The increasing integration of artificial intelligence (AI) in workplaces is transforming job roles, yet employees’ reactions to these changes vary. This study investigates how AI-driven work transformation—through automation and augmentation—affects employees’ willingness to use AI via perceived job identity threat. Drawing on the identity threat framework and mindset theory, we propose that employees with a fixed mindset are more likely to experience heightened job identity threats, amplifying the negative effects of automation and diminishing the benefits of augmentation. In contrast, employees with a growth mindset are more adaptable, perceiving AI-driven changes as opportunities, thereby mitigating identity concerns. We use an experimental design to examine AI-work interaction effects, offering theoretical and practical insights into managing job identity threats and promoting AI adaptability among employees.