Rebuilding trust for the age of AI

Artificial intelligence (AI) is transforming the workplace, offering unprecedented opportunities – but only for organizations that can navigate its challenges. At the heart of this transformation lies a critical issue: trust. Without it, the promise of AI will stall, leaving businesses behind in the ‘Intelligent Age’.

Leaders must confront the reality that trust is on the decline. BetterUp’s survey of more than 200,000 US workers, employees’ comfort in raising questions and concerns to leadership in 2024 has declined quarter over quarter since 2020.

This gap in trust risks undermining the very potential that AI holds for business transformation. In this age of disruption, it’s not just about adopting AI – it’s about rebuilding the trust needed to make AI work for your people and your organization.

Trust in leadership is at a crossroads – a challenge further amplified by the rapid adoption of generative AI (GenAI). McKinsey reports that 91% of organizations are unprepared to scale AI responsibly, while Accenture found that while 95% of employees valued working with GenAI, they don’t trust organization leaders to implement it thoughtfully.

About two-thirds (65%) of executives Accenture surveyed admitted that they lack the expertise required for the gen AI-led transformation. We also know from BetterUp’s own data that as a leaders’ self-ratings decline in key areas, their direct report’s ability to trust them declines as well – creating a cycle for even less trust.

When trust erodes, organizations pay the price. BetterUp research shows that a 10% decline in trust can slash financial performance by as much as $115 million for a $500 million company over just four years.

For leaders, the message is clear: trust isn’t a nice-to-have – it’s a business imperative. Accenture also reports that GenAI adoption has the potential to drive $10.3 trillion in economic growth. So bridging this trust gap is no longer optional – it’s the $10.3 trillion opportunity.

The foundation of rebuilding trust lies in creating an atmosphere where employees can voice concerns, take risks, and innovate without fear of retribution.

Leaders who prioritize this kind of work environment and exhibit authentic excitement for AI can create a ripple effect to develop stronger, more engaged teams that adapt to change, drive innovation and embrace AI.

We know many factors drive mindsets for employees – culture, peers and co-workers – but far and away the greatest influence on mindsets are based on who we report to. Numerous studies show that these leaders’ emotions and attitudes are contagious for those who report to them and AI is no exception.

BetterUp and Stanford looked at employee perceptions of AI and found the two most important mindsets for managers.

The first was agency, the sense of control or faith in our ability to handle a range of tasks and situations, while the second is optimism, our confidence and hope in positive outcomes.

When direct reports see their managers exhibiting agency and optimism towards AI, they themselves are 1.5 times more likely to use AI at work and they’re almost three times as likely to exhibit agency and optimism themselves.

As we move through an era of rapid change, managers need to be empowered to model these mindsets needed for the 'Age of Intelligence'.

When employees have this and a work environment that invites their voice, fearless innovation and risk-taking, that’s where we’ll see increased trust and embrace of AI. Only then can we unlock the transformational power of this technology.

Investing in leadership development isn’t just about improving managerial skills; it’s about equipping leaders at all levels with the tools to evolve workplace culture for the short and long-term.

Leaders must foster trust and create the right day-to-day environment for direct reports to rise to challenges ahead. This will not only help close the trust gap, but foster a workplace culture conducive to AI adoption, navigating change and feeling safe to innovate and take risks.

Start by actively listening to employees, encourage deeper dialogue and recognize contributions. To thrive long term, empower employees by providing ongoing coaching and personalized development opportunities to strengthen trust and foster mindsets needed for the lofty tasks at hand.

This is where investing in people pays the greatest dividends – by ensuring that every individual has the resources, skills and mindset to navigate unprecedented challenges.

AI will not wait for trust to catch up. As a leader, your next steps are clear: prioritize trust by building initiatives now.

Model the optimism and agency you need in your workforce, invest in leadership development for your managers, and foster a culture conducive to risk-taking and innovation. The future of your organization – and its place in the Intelligent Age – depends on it.