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Forbes
4 days ago
- Forbes
The Psychology Of AI Transformation
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. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Forbes
11-06-2025
- Business
- Forbes
Artificial Intelligence For Business: Another Good Intro To The Issues
Artificial Intelligence Artificial Intelligence for Business, Kamales Lardi, is another good introductory book to the subject that suffers the same weaknesses as most of the other books I've read on the subject. Let's start with the good. The book is a very accessible, easy to read review of what business management wants to know about artificial intelligence (AI). Artificial Intelligence for Business, Kamales Lardi At a high level, the review of AI is good, but ignore the details. I'm not sure if it's because of confusion or a consultant's need to use the buzzwords, but I'm not thrilled with some of the details. For instance, machine learning isn't really limited to AI and was around in the business intelligence (BI) era. One thing good about the book is that it does mention BI, but doesn't focus on the area I've mentioned in previous reviews. A lot being pitched for AI's value has been done by BI for decades, including categorization and clustering. The difference is the volume of data that can lead to both higher precision and higher costs. It's up to management to look at the necessary precision for a problem and decide if the ROI for BI or AI is better in each situation. Both AI academics and consultants want to push it, but remember it's a key part of a modern solution and not a panacea. A section of the book I really liked was chapter four, ethics. Ms. Lardi does a very good job covering both the concepts and examples. It's the 'must read' of the book. The chapter before that is ok, where it covers AI working with other modern technologies. Again, at a high level, it's good; but the details are questionable. For instance, distributed ledgers are a key component of blockchain but that isn't clearly defined. While distributed ledgers in supply chains and elsewhere are valuable, the examples I've seen have only uses that because consensus slows down real business processes and isn't really needed. Again, I'm suggesting the reason that isn't made clear is the 'need' to push the blockchain buzzword. Another mixed blessing is the chapter on the future of work. While the author does make an excellent case for massively increased unemployment, that case is mitigated with the usual apologia that 'AI-driven automation does not substitute human labour completely … the human workforce will be able to focus on complex tasks.' As previously articles in this column, and those of plenty of other writers, have pointed out, there is a major problems with that thesis. People can do the complex tasks in a process because they began as rookies with simpler tasks and moved up to the complex ones as they gained skill. If AI does the simple tasks, how are humans to learn the complex ones. Are business owner more likely to take new hires and spend significant time training them for the complex task or demand AI that moves upstream and allows them to replace all employees? Yes, that's a rhetorical question. The rest of the book is a good explanation of what's needed to begin the process of expanding AI's use in business and, of course, setting up the reasons why a consultant can help the reader. The first part is good. The second is neither good nor bad, just what is to be expected. This is another book where the reader should always remember the author's background and purpose. It's far better than many coming out of academia, think tanks, and the blend of the two – people who came from academia, made a bunch of money at a startup without really understanding business, and who now think they know everything. The author is a consultant in the industry. The purpose of the book is to take her real life business experience, explain it to her market and, of course, drum up business. Remember that and it will be a positive read.
