Hasty AI adoption threatens employee wellbeing and trust

Rapid AI integration may harm employee morale, mental health, and safety unless organisations prioritise human-centred strategies, warns the Australian Psychological Society.

As organisations raced to integrate AI into their operations, the Australian Psychological Society (APS) is sounding the alarm on the potential risks to employee trust, workplace safety, and mental health if robust safeguards are not implemented. With the Federal Government’s Economic Reform Roundtable underway this week, the APS is calling on organisations and policymakers to prioritise human factors in AI adoption to ensure sustainable organisational success.

Dr Zena Burgess, CEO of the APS, emphasised that while AI offers significant efficiency gains, its success hinges on strategic planning that places employees at the centre. “The key to successful AI adoption is not just about the technology – it’s about making sure people feel secure, informed, and valued as their workplace adapts,” she said. “Change succeeds only when the workforce is engaged and trusted to be part of the process.”

The APS emphasises a preventative approach. Organisational psychologists can help design protective mechanisms such as role design, proactive communication, fair accountability systems, and support for psychological safety—measures that can prevent widespread distress from poorly managed technological change.

READ MORE: Growth mindset in action: Unilever International pioneers a new era of AI-powered leadership

“AI technologies must ultimately benefit us all. Therefore, the implementation and use of these technologies must be psychologically-informed, with safeguards that consider motivation, trust, job design and culture,” Dr Burgess said.

She noted that history shows organisations that fail to manage risks to their people upfront often pay a far higher price later through costly rework, reputational damage, and harm to the workforce.

“Organisational psychology is about building protective strategies before problems escalate, ensuring AI adoption strengthens rather than destabilises our workplaces,” she explained.

While AI promises efficiency gains, the APS stresses that its true success will ultimately depend on the actions of company boards and managers. Their ability to lead effective behaviourial change within their organisations is what will determine whether AI becomes a benefit or a burden to the workforce.

Share this articles!

Latest Topics

More from HRM Asia

Subscribe to Our Newsletter

Stay updated with the latest HR insights and events,
delivered right to your inbox.

Sponsorship Opportunity

Get in touch to find out more about sponsorship and exhibition opportunities.