Despite major AI investments, workplace fear dents adoption

Bengaluru: Creating psychological safety in an era of Artificial Intelligence (AI) requires more than good intentions or blanket HR policies; it necessitates explicit messaging about AI’s realistic capabilities, limits, and approved use cases, a new report by Infosys and MIT Technology Review Insights revealed.

It highlighted how employees often hesitate to experiment, challenge assumptions or lead projects due to fear of backlash, which undermines innovation even when the technology capabilities exist. The report shows that despite major investments in AI, workplace fear – particularly fear of failure – remains one of the biggest barriers to adoption.

More than four out of five respondents have said that psychological safety has a measurable impact on the success of AI initiatives, and 84% report direct links between psychological safety and tangible business outcomes. Importantly, fear is holding leaders back, with 22% of respondents admitting that they have hesitated to lead or suggest an AI project because of fear of failure or potential criticism. Three-quarters (73%) indicated that they feel safe to provide honest feedback and express opinions freely in the workplace.

Infosys CTO Rafee Tarafdar said when employees feel empowered to experiment without fear of failure, innovation thrives. This culture of trust and openness enables teams to unlock the full potential of AI, driving meaningful business outcomes and sustainable growth.

Meanwhile, Standard Chartered’s latest report revealed that beyond the hype and promise surrounding emerging technologies, including AI and digital assets, close to seven in 10 corporate leaders are focusing on building strong foundational systems in the short to medium term – notably cloud computing.

It said that corporate leaders in India are particularly optimistic about AI, with 74% ranking it among their top three technology adoption choices, followed by cloud computing (64%) and digital assets (46%).