The Emotional Impacts of AI in the Workplace

If you or your employees are feeling AI anxiety, you’re not alone. According to data from Ernst and Young, 75% of employees are concerned that AI will make certain jobs obsolete.

It’s inevitable that AI will restructure the global workforce, but only time will tell to what extent it could disrupt employment. Yet whether or not AI anxiety is unwarranted, the phenomenon is rampant — and it’s having a significant impact on workplace morale and emotional well-being.

A recent survey from The American Psychological Association revealed a strong connection between AI anxiety and poor mental health. Specifically, two-thirds of people who said they felt worried about AI also reported feelings of workplace stress or burnout on a regular basis.

Burnt-out employees are the last thing that any organization wants — they’re less productive, more prone to error, and more likely to quit. In this climate of tech-driven nail-biting, now’s the time for companies to take an empathetic approach to AI adoption.

The Evolution of Automation Anxiety

Fears about technology replacing jobs are nothing new. From assembly line robots to computers, new technologies have significantly restructured workforces over the years.

What’s different about today’s brand of automation anxiety, however, is that it’s affecting the white-collar workforce. It’s no longer factory workers and farmers who are concerned about technology taking their professions. It’s the financial analysts, writers, designers, and other largely office-based workers among us.

The reason behind this shift is the advent of machine learning and generative AI technologies that employ logic, reasoning, and creativity — qualities that were once assumed to be irreplicable. Generative AI tools like ChatGPT can analyze existing data and generate original content or data sets. Whether it’s tackling complex operational challenges, performing risk monitoring, or creating visual art, the applications of generative AI are tremendous.

Why is Artificial Intelligence Causing Workplace Stress?

Job displacement is an obvious source of AI anxiety among workers, but it’s not the only AI-fueled concern. Employees are struggling with a variety of fears about the AI impact on jobs — both on a practical and emotional level. Beyond worries about their career paths and livelihoods, employees are grappling with feelings of inadequacy and fearing purposelessness. They worry that their unique skills and contributions could be devalued in a world where AI can replicate human abilities. This emotional strain can lead to decreased morale, productivity, and overall well-being among employees.

Let’s take a closer look at these anxieties:

The Practical Impact of AI in the Workplace

• Job security

  As AI adoption accelerates in a wide range of work sectors — from manufacturing, to customer service, to marketing — employees are worried that their skill sets could be outsourced to technology.

• Stagnating wages

  AI-induced wage stagnation is a legitimate concern in certain industries. According to the International Monetary Fund, the use of AI tools may lower the demand for labor and bring down salaries as a result.

• Stalled career growth

  Workers fear that if AI technology creeps into their area of expertise, there will be fewer higher-level positions. Similarly, employees are concerned that if they don’t quickly learn how to leverage AI on the job, they may fall behind.

The Emotional Impact of AI in the Workplace

• Feelings of inadequacy

  Perhaps most significantly, concerns about AI are fueling feelings of inadequacy and a loss of perceived value. When faced with technology that can mimic our talents, it’s easy to understand why self-worth could take a big hit.

• Less meaning and purpose

  Work is more than just a paycheck — it’s also often a source of enjoyment and even a higher calling. Many workers are concerned that they will be relegated to performing mind-numbing, monotonous tasks as the creative aspects of their jobs are handed off to artificial intelligence. While this hasn’t proven to be the case, it nevertheless weighs heavily on a lot of employees, particularly those in creative fields.

• Weaker team bonds

  Because AI can automate tasks and even decrease headcount, some sectors and departments could experience fewer opportunities for collaborative work and interpersonal interaction. This, in turn, could have a harmful effect on employee satisfaction and team camaraderie — not to mention creative brainstorming potential.

How AI Anxiety Manifests Itself

We know that concerns about artificial intelligence are having a significant impact on employee morale. But, what does this look like in the workforce? As with any form of workplace stress, AI anxiety can contribute to:

• Increased turnover
• Poor physical and mental health
• Worse performance
• Increased errors
• Higher absenteeism
• Workplace disputes

The repercussions of AI anxiety are tremendous. When workers feel stressed, everyone suffers — employees feel the toll on their health while employers take a hit to business outcomes.

With stress and burnout already at all-time highs, adding AI anxiety into the mix can feel truly crushing for many professionals. In addition to adopting the AI-specific tactics we will soon discuss, companies are sure to benefit from implementing general strategies that enhance employee well-being. This may include offering health and wellness perks, fostering a safe and empathetic environment, and hosting fun team-building activities.

How Employers Should Respond to AI Anxiety

When we consider the potential ramifications of AI, it’s easy to understand why addressing AI anxiety is a must for company leadership. When employees feel that their jobs are at risk and that they can easily be replaced, they stop engaging and perform poorly — and they may even quit.

Whether or not your company is implementing AI technologies, your workers must be made aware of your approach to automation. And if you are using artificial intelligence, all the more so is it necessary to implement strategies that ease employee anxiety.

Here are some practical steps for HR and executive teams to consider taking:

1. Be transparent

   A survey of company executives and employees found that even though 78% of companies use AI, over half of employees report having no idea how their company is actually using the technology. This lack of transparency is highly detrimental to workforces. When kept in the dark, employees are more likely to feel anxiety-ridden and jump to conclusions about their job security. With such heightened levels of stress, workers become more prone to burnout and poor performance.

2. Give employees a seat at the table

   As your company explores potential AI use cases and software solutions, involving employees is a great way to encourage more buy-in. In EY’s survey of workers cited above, 77% said that they would be more comfortable using AI if employees at every level were involved in the decision-making process.

3. Reframe the narrative

   It’s natural for employees to worry that AI will replace their jobs, but the reality is more nuanced. While some entry-level jobs may be at risk, many jobs cannot be outsourced entirely to AI. Flip the script and emphasize that AI is a tool that complements employees rather than replaces them.

4. Educate employees about the role of AI

   On a similar note, employees should be given a macro-level understanding of what AI can and can’t do. Misconceptions about artificial intelligence abound, and they’re only fueling unfounded concerns that AI will make our jobs obsolete. For example, while AI algorithms excel at data analysis and task automation, they lack emotional reasoning, human empathy, and creative depth. AI is also prone to errors, biases, and limitations, and it very often requires human oversight.

5. Provide AI trainings

   Research from Amazon Web Services found that nearly 80% of workers would be interested in developing AI skills to advance their careers. Catering to this demand for AI skill development will boost employee satisfaction while also alleviating concerns about skill gaps that could affect pay or career growth. At the same time, hands-on access to AI will help workers understand AI’s strengths and weaknesses.

6. Prioritize employee recognition

   For many years now, employee recognition has been a popular and effective strategy for enhancing job satisfaction and performance. Yet now that workplaces are using AI, prioritizing worker recognition has only become more important. Employees are less likely to feel that they’re competing with robots when praise and feedback are provided on a regular basis. Creating a culture of recognition staves off feelings of inadequacy and helps workers feel a sense of purpose and pride.

Combat AI Anxiety With WorkProud

The emotional impacts of AI run deep, hitting at the core of who we are as humans. Our basic need to feel valued is seemingly at odds with the prospect of technology that could make our skills and jobs obsolete.

Educating employees on the role of AI and assuring them that AI won’t take their jobs is a must in the current climate. Yet providing this assurance isn’t a one-time thing — employees need ongoing recognition to feel confident that their contributions matter.

With the help of the WorkProud recognition and rewards platform, you can scale up employee praise and appreciation — both quantitatively and qualitatively. Our solution makes it fun and easy for employees to recognize efforts, successes, and milestones. To sign up for a free demo, click here!