The Hidden Risks of AI in HR – A Psychosocial Hazard?
AI in HR is on the rise, promising efficiency and objectivity. But as Amanda Lyras of Clayton Utz highlights, AI-assisted HR systems come with risks—ones that impact trust, mental health, and workplace culture.
I’ve long discussed institutional betrayal, fairness, and psychological safety. AI could magnify these concerns, turning workplace issues into psychosocial hazards that harm engagement and well-being.
AI in Hiring and Firing: The Bias Problem
Algorithms reflect biases in AI training data. As Lyras notes, AI in hiring and termination can disadvantage workers needing special consideration—those with disabilities, ESL backgrounds, or neurodivergence.
When employees feel unseen or unfairly treated, resentment builds. This isn’t just an HR issue—it’s an institutional trust issue, and everything that flows from that.
Workplace Surveillance and Mental Health
AI-driven monitoring can enhance productivity insights, but excessive surveillance erodes trust and fuels anxiety. If employees feel watched rather than supported, we create a psychologically unsafe workplace.
Performance Assessment: The Human Cost
AI-driven evaluations risk reducing employees to data points, ignoring context and contributions. If AI mislabels someone as underperforming, it can lead to disengagement and quiet quitting.
The Compliance Imperative
Psychosocial risks from AI now fall under workplace health and safety laws. Increased stress, anxiety, and perceived injustice can have legal consequences.
The Path Forward: AI With Empathy
Technology should support, not replace, human decision-making. Leaders must:
Ensure AI decisions are explainable and unbiased.
Retain human oversight, especially in hiring and firing.
Use AI as a tool, not the final word, in performance reviews.
Balance workplace monitoring with trust and transparency.
AI is powerful, but mishandled, it erodes trust, mental health, and engagement. Concerned about AI’s impact on your workplace? Let’s talk.
Contact me for a conversation about safeguarding your team’s well-being.
