Gamified Work Systems as Behavioural Framework: A Behavioural Economic Study of AI-Mediated Employee Engagement in the IT Workforce

This study investigates how AI-driven gamification (points, rewards, leaderboards, challenges, and feedback) reshapes employee engagement in Chennai's IT sector, drawing on behavioral economics principles such as framing effects, social comparison, and loss aversion. Using survey data from 540 IT professionals and Structural Equation Modelling, the research tests how gamified elements influence engagement through mediators like AI-driven motivation, decision framing, and cognitive immersion. Findings show that while AI-powered gamification boosts intrinsic motivation and creates more immersive work experiences, it can simultaneously erode employee autonomy and heighten algorithmic control—revealing a dual-edged impact. The study contributes an integrated framework combining behavioral economics, game theory, and AI, offering organizations practical guidance for designing ethical, transparent, and engagement-driven digital workplaces.