Marvin OnumonuArtificial intelligence (AI) is making workers feel more undervalued and disengaged, according to the Perkonomics Report 2025 by Perkbox.
Employers saw AI as a positive step, with 69% saying it improved the employee experience and 47% believing it had no direct effect on feeling valued.
However, only 38% of employees said AI made them feel more valued, 11% felt less valued and 38% said using AI at work reduced their sense of personal accomplishment.
Pippa Van Praagh, vice president of operations at Perkbox, said: “AI can be a great tool to automate routine tasks and free up time for more impactful contributions, however, while employers see technology as a route to progress, many employees experience it as a loss of visibility and personal credit.
“Without a deliberate effort to connect its use to employee recognition, it risks making the undervaluation issue even worse.
“Unfortunately for now, our data suggests that AI isn’t quite the answer to solving the employee value issue.”
The report found 42% of employees felt undervalued, 60% said this had harmed their mental health, and 34% were likely to look for a new job within the next year.
Among those who felt undervalued, 54% said they were likely to leave their employer in 2026.
Doug Butler, CEO at Perkbox, said: “AI adoption is accelerating, but the human element must evolve with it.
“Recognition and communication are as vital to progress as the technology itself.
“In fact, 53% of employees say recognition is the number one driver of feeling valued.”
Butler added: “Technology alone won’t fix how people feel. It’s how employers implement it, with empathy, transparency and a focus on recognition that will determine whether AI becomes a tool for value, or a trigger for disengagement.
“By linking automation to recognition and ensuring employees continue to see the impact of their work, organisations can turn AI from a source of anxiety into a driver of purpose and belonging.”
