This study explores the role of Artificial Intelligence (AI) across various business sectors and underscores the importance of the human element in harnessing AI’s potential. It addresses the concept of “technostress” and aims to understand the implications of rapid AI proliferation on the workforce. The research seeks to understand the dimensions of technostress exacerbated by AI adoption and elucidate the factors that followers deem crucial in navigating and adapting to the transformative trajectory of AI technologies. A significant proportion of observed efficiency improvements can be attributed to the integration of systems involving collaborative efforts between human workers and AI. However, the realization of these efficiency gains is contingent upon the workforce’s acceptance of these systems. Resistance to technological adoption due to technostress could potentially hinder the full exploitation of the envisioned efficiency enhancements associated with Human-AI Collaboration systems. Most literature has focused on the perception of AI adoption, and studies investigating the effect of human-AI collaboration through actual co-working with AI are scarce. This study aims to fill this gap in the literature, offering valuable insights into the interplay between human cognition, technology-induced stress, and its broader impact on individual well-being and organizational dynamics.