AI in the workplace: risks, rewards and responsibilities

..over half have identified new technologies and AI  as one of their greatest workplace challenges. AI is rapidly changing the way we work and the way our workplaces operate. It has the capacity to improve or undermine employee wellbeing at work, depending on how employers choose to deploy it.

The impact of AI extends beyond productivity into job design, trust, and employee wellbeing. AI can impact the health and wellbeing of the workforce in many ways, so it is essential that it is employed ethically and responsibly so benefits can be reaped not only by individuals, but by businesses too.

Healthy business, healthy employees

Risks of AI on health and wellbeing

The digital divide is growing as workplaces become more AI-enabled, with certain groups having less access to AI and the benefits and opportunities it presents, and being more likely to be negatively impacted by its advancement in organisations. Promoting access and training is critical to bridge this gap and ensure no one gets left behind at work. 

Technology-induced stress is one of the main risks to employee health and wellbeing associated with unethical AI use. With the increasing pace and scale of AI adoption, it is becoming easier for employers to track employee activity through data collection.

AI-enabled workforce monitoring can come in many forms, such as the tracking of app usage, clicks, and keystrokes. While often introduced to improve productivity or consistency, this can feel intrusive if not handled carefully, increasing pressure and reducing employees’ sense of autonomy and control.

Overuse of AI for employee monitoring, particularly if introduced without clear explanation, can damage employee trust and negatively impact wellbeing. It can also change behaviour in less visible ways, making people more cautious, less open, and more focused on avoiding mistakes, reducing creativity and innovation.

AI can also widen existing workplace inequalities in ways that directly affect wellbeing. For example, AI productivity tracking algorithms are often modelled on a ‘normal’ nine-to-five working day, employees who work flexibly may be unfairly penalised. This can increase anxiety and stress, deepen existing inequalities, and reduce engagement.

AI, jobs, and wellbeing

AI is beginning to reshape hiring patterns and job design in ways that create both opportunities and risks for wellbeing. In some cases, automation and the augmentation of human tasks through AI is contributing to fewer opportunities in some entry-level and professional roles, while in others, it can support new roles, better job matching, and more effective ways of working.

Where recruitment becomes more cautious and competition for roles increases, this can negatively affect health and wellbeing, particularly for jobseekers and those wanting to change roles, by increasing uncertainty and prolonging job searches. The impact is unlikely to be evenly distributed, with younger people and those early in their careers among the most affected.

Some employers are taking a more responsible approach to this transition by reskilling, redesigning jobs, and redeploying employees, rather than treating AI automation simply as a route to reducing headcount.

When organisations help people build new skills, move into emerging roles, and understand how new technology will affect their work, it can support wellbeing by reducing anxiety, strengthening confidence and employability, and helping employees see a future for themselves in an AI-enabled workplace.

Helping employees thrive in an AI-centric workplace

AI should be developed and deployed in ways that are ethical, transparent, and people-centred. To help employees thrive and make the most of AI in a way that has a positive impact on their wellbeing, employers should consider the following actions:

• Actively protect and advocate for employee health and wellbeing

It is critical to proactively assess and audit the risks of AI for employee stress, burnout and other mental health impacts, and keep this under review as AI is embedded into different business functions and systems. Employers must assess how these risks may be experienced differently across the workforce, so everyone’s wellbeing is protected.

• Upskill employees and build trust

When shaping the AI agenda for their workplaces, employers need to build trust and engagement by consulting employees. They need to be transparent about how AI is being used, how it may affect workload, and whether it is being used to monitor activity. Clear boundaries around AI use are needed so organisational expectations around AI are understood and worker autonomy is protected. It is also vital that employers train employees on responsible AI use, so the workforce is upskilled and supported.

• Become a responsible AI leader
  

As AI becomes increasingly integrated into workplaces, organisations need strategies and policies that support responsible use. Employers can create ethical AI governance functions, with clear accountability for employee wellbeing. Leading employers should act as role models, helping to shape wider expectations so AI supports a healthier and more sustainable workforce.

For more information see: bitc.org.uk

Amy Butterworth is Inclusion and wellbeing issue director
Business in the Community (BITC)