The rapid advancement of artificial intelligence (AI) and flexible AI systems, like generative AI, has sparked concern over its potential psychological impact, leading to an urgent need for a multidisci-plinary approach to understand and mitigate AI-induced anxiety. This article conducts a thorough investigation of the unique stressors of AI anxiety present in different age demographics including young adults, middle-aged, and seniors. It also sheds light on common fundamental causes of AI anxiety such as concerns about privacy, fake AI generated content, uncontrolled AI growth, and bias in AI. While this article confines AI anxiety to non-clinical parameters, it explores its far-reaching impacts on mental and physical health, along with repercussions on healthcare expenses, economic efficiency, and fertility. To tackle AI anxiety, multidisciplinary solutions are proposed. First, the paper highlights the urgent need for AI-adapted clinical guidelines, incorporating tailored diagnostic and therapeutic measures aimed at mitigating AI anxiety. It also emphasizes the role of continuous education in demystifying AI, advocating for prompt updates to school curricula to match the rapid progress in AI technology. Emphasis is given to promoting regulatory measures to balance AI innovation and societal adaptability, including engineering constraints and ethical design as essential components of responsible AI development. Lastly, it explores pioneering solutions to mitigate AI anxiety, such as leveraging AI in mental health interventions. Heightened focus and allocation of resources are critical steps to confront the escalating mental health challenges as society navigates the impending era of pervasive AI.