The Psychology Of AI Transformation

Forbes

2 days ago

Kamales Lardi, CEO of Lardi & Partner Consulting, is a digital transformation leader, leveraging neuroscience and human-tech psychology.
In the 1980s, I distinctly remember a wave of fear surrounding the use of microwave ovens. There were numerous stories about how "nuking" food with microwave ovens was removing nutrients from it, or even worse, causing food to become radioactive.
Decades of research have disproved these claims, proving that microwave energy changes to heat as it is absorbed by food, and does not make it radioactive or contaminated. Today, although microwave ovens have become a staple in most households, fears and anxieties surrounding their use still exist. Fresh waves of anxiety and fear often accompany innovation and new technologies; we fear what we do not fully understand or control.
When Progress Triggers Panic
In the current digital age, artificial intelligence (AI) represents the ultimate technology innovation that could transform every aspect of our lives. Although research and development in AI have existed since the 1950s, it is only in recent years that we have seen the technology truly accelerate and the potential for it to outpace us.
AI anxiety, as it is increasingly being recognized, is the anxiousness and fear caused by the rapid growth of AI and technological development. In research conducted by Calm, a guided meditation platform, nearly one in three adults (29%) feel anxious about AI, while over 18% characterize their feelings as fear or dread.
While AI transformations often focus on data, platforms, system integrations and upskilling, leadership teams need to understand and prioritize the psychological impacts of AI that can make or break its adoption in organizations.
Fear Of Obsolescence
As humans, we are driven by a primal survival instinct of self-preservation and to sustain life. In the modern age, this is closely linked to the work we do, our professional identities and the ability to earn a living. Threats to these instincts trigger the well-known fight-or-flight reaction that is hardwired in our brain.
The rise of AI adoption in the workplace not only disrupts the traditional ways of working but also threatens our sense of identity, professional worth and livelihood. As AI takes over routine tasks, some employees may struggle to find purpose in their jobs, particularly experienced professionals who were previously defined by their efficiency and depth of technical knowledge.
In an organizational setting, this fear could be detrimental to transformation, as people resist the adoption of new technology solutions by downplaying their value, avoiding upskilling and even sabotaging change efforts. It is therefore critical for leadership teams to understand that fear of obsolescence is a natural part of the transformation process and to address these fears openly and empathetically. The message to teams should be clear: AI will augment human capabilities, and not replace them.
Loss Of Control And Autonomy
Autonomy is a fundamental aspect of psychological well-being. The lack of control or autonomy may result in increased cortisol levels (stress hormone), feeling powerless, emotional exhaustion and decision paralysis. On the flipside, creating a sense of autonomy is a core element of motivation that can drive positive behavior change and engagement.
Organizations are increasingly adopting AI-based technologies in roles that involve judgment or discretion. For teams working with these intelligent systems, it may feel like handing over decisions to machines and a loss of individual agency. This situation is compounded by the "black box" effect of AI, where the internal workings of the system and processes attributed to creating outputs are not fully transparent or understood by humans.
For sophisticated decision systems, the outputs may be complex and opaque, requiring specific upskilling for employees to understand, interact with and take action on. Additionally, outputs and recommendations may be consistent or biased, creating a trust gap as teams hesitate to rely on AI in a meaningful way.
To counter this, it is critical to design and implement AI-based systems that are explainable, transparent and governed by human oversight. When people understand how outputs are being developed and retain the ability to override or contextualize them, they are more likely to trust and embrace AI.
Cognitive Overload And Fatigue
AI transformations have an organization-wide impact, often coming on top of other digital initiatives, new ways of working, upskilling and reskilling initiatives and organizational shifts. This creates a complex environment with many layers of change and a level of uncertainty that could last months or even years. The resulting cognitive overload and fatigue may cause people to disengage, resist change or even burn out entirely.
Additionally, there is a real risk of creating an internal divide in the organization, where digital natives may choose to embrace new technologies while others may feel left behind. This creates an environment of disruption, resentment, siloes and even quiet rebellion against transformation efforts.
Leadership teams need to plan and pace the transformation process carefully to avoid overloading teams with too many changes at once. Clear and consistent communication at every phase is also critical, allowing people the opportunity to understand what will happen and how changes will be executed. It is also crucial to foster inclusivity in the AI journey by offering equal access to learning and development programs designed for all levels of digital maturity, as well as rewarding adoption behaviors across all functions and levels.
Embrace The Human Side For Success
As AI reshapes business operations, strategy and customer engagement, organizations must accept that success in AI transformation still hinges on one critical element: people. The psychological impact on employees can make or break AI adoption, and leaders who fail to recognize the human impact of AI transformation risk outright failure. When employees feel like they are part of the AI transformation journey, rather than something "done" to them, they will feel motivated and accountable for its outcome.
I believe that AI-based solutions will be a staple in most businesses and households, just like the microwave oven. By adopting a human-centric approach, we have the opportunity to quash the fears surrounding AI transformation well in advance.
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