Despite corporate AI investment reaching a staggering $252.3 billion in 2024 according to Stanford research, companies face a significant obstacle: worker skepticism and resistance to AI adoption. This paradox threatens to undermine billions in AI spending as frontline employees remain deeply wary of the technology.
The trust deficit is substantial. A Pew Research Center survey found that nearly one-third of workers believe AI will reduce their job opportunities in the long run. Meanwhile, research from the University of Melbourne and KPMG surveying over 48,000 people across 47 countries revealed that only 46% of respondents trust AI systems. This gap between corporate investment and employee acceptance has become one of HR’s most pressing challenges.
Ted F. Tschang, associate professor of strategic management at Singapore Management University, emphasizes that organizations rarely provide adequate time for workers to become comfortable with AI. He argues that HR leaders must create safe spaces for learning and experimentation with AI, starting with their own teams. This requires HR professionals to develop “AI fluency” — understanding the technology well enough to identify practical applications and guide workforce adoption.
Heather Conklin, CEO of corporate coaching firm Torch, notes that the AI era is forcing HR departments to reinvent themselves. Successful HR teams are treating their departments as testing grounds, experimenting with AI tools firsthand to build credibility. “They can’t drive it across the company if they haven’t lived it,” Conklin explains.
Dexter Bachelder, CEO of AI recruiting platform Propel People, advocates for a problem-solving approach rather than technology promotion. When workers see how AI addresses their daily challenges — reducing paperwork, automating tedious tasks, or improving processes — adoption follows naturally. Peer-to-peer recommendations prove particularly effective, with coworkers explaining practical applications carrying more weight than directives from management.
The transformation also presents opportunities for HR departments that have long dealt with inadequate technology. Traditional systems for learning management, engagement surveys, and performance reviews struggle to keep pace with rapidly changing organizational needs, creating an opening for AI-powered solutions.
Key Quotes
When organizations don’t set people up to use AI reliably, employees won’t trust it and won’t adopt it.
Ted F. Tschang, associate professor at Singapore Management University, identifies the core problem: without proper training and support systems, AI adoption fails regardless of investment levels.
They can’t drive it across the company if they haven’t lived it. They need to drive it from a place of credibility.
Heather Conklin, CEO of Torch, emphasizes that HR leaders must gain hands-on experience with AI tools before attempting to champion adoption across their organizations, establishing credibility through personal experience.
It’s not about HR promoting AI. It’s about the questions on employees’ minds: How can AI do some of my paperwork so that I can leave work earlier and get home to my family faster?
Dexter Bachelder, CEO of Propel People, argues for a problem-solving approach that focuses on addressing workers’ real pain points rather than promoting technology for its own sake.
If HR leaders aren’t able to figure this out, they’re going to be left behind.
Heather Conklin warns that HR departments face an existential challenge — they must successfully navigate AI adoption or risk becoming irrelevant in the modern workplace.
Our Take
This article exposes a critical vulnerability in corporate AI strategies: the assumption that investment alone drives transformation. The data is striking — $252 billion spent while only 46% of workers trust the technology. This represents a massive execution gap that could determine which companies actually benefit from AI versus those that simply spend on it.
The most insightful observation is the peer-to-peer adoption model. Top-down AI mandates typically fail, but when a foreman shows another foreman how AI solves their specific problem, adoption accelerates organically. This suggests companies should identify and empower AI champions within teams rather than relying solely on executive directives.
HR’s transformation from administrative function to technology strategist also signals a broader shift: every department must now develop technical fluency. The winners won’t be the most AI-literate organizations, but those that successfully translate AI capabilities into solutions for everyday worker problems.
Why This Matters
This story highlights a critical disconnect threatening to derail the AI revolution in corporate America. With over $250 billion invested in AI technology, the return on this massive investment hinges entirely on workforce adoption. If employees refuse to use AI tools due to trust issues and job security fears, these systems become expensive shelf-ware.
The article reveals a fundamental shift in HR’s role — from administrative function to strategic technology champion. HR departments must now bridge the gap between executive AI ambitions and frontline worker concerns, requiring new skills and approaches. This transformation has broader implications for organizational change management in the AI era.
The trust crisis also reflects deeper societal anxieties about AI’s impact on employment and workplace autonomy. With only 46% of workers globally trusting AI systems, companies face an uphill battle in realizing productivity gains promised by AI investments. Organizations that successfully build trust through transparent implementation, peer learning, and problem-focused deployment will gain competitive advantages, while those that force AI adoption from the top down risk employee resistance and failed implementations.
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Source: https://www.businessinsider.com/hr-big-challenge-get-workers-trust-adopt-ai-2025-12