AI in the Workplace: Balancing Productivity and Psychosocial Risks

The following is an abridgement of an article originally appearing on the AIHS website.

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Exploring the Impact of AI on Workplace Wellbeing

The rise of AI and generative AI tools in the workplace is transforming how we work, but it also brings new psychosocial risks that need careful management, according to research from RMIT.

Benefits and Challenges of AI Integration

AI can streamline tasks such as real-time data collection on worker performance, reducing biases in evaluations, and automating feedback. However, these tools can also reduce essential social interactions between workers and employers, which can impact perceptions of productivity and working conditions.

Dr. Emmanuelle Walkowiak, a Senior Research Fellow at RMIT, highlights the dual nature of AI's impact: 

"AI tools can introduce psychosocial, health, and wellbeing risks. It's crucial for businesses to scrutinise these risks when deploying AI to ensure it benefits both productivity and worker wellbeing."

Research Findings on AI and Workplace Conditions

Walkowiak’s research, conducted with European collaborators, examines how technological and organisational changes affect work conditions. Findings reveal that while AI can reduce physical strain and improve work conditions, it often leads to less complex tasks, accelerated work rhythms, and reduced learning opportunities for workers.

In another study, Walkowiak and colleagues used 58 variables to measure psychosocial risks, such as job demands, control, workplace relationships, and economic insecurity. They found that performance appraisals can mitigate perceived psychosocial risks by improving workplace relationships and perceptions of fairness.

Ensuring Ethical AI Deployment

Walkowiak stresses that AI’s potential for productivity gains must be balanced with protecting workers' fundamental rights. 

“AI will never be a ‘workforce’ and we will not have ‘AI workers.’ It’s essential to audit AI risks and avoid dehumanising work.”

AI also poses risks such as privacy breaches, cybersecurity issues, and bias. Therefore, Walkowiak recommends that HR management focus on upskilling workers, improving job quality, and supporting fair AI deployment.

Call to Action for Decision-Makers

To address these challenges, Walkowiak advises decision-makers to:

• Upskill workers on AI risks
• Integrate AI risk management into business operations and strategy
• Develop frameworks to assess and mitigate AI-generated psychosocial hazards

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