In recent years, the adoption of Artificial Intelligence (AI) technologies by business organizations has gained remarkable prominence across various sectors. However, decision making about adoption of AI has introduced a heightened level of uncertainty and fear among employees. Decision making about adoption of new technologies like AI generally takes place at upper echelon of managerial hierarchy, without considering behavioral factors relating to employees. Decision making under such an uncertain situation where perceptual concerns of the employees are not addressed, creates internal disharmony in the business organization.
PwC’s annual global workforce survey, quoted by BBC, showed that a third of respondents were worried about their role being replaced by technology. Business organizations have always been finding ways to adapt to new technologies, but “AI arms race” is creating a fear of unknown, having an unnerving effect on workers, enhancing uncertainty in organizations. The imminent threat of layoffs is creating cognitive dissonance in employees, having lasting impacts on their motivation and well-being.
As Professor Kirk Chang observed, “executives focus on profit as the priority, and people are an expensive resource”. The pertinent questions, therefore, are: Are managers responsible for decision making and devising a digital transformation strategy that takes into account anxieties and uncertainties of their workforce? Are they communicating properly with their employees about the transition process? Are they moving to create a work culture where workers’ fears and emotions can find expression in a trust-based environment? And finally, how a strategy based on participative and trust-based decision making be created to address and reduce uncertainty in decision making?
AI has revolutionized industries like healthcare, finance, and manufacturing, introducing unprecedented levels of automation and efficiency. Yet, the decision-making process around AI adoption largely bypasses the psychological and emotional concerns of the workforce. This neglect has consequences that ripple through the organization, leading to internal discord, reduced morale, and hindered performance.
A fundamental aspect of ameliorating these concerns lies in effective communication. Managers must actively engage with their employees throughout the transition process, creating an environment where workers’ fears and emotions can find a voice. Trust-based communication channels can empower employees, allowing them to express their concerns, seek clarifications, and actively participate in shaping the organization’s future.
Transitioning towards trust-based, participative decision-making is not only a matter of employee welfare but also an essential strategy for reducing uncertainty in AI adoption. This approach promotes transparency and collaboration, ensuring that employees feel valued and involved in the decision-making process.
Building trust within an organization is a multifaceted endeavor that encompasses not only clear communication but also a commitment to fostering a culture of openness. Managers need to actively listen to their employees’ concerns, act on their feedback, and provide continuous support as AI integration unfolds. Through collaboration and co-creation, organizations can harness the collective intelligence of their workforce, potentially unlocking innovative ideas and solutions that can mitigate the uncertainties surrounding AI adoption.
In conclusion, the era of AI brings undeniable benefits to businesses, but it also brings a host of uncertainties for the workforce. The decision-making process should no longer be the exclusive purview of upper management; rather, it should be a collaborative effort that respects the concerns of the entire workforce. Organizations that prioritize trust-based, participative decision-making will not only alleviate employee anxieties but also gain a competitive edge in a rapidly evolving business landscape. In the end, the best decisions are those made together, with employees and management working hand-in-hand to secure a prosperous future.
The writer is an MBAfrom the Schulich School of Business, Canada, specializing in the field of strategic management.
He can be reached through LinkedIn at https://www.linkedin.com/in/wijdannisar/
