‘The AI Penalty’: Why Your Employees May Be Hiding Their Tech Usage

Convincing today’s workers to embrace artificial intelligence (AI) tools is a well-documented challenge, but what if workers are already using them and are afraid to disclose that information?

Known as “the AI penalty,” employees who are using the technology are finding that their personal work contributions are being devalued or discredited as their AI usage becomes more visible. This can appear as:

• Shifts in perception of their competence (especially those in under-represented populations).
• Less trust in their work.
• Being passed over for promotions or opportunities.
• Reduced compensation.

“There’s a misconception that AI helps someone get to where they are and that it makes them less than instead of more than,” said Amy Mosher, the chief people officer at isolved, a human capital management and benefits services company.

Access bonus Workspan Daily Plus+ articles on this subject:

• A Checklist to Help HR Promote (Not Stifle) Proper AI Utilization
• How Managers Can Recognize and Reward AI Skills

Consequences of the 'AI Penalty'

According to the experts interviewed in this article, this misconception can occur because:

• Workers aren’t given clarity on how they should use AI.
• Managers aren’t equipped to contextualize AI disclosures.
• Leaders — especially if they don’t regularly use AI themselves — outwardly or unconsciously respond to AI disclosures by assuming the tech is doing the heavy lifting.

Those employees may then be passed over for pilot projects or stretch assignments by managers who consider them less competent, said Karen Catlin, an inclusive workplace expert, former tech executive and the author of the “Better Allies” book series.

Employees who experience, observe or simply fear this penalty may start to keep their AI use a secret — or, in some cases, stop using AI at all.

“However you’re measuring productivity in your organization at performance reviews, the people who have stepped back from AI may be seen as less productive or even get labeled as Luddites,” Catlin said. “And, we don’t want people to get left behind.”

Changing the AI Narrative

To ensure that the technology organizations are asking employees to adopt doesn’t become a self-defeating workplace drain, the experts in this article shared the following steps:

• If you want employees to use AI, ensure they know exactly how you want them to use it.
• Clarify precisely how employees should disclose or discuss their AI use.
• Facilitate an environment that isn’t about giving or sharing “credit” with AI but rather keeps employees at the center of their contributions.
• Educate your leaders on the “AI penalty” and the internal biases they may feel.
• Equip managers with guidance and policies to improve the performance review process.

Mosher said misdirected — or secretive — usage will lessen when workplaces understand that using AI won’t replace or reduce employee expertise, institutional knowledge, or human skills and judgment.

“It’s a total misconception that you don’t need to know anything anymore because AI will do your job for you,” she explained. “You’ll end up with better, stronger, faster employees when they know how to use this technology to better themselves, their work product and the organization.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Career Growth
• Employee Experience