The swift adoption of Artificial Intelligence in modern work environments has brought about substantial shifts in organisational functioning, employee roles, and their mental well-being. The present study aims to examine the relationship between workplace AI integration, organisational readiness, perceived AI-related stress and employee well-being among IT professionals working in Info Park, Kochi, Kerala. Primary data were collected from 111 respondents using structured questionnaires operationalising four principal constructs – Attitude Towards AI, Perceived AI-Related stress, Workplace AI Readiness, and employee well-being – measured on a five-point Likert scale using a quantitative, cross-sectional, explanatory design. Data analysis was carried out using IBM SPSS Statistics, including descriptive statistics, reliability, correlation, multiple regression and mediation and moderation analyses. The results show that respondents have a general positive attitude towards AI, with high perceived usefulness and optimism about career development. Moderate levels of latent uncertainty were also found, especially in terms of job security and speed of technological change, consistent with the conceptualisation of technostress by Tarafdar et al. (2007). Organisational AI readiness was rated as moderate with distinct deficits in participatory governance, supervisory support and institutional mental health infrastructure. Notwithstanding these gaps, employees reported generally positive well-being outcomes, underpinned by personal resilience and mastery-oriented engagement with AI. All measurement scales showed excellent internal consistency (α > 0.94). The study contributes empirical evidence to the emerging discourse on AI-induced occupational stress and wellbeing, with implications for organisational policy, HR practice, and the design of psychologically informed AI adoption strategies in India’s IT sector