Algorithmic Anxiety in Middle Management: Cognitive Load Dynamics during AI-HRM Integration in Southeast Asian MSMEs

The integration of AI-driven Human Resource Management (AI-HRM) systems in Southeast Asian Micro, Small, and Medium Enterprises (MSMEs) has triggered algorithmic anxiety among middle managers, characterized by heightened cognitive load and role ambiguity. This mixed-methods study examines cognitive load dynamics across 127 MSMEs in Thailand, Vietnam, and Indonesia, revealing that 68% of managers experience moderate-to-severe anxiety during AI adoption (Nguyen et al., 2024). Key drivers include algorithmic opacity, skill adaptation pressures, and erosion of decision-making autonomy. Findings demonstrate that participatory job redesign and algorithmic transparency protocols reduce cognitive strain by 42% while enhancing strategic contribution capacity (Penfold, 2024). The research proposes a cognitive load mitigation framework tailored to Southeast Asia’s institutional context to support sustainable AI-HRM integration.