This systematic literature review explores the dual psychological impacts of artificial intelligence (AI) induced technostress, emphasizing both its detrimental and beneficial consequences. Using the PRISMA protocol, 32 peer-reviewed articles published between 2019 and 2025 were selected from an initial pool of articles accessed through Scopus, Springer, Sage, ScienceDirect, and ProQues databases. The synthesis reveal that AI may induce techno-distress, manifest anxiety, cognitive overload, and job insecurity a techno-eustress, which enhances engagement, creativity, and professional growth. These outcomes are mediated by mechanisms (e.g., self-efficacy, resilience) and organizational conditions (e.g., digital leadership, social support). The study underscores the importance of integrating human-centered strategies into AI implementation and calls for the development of multidimensional models that reflect both the risks and opportunities posed by AI in the workplace.