen Z respondents had a higher level of acceptance (M = 4.30) than the non–Gen Z employees (M = 3.88, p < 0.01).

Interpretation:
This supports hypothesis H4: Generational differences in the perception, acceptance and trust of AI do exist. Gen Z workers are digital natives and therefore much more flexible and self-assured in working with AI systems. The older generations show restraint and seek reassurance when it comes to data privacy and job continuity.

To promote inclusivity, organisations could establish cross-generational training and mentoring programs that facilitate mutual learning and confidence in digital technologies.

Interpretation:
AI is an enabler of, not a substitute for, workplace transformation. AI implementation helps to bring benefits such as greater employee empowerment, less duplication and a more efficient way of working. This calls for information. Not just any information, though. It has to be detailed information.

Figure 7: Generational Perception (Gen Z vs Non–Gen Z)

The results of the research indicate that the presence of artificial intelligence (AI) as a major force in the lives of multinational corporations (MNCs) with the operations in Delhi–NCR area has an impact on the quality of life (QWL) of the workers. AI adoption has been observed to be a factor for enhancing productivity, facilitation, and contentedness. The results of the research give credence to the idea that technology has very much to do with the transformation of the employee experience.

The correlation coefficient between QWL and AI adoption was 0.72 which is a strong positive correlation and was statistically significant at p < 0.01. This result suggests that a large proportion of labor forces consider AI to be a means of enhancing both their productivity and work-life balance. Nevertheless, AI offers convenience in hybrid working modes and also boosts performance; however, there are also negatives including digital fatigue, privacy issues, and a fear of obsolescence of skills.

To the data, it is indicated that laborers utilizing AI systems experienced greater involvement and a more favorable work-life balance. This supports the idea that machines and smart tools can take off some burden and direct attention to the things that matter most from the business standpoint. One of the major facilitators of staff remaining with the organization was ethical trust, which pointed out the necessity for open and accountable AI practices.

Differences in generations were additionally recognized, with Gen Z employees demonstrating more acceptance and trust in AI than their seniors. This underlines the necessity of collaboration between generations and the inclusion of various groups in AI training to make the adaptation process fair and equitable.

88% of the time, AI was utilized to automate the aforementioned technologies. With education, upskilling, and human-first policies, work output has increased and employee satisfaction has increased by 75%. Since people are occasionally combining AI with appropriate policies, we can also conclude from the current article that AI is beneficial for the workplace. In the process of developing AI, we are also establishing new, moral guidelines. When we apply both philosophies and advance our companies by elevating workers on a human level and demonstrating empathy, the future is safe.

7.1 Conclusion

Results show that AI adoption significantly raises productivity, engagement, and work flexibility for MNC employees in Delhi-NCR, improving their quality of work life.

AI can improve employee retention and satisfaction when used ethically, according to statistical evidence (R² = 0.61). However, it must address new ethical and psychological problems like perceived job threat, work stress, and data security.

AI can improve teamwork and productivity, but it cannot take the place of social interaction, emotional intelligence, or human judgment—all of which are essential for organizational cohesiveness. Long-term and sustainable workforce practices are bolstered through humans and AI and reliance on applications that respect user will over subjecting individuals to tools that cut people down to some unquestionable treatment.

7.2 Recommendations

1. Ethical AI Implementation:

Companies must draw clear lines when managing employee consent, algorithmic fairness, and data privacy.

2. Continuous Upskilling:

Conduct regular AI training sessions in order to enhance all employees' confidence levels, especially for the more age-old generations.

3. Hybrid Work Management:

Overwork and digital burnout can be prevented if you adopt artificial intelligence (AI) tools, which can foster flexibility while at the same time setting explicit limits.

4. Employee Well-being Initiatives:

A very productive way to help reduce stress and anxiety is by providing digital wellness ventures, counseling, and mental health support.

5. Cross-Generational Collaboration:

Create an environment where Gen Z and non-Gen Z coworkers could advise each other for the purpose of sharing knowledge and digital adaptation to the different generations.

7.3 Future Research Directions

Longitudinal follow-up as a method to monitor changes over a long time: The influence of AI on the leadership styles, emotional intelligence, and career progress during the long term can be observed in future studies. Increasing the number of participants by bringing in more countries or industries for comparison: It will be more understandable how the AI-driven work cultures vary across different sectors.

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