Early evidence suggests AI is reducing the need for some workers, such as those in customer service, and concern about AI's impact is evident in an ongoing survey.
AI has a trust issue. Workers are increasingly concerned that it could either replace them or significantly change their jobs. The worry doesn't stop there. A new study shows that distrust about AI extends to consumer products, as people express less interest in AI-enabled products, such as kitchen appliances or vacuum cleaners.
What ties these seemingly separate issues -- fears of job loss and wariness about AI-enabled products? It appears to be a matter of trust. Both workers and consumers are cautious about the role AI is beginning to play in their lives.
In New Jersey, fear is winning
The state government in New Jersey is conducting a 96-question survey through Aug. 16 to assess the potential effect of generative AI on the workforce over the next five years. The survey is directed at constituents.
We want to hear how residents view this technology, what their hopes and concerns are, and what they think are the top priorities.
Beth Simone NoveckChief AI strategist, State of New Jersey
Approximately 72% of respondents believe workers will feel less secure in their jobs due to fears of AI replacement, with 994 participants agreeing.
A majority -- around 69% -- also expect AI to lead to increased unemployment or underemployment, a sentiment shared by 931 respondents.
"We want to hear how residents view this technology, what their hopes and concerns are, and what they think are the top priorities," said Beth Simone Noveck, New Jersey state chief AI strategist, in an email response. "This two-way flow of information is an opportunity to not only create better policies but also a more responsive government."
Fed Dallas finds AI-related job losses
The fears of job replacement or underemployment expressed by New Jerseyans aren't groundless. On a broader scale, the Federal Reserve Bank of Dallas surveyed more than 360 businesses and found that 40% are currently using AI. It expects this number to rise to 56% by year's end.
One anonymous manufacturer in the report commented, "There is a strong potential for AI to automate or eliminate many clerical jobs in our business that will save our team time and money." The Dallas Fed declined to answer follow-up questions about the report.
Interestingly, the survey also suggests that companies planning to adopt AI foresee more workforce reductions than those already using it. Yet, smaller businesses find AI more challenging to implement and have less of an impact than anticipated.
Skepticism about AI is broad
Consumer skepticism toward AI isn't limited to the workplace. A new study from Washington State University, led by Assistant Professor Mesut Cicek, found that labelling products as AI-enabled can negatively affect consumer trust, whether it's an AI-powered refrigerator or a medical device. The study surveyed more than 1,000 people, and the results were published recently in the "Journal of Hospitality Marketing & Management."
While the study focuses on consumer products, Cicek said he believes the results show a broader anxiety about AI.
"There is a common concern in society that AI-powered tools and systems will replace most jobs, leading to widespread fear of job loss," Cicek said in an email to TechTarget Editorial. "It seems that AI is evolving into a competitor, rather than a companion in the eyes of some people."
Building trust in AI in the workplace
Duncan Harris, an analyst at Gartner, said "people like the idea of using AI and being in organizations that use AI. That's not the actual worry. The worry is how the organization will use AI."
In a recent survey by Gartner of about 3,500 workers, only 12% believed they would lose their jobs in the next two to three years due to AI. However, 56% felt AI would significantly change their jobs, such as in HR, where AI might handle routine questions, leaving employees to focus on more complex issues.
Harris warned that if employers mishandle AI deployment, they risk eroding trust, which could lead to higher turnover, reduced engagement and decreased productivity. To avoid this, he suggested a bottom-up approach to AI implementation, involving employees to ensure a smoother transition.
Patrick Thibodeau is an editor at large for TechTarget Editorial who covers HCM and ERP technologies. He's worked for more than two decades as an enterprise IT reporter.
