Artificial Intelligence (AI) technologies and tools have grown significantly in their maturity and ability to address real-world use case scenarios satisfactorily. AI tools are being widely adopted by businesses to deliver value to customers through innovative products and services and improve business excellence through improved effectiveness and efficiencies. In the context of AI usage for various business operations, it has been found that AI usage not only influences work efficiency but also impacts employees’ emotions and, thereby, their behaviour. Hence, there is a need to understand these two together to leverage AI to improve work efficiency and positively impact employees’ emotions and, in turn, their behaviour. This chapter attempts to address this need, leaning on the published literature on current and future applications of AI, the impact of AI on work efficiency and employee behaviour, the challenges faced, and recommended best practices focusing on the Human Resource Management (HRM) function of organisations. The chapter starts with tracing the evolution of information systems leading to AI, articulates how it influences work efficiency and employees’ behaviour with the HRM function as a case in point along with broader AI application scenarios in various management functions and concludes with a summary and future directions.