As the workplace undergoes rapid transformation due to AI and automation, conversations frequently emphasize their economic effects, often neglecting the important psychological consequences these technologies bring. This study seeks to rectify that gap by examining the intricate dynamics of human-technology interactions in professional settings, with a focus on the psychological ramifications of AI and automation. By revisiting research from the 1950s and incorporating modern studies, this chapter delivers a thorough evaluation of how these innovations affect mental health, job satisfaction, and overall well-being. The results underscore both the potential dangers and benefits associated with AI and automation, highlighting the necessity for a comprehensive understanding of their influence on employees. This research provides crucial insights that can inform future strategies and policies in the workplace, aiming to ensure that the integration of technology promotes rather than detracts from human well-being.