The field of Artificial Intelligence (AI) has grown rapidly in recent years, with applications in various industries. AI is a simulation of human intelligence in machines that are programmed to think and perform tasks with the support of human intelligence (HI). These tasks may include learning, reasoning, problem-solving, perception, understanding natural language, and adapting to new situations. It is also highlighted that generation Y (Gen Y) creates new definitions to work places, success, leadership, and professional relationships. Gen Y has been labelled as the ‘Greatest Generation’ and are said to have all the gears to face the complexities of the current and future (Hershatter & Epstein, Journal of Business and Psychology 25:211–223, 2010). There is an understanding, being highly technology savvy with strong collaborative skills makes Gen Y employable in any industry (Reed et al. Psychology and Aging 29:1, 2014). This generation came of age during a time of significant technological advancements, including the rise of the Internet and social media. However, there is a lack of comprehensive understanding on the impacts of the utilisation of AI in human resources (HR) at an organisational level. Therefore, the purpose of this research is to understand the millennials’ perception on AI usage and their potential response at the workplace. Hence, this research will question how millennial employees understand AI applications at their organisations, how they use AI, and what are the impacts of AI on millennial employees’ careers. The entry of Gen Y into the Sri Lankan labour market has added to the growing complexity as elsewhere in the globe. Sri Lanka is a useful research site to understand generation Y employee’s perception on AI and understand the impacts of the utilisation of AI in human resources (HR) at the workplace. This study adopts an open-ended, semi-structured interview method. A semi-structured interview enables the researchers to understand participants’ experiences and develop a thick, rich description of that experience. Information collected from a sample of millennial employees (male and female) born between the years 1982 and 2000. This research used thematic analysis as an analytical strategy (Braun & Clarke, Qualitative Research in Psychology 3:77–101, 2006). Based on the information collected from interviews with 15 Gen Y employees and at the end of the coding process, this study identified different perceptions of Gen Ys’ on AI adaptation. Further this study identified how AI influences Gen Y employees’ wellbeing/career, and how AI changes their work norms and values that they attach with work and employment. Finally this study concluded with practical implications.