Why Workers Fear AI: It Starts with Leadership

As organizations step further into the digital realm, many employees are feeling left out of the artificial intelligence (AI) conversation, leading to distrust and reluctance to embrace these changes. That is according to “HR Technology’s Impact on the Workforce,” a Mercer report that explored how a lack of communication is impacting workers’ openness to tech implementation. For example, the consulting firm found:

• Less than 20% of surveyed workers have been informed by their direct manager or supervisor how AI will impact their job.
• Less than 1 in 3 workers are confident their organization will guide them on the skills they will need in the future of work.

This article discusses how HR and total rewards (TR) leaders can help close communication and transparency gaps and improve employee trust in AI adoption.

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• How to Build Employee Trust in the Age of AI

The Roots of Distrust

According to Joshua Lemon, the senior director of global total rewards at smart home and software manufacturer Resideo, workers’ AI fears are often tied to concerns about job security. “People may fear AI because AI makes it possible to close a skills gap where individuals have spent years refining and developing those skills,” he explained.

Those concerns often deepen when communication from leadership is vague or nonexistent, said Phil Willburn, the vice president of people analytics at Workday, a human capital management software company.

“AI distrust is really leadership distrust,” he said, citing Workday research that reported 75% of employees are comfortable with AI but only 30% are comfortable being managed by it. “People need to trust that leaders will use AI responsibly, keep humans in the loop and invest in their growth. When leaders show that, skepticism fades.”

Model Trust Through Honest Communication, Opportunities

Since AI adoption relies on trust, organizational and departmental leaders should be prepared to address questions and concerns from employees, especially since research by Workday and others shows transparent communication is the foundation for a strong team culture and employee trust.

“Give managers a clear view of the AI strategy, train them on how to talk about change and [provide them] the safety to admit what they don’t know,” Willburn said, noting it is equally important for managers to embrace AI. “Great managers don’t pretend to be AI experts — they model curiosity.”

A World Economic Forum report found that when employees see their managers showing agency and optimism toward AI, they were three times as likely to do the same. Additionally, Workday’s internal research found employees were two times more likely to adopt AI in their work if they saw their manager using it.

The Mercer study also showed workers are more likely to spend time upskilling when they feel valued, supported and paid fairly. Those who agree they are paid fairly are 1.8 times more likely to spend more than 15% of their monthly time learning new skills, while those who feel they are underpaid are two times as likely to spend less than 5% of their time upskilling.

Building a Culture of Trust

To make progress in this area, Lemon recommended that organizations show employees there’s a place for them in an AI-driven workplace by helping them understand the possibilities AI tools can unlock when coupled with human expertise.

Sara Gutierrez, a chief science officer at people science and technology company SHL, offered the following suggestions for HR/TR leaders:

• Provide training. Workers want to improve, but many of them don’t know where to start. “[An SHL survey showed] 25% of workers said they aren’t even sure what ‘AI skills’ are, and 1 in 5 feel pressured to upskill without support,” she said. “If employees don’t know what skills matter, how to build them or how AI will change their role, they won’t feel ready. Skill development can’t be an afterthought anymore; it has to be part of the core employee value proposition.”
• Keep humans visibly in the loop. “Our data shows employees overwhelmingly want human oversight, and knowing that real people are reviewing AI-supported insights reassures them they aren’t being evaluated by a black box,” she said.
• Make fairness measurable. By treating bias monitoring like a financial audit (i.e., systematic, recurring and transparent), an organization can signal that equity is not aspirational but operational.
• Provide regular updates on how AI is being used. Include the results of fairness audits and what changes are coming.
• Be clear with your intentions. Organizations that communicate, keep workers at the center of AI decisions and invest in upskilling are, in general, ones that will help employees move forward with confidence and trust rather than fear.

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:

• Employee Experience
• Employee Recognition
• Workforce Engagement