Here’s why workers panic about AI—and what leaders can do to support them

As artificial intelligence reshapes business at breakneck speed, offices are awash in a new anxiety: Are the algorithms going to replace our jobs?

And this AI-driven panic is more than sporadic water cooler chatter. The 2024 Work in America survey by the American Psychological Association (APA) reveals that 41% of workers are concerned about AI taking their jobs. Among millennial and Gen Z workers—who are more likely to use AI on the job—a more startling 50% are worried. That’s right: the workers most engaged with AI feel more threatened by it.

For business leaders eager to harness AI’s potential, this anxiety cannot be ignored. Successful leaders address AI panic head-on and are empathetic to workers’ concerns. This approach isn’t necessary just because it is the right thing to do; it’s essential for sustaining a company’s success and fostering a sense of optimism about the future.

The AI revolution is already underway. Use of generative AI by organizations shot up from 33% in 2023 to 65% earlier this year, according to a global survey by McKinsey. And in 2023, the World Economic Forum estimated that automation will lead to 26 million fewer jobs by 2027. But in the rush to embrace innovation and increase productivity, companies risk creating a climate of fear that could undermine any progress.

When employees don’t feel safe to speak up without fear of repercussions, productivity drops, morale plummets, and creativity stalls. Plus, if workers are worried about losing their jobs to AI, they may even resist or sabotage AI initiatives—particularly those employees whose subject matter expertise is crucial to making these projects work. Without alignment from a team’s stakeholders, expensive AI investments can flop. Indeed, one estimate found that 80% of corporate AI projects fail.

But in an environment of psychological safety, employees feel secure enough to take risks, voice concerns, and learn from mistakes. In this kind of healthy environment, workers are more likely to engage, share ideas, and contribute to the company’s growth. This isn’t just about maintaining morale; it’s about ensuring that AI becomes a tool for improving productivity, not undermining it.

Leadership plays a pivotal role in creating this psychologically safe workspace. Having empathy for workers’ feelings and fears is more than a soft skill—it’s a strategic necessity. Leaders need to listen to and understand their employees’ concerns and perspectives. They need to recognize the challenges that arise when technology shakes up everyone’s job. With open communication, leaders can create a trusting environment where employees feel supported and valued during the AI transition process. In return, employees are more likely to be satisfied and engaged at work. This can make the difference between a smooth transition and a workforce too worried to innovate.

Here are four strategies leaders should embrace in order to reduce AI panic in the workplace:

Transparency

The first strategy that leaders must embrace is transparency. Leaders should articulate to employees the company’s vision and strategy for adopting AI and emphasize how it will enhance their work, drive business value, and ensure the organization remains competitive. 

Communicate your AI adoption plans, including how AI will impact job roles and how employees will continue contributing. Use regular updates, Q&A sessions, and town hall meetings to keep employees informed and engaged. These interactions also provide opportunities to share AI initiatives, successes, and lessons learned—and  allow employees to voice questions and concerns.

Upskilling and reskilling

Second, leaders must ensure that workers are empowered to upskill and reskill in areas that will help them adapt to AI-driven disruption. 

Invest in training programs that equip employees with the skills to work alongside AI. By offering continuous learning opportunities—such as stackable certificates or online courses—companies demonstrate that they want their workforce to adapt and thrive.

Mentorship programs

Another strategy at leaders’ disposal is to host mentorship programs. By pairing workers with more experienced leaders, you can foster cross-company relationships and reassure fearful workers that previous generations have had to adjust to new technologies as well. 

Mentorship initiatives should align with your company’s broader organizational objectives, such as enhancing AI skills, fostering innovation, and building a culture of experimentation. Carefully match those with AI expertise to mentees demonstrating a genuine desire to learn. Structure the mentorship program with defined milestones, mentor support, and regular evaluation.

Give workers a voice

Perhaps most importantly, leaders should give employees a voice in how AI will be used. Solicit input, ideas, and concerns; involve employees in pilot projects, use cases, and governance decisions. For instance, frontline workers often have practical insights that can improve AI’s impact on daily operations.

In the race to embrace AI, it’s crucial not to lose sight of the human element. Taking extra steps to foster psychological safety may seem costly; however, the alternative—decreased productivity, higher turnover, and failed AI projects—can be far more expensive. When employees feel secure, they’re more likely to embrace AI and contribute to its success, ultimately driving innovation and efficiency.

Some argue that rapid AI adoption is essential for staying competitive. But rushing AI without securing employee buy-in can derail even the best initiatives.