In the modern world, Artificial Intelligence (AI) is factually managing the organization processes, the staffing and the performance on the business floor globally. The purpose of this research is to study the response of organizations to AI, their adoption and the impact of AI on the organizational performance of the organizations engaged in IT and service sectors in Maharashtra. The technique involves using quantitative research and the data were primary data which was collected from a structured questionnaire filled by 450 employees and people from manager level. Descriptive statistics were used to summarize the data and a data analysis was conducted using SEM. The findings indicate that artificial intelligence has a considerable effect on the adaption workforce because of its high potential to upskill the employees, create a culture of lifelong learning and help the employees adapt to the workload and new job demands. According to the study, ability of the workforce to adapt has a positive impact on the organizational performance in terms of productivity, innovation, operational efficiency and effective decision-making. In addition, workforce adaption mediates AI adoption and organizational performance only partially. The Working Paper highlights the impact of artificial intelligence on the job market. Therefore, the study substantiates the requirement of blending technology advancement and track progression in employee adaptation programs for success and sustainability...