The acceleration of artificial intelligence (AI) adoption in Indonesian government has created a new psychological phenomenon among local government HR practitioners in the form of AI anxiety, namely anxiety about the potential for automation that threatens their professional roles. This study aims to explore the phenomenological experience of AI anxiety, identify its forming factors, and discover patterns of coping strategies developed by HR practitioners in local government. Using a qualitative approach with Interpretative Phenomenological Analysis (IPA), the study involved 12 informants from the Regional Civil Service Agency (BKPSDM) in three districts/cities in West Sulawesi. Data were collected through in-depth semi-structured interviews, observation, and documentation. The findings reveal three superordinate themes: (1) "Threatened yet Bound" describing the dilemma between anxiety of losing professional relevance and attachment to bureaucratic comfort zones; (2) "Between Adaptation and Alienation" showing a spectrum of responses from proactive upskilling to passive resistance; and (3) "Seeking New Meaning" representing the process of reconstructing professional identity amid change. This study found that AI anxiety in local government has a unique characteristic of "security paradox," where guaranteed employment status actually inhibits the urgency of adaptation. These findings contribute to the development of Technology Threat Avoidance Theory by incorporating bureaucratic culture dimensions and offer policy recommendations for digital transformation that consider employees' psychological aspects.