AI and the Workplace: Putting People at the Center of Innovation
AI and the Workplace
Recently, the news was all abuzz with the findings that 95% of AI pilots fail. This headline followed from the results of a report on AI ,The GenAI Divide: State of AI in Business 2025, published by MIT Media Lab’s NANDA Initiative. While the report was specific to AI start-ups, the news was misinterpreted by many to suggest that implementations of AI in businesses fail 95% of the time. And it shook the markets. No doubt we are obsessed with AI and how it will impact organizations from for profit businesses to not for profit educational institutions. We wonder if jobs will be lost as a result of AI, if productivity will be affected, and certainly how the bottom line will fare as costly AI tools are integrated into workplaces.
We are taking a different focus on AI impacts on the workplace at Transformational Strategies Group. We wish to help organizations make smart decisions about AI implementation, and our focus begins on the people in your workplace. We ask the question: what effect can AI have on your employees and how can we examine and understand those effects to support your organization?
At TSG, we understand the psychology of AI and how that can affect people. We utilize Self-Determination Theory, a rigorous and empirically supported theory of human functioning to delve into how AI can impact workers. What we know is that humans have three primary needs to attain wellbeing in any domain, including work. Your employees need to feel like they have autonomy and are not controlled by AI. They need to feel like they can master a work environment where AI is a tool or team member. And your employees need to continue to feel connected to their fellow employees and to the goals, mission and vision of the organization. When these three needs are supported, your employees thrive and are productive. However, when they are thwarted, performance and productivity are negatively impacted.
We believe the decision to implement AI and how extensively it will be implemented in any organization should be a thoughtful process considering many levels of impact, including understanding how your workforce will respond and how to manage that change positively. Let Transformational Strategies Group be part of your AI implementation strategic planning for success.