Artificial Intelligence’s Impact on Society and the
Workforce: How can we use A.I effectively

School of Business, Capilano University
BADM460 Business & Society Research Project
Spring 2025
Instructor: Laurie Prange

Table of contents
Artificial Intelligence’s Impact on Society and the Workforce: How can we use A.I
effectively ........................................................................................................................ 1
Table of contents ............................................................................................................. 2
Abstract ........................................................................................................................... 3
Introduction ..................................................................................................................... 4
Methodology .................................................................................................................... 4
Systemic Literature Review ........................................................................................... 4
Procedure ................................................................................................................. 5
Tools ......................................................................................................................... 5
Results............................................................................................................................. 6
Limitations ..................................................................................................................... 18
Discussions ................................................................................................................... 19
Conclusion .................................................................................................................... 21
References..................................................................................................................... 22

Abstract
The rapid advancement of artificial intelligence has sparked significant debate regarding its impact on
the workforce. This report explores both the challenges and opportunities AI presents in the workplace,
with a focus on job displacement, skill gaps, and the ethical implications of AI integration. Through a
systematic literature review, this study analyzes recent research on AI's effects on the workplace. The
findings highlight a growing concern over job losses due to AI automation and the need for reskilling and
upskilling initiatives to help workers adapt to new technological demands. Ethical concerns, such as
transparency and overreliance on AI, are discussed in relation to organizational responsibility and the
preservation of fundamental human skills. The study concludes that AI should be seen as a tool to
augment human capabilities rather than replace them, emphasizing the importance of collaboration
between businesses, governments, and educational institutions to ensure a future where artificial
intelligence empowers rather than diminishes the human workforce.

Introduction

Artificial intelligence has been growing rapidly within the last decade; becoming more and more
prevalent in the workplace, workers are struggling to adapt. There are growing concerns about job
displacement, lack of training, and uncertainty about future work. However, at the same time, AI
applications are still seen optimistically due to AI’s potential benefits in the workplace. With this
technological shift, it is important for industry workers/employees to understand the role of artificial
intelligence and learn how to navigate and utilize AI in an effective manner. AI should be used as a tool
to assist and enable employees; not replace them completely and automate their work. In this research
report, the goal is to explore how artificial intelligence can impact the workplace and how industry
leaders and employees can use AI effectively to aid their work. The report highlights both the positive
and negative effects of using AI in the workplace and its repercussions/effects on employees.

Methodology
Systemic Literature Review
For this research paper, the methodology used for the literature review is the systematic literature
review process. This method helps identify, evaluate, and synthesize existing research revolving around
the topic of AI and the workplace. The review process helps reduce personal biases as it strongly focuses
on existing peer reviewed academic articles. In addition to supporting evidence from peer reviewed
articles, statistical data will help further highlight key points. The databases used for this research

consisted of Business Source Ultimate, Canadian Business and Current Affairs, Statista and Google
Scholar through Capilano Universities library database. Additionally, credible news articles and
interviews will be referenced to provide stronger evidence. The topic Artificial intelligence's impact on
society and the workplace: How can we use AI effectively?, was broken down into three smaller
questions for the research: “what the impacts of AI in the workplace are, what are the positive and
negative effects of AI in the workplace, and what are the limitations of AI in the workplace.”

Procedure
This research report was formed through the use of three search strategies: Key word searching, citation
chaining, and concept building. Key word searching consisted of words that directly related to the
research topic and searching through online databases. Key word searching helps form the basis of the
research and provides a starting point. Citation chaining takes a reference and examines the citations
used by the author. The author often cites other relevant sources related to the research topic; it is a
great way to expand research and understand the broader scholarly perspectives. The last search
strategy used was concept building. Concept building takes a topic and breaks it down into smaller
related concepts. From the broken-down smaller concepts, other concepts were added to help build a
focused framework that helped guide the research in a more focused direction.

Tools
Most of the academic journals/articles were found on the database Business Source Ultimate. News
articles were found through Canadian Business & Current Affairs, and Statistical graphs were retrieved
from Statista. Boolean operators were another tool used for this research report. The use of boolean

operators helped combine or exclude specific key words in the research, resulting in more precise and
effective searching.

Results
In Tschang and Almirall ‘s study, they argue that two recent perspectives have emerged with the
increase in artificial intelligence: augmentation and replacement. The augmentation view looks to aid
workers and enhance their capabilities, while the replacement view looks to replace the core tasks
(Tschang & Almirall, 2021). Starting with the augmentation view, the authors argue that for humans and
AI to coexist, one must see beyond the level of the task or job at hand and look at the effects on the
organizational level (Tschang & Almirall, 2021). An example given was the medical field, specifically
radiology. As a big part of radiology consists of medical imaging and the examination of them, tasks like
this can be taxing for medical doctors and their eyes. The use of AI in radiology would help analyze
medical imaging, reducing the workload for doctors. Additionally, AI has proven to have better pattern
recognition abilities than humans, resulting in less errors in diagnosis (Tschang & Almirall, 2021).
However, AI is still unable to discern different ethical and moral judgements (Tschang & Almirall, 2021).
That’s why AI still works best in a supportive role that helps enhance a medical professional’s work. In
terms of the impact on employment, the authors argue that it would depend on an organization's
workload. If an organization is lacking resources and workers, AI can greatly help reduce the workload
and improve efficiency; no effect to employment would occur as AI would be playing a more supportive
role (Tschang & Almirall, 2021). On the contrary, if an organization has many employees and an
abundance of resources, the introduction of AI may reduce the number of specialists required (Tschang
& Almirall, 2021). Looking through a replacement viewpoint, the authors argue that as organizations

become more digital, the chances of automation replacement increase (Tschang & Almirall, 2021).
Amazon and Tesla are some of the companies shown to be increasingly reducing human work to less
significant tasks such as monitoring and/or smaller jobs that automated robots cannot reliably complete
(Tschang & Almirall, 2021). Human resources are also another field where AI replacement has been
growing. Once dominated by specialized professionals, many human resources tasks have been
integrated into an automated system that tracks employee performance. For instance, quoted from
Carey in 2018, “Amazon's system tracks the rates of each associate's productivity and automatically
generates any warnings or terminations regarding quality or productivity without input from
supervisors” (Tschang & Almirall, 2021). As jobs become more machine led where workers perform
smaller tasks, overtime workers will become more and more deskilled (Tschang & Almirall, 2021).

PwC. (April 8, 2019). Future impact of artificial intelligence (AI) and likelihood of job displacements
caused according to business leaders in Western and Eastern Europe in 2018 [Graph]. In Statista

In another study, the relationship between Artificial intelligence and human intelligence was examined.
“Conversational agents, such as AI-driven chatbots and virtual assistants, significantly influence
management activities including customer service, decision support, and human resource management.
These conversational agents demonstrate the creation of synergy between AI and HI within an
organization and offer a more comprehensive understanding of AI's role in modern management
practices” (Islami & Mulolli, 2024).
The use of AI chatbots is an example of the benefits of an AI and human intelligence relationship.
Chatbots can help collect data like customer preferences and provide management with valuable data
to help drive organizational decisions. For example, customer service chatbots may give insight into how
services or products can be improved. Managers can then take customer feedback and discuss with their
teams the changes they need to make to better cater to their customers. AI and human intelligence
together create a synergy that helps give competitive advantages. According to Victoria wells from
Chronicle Herald, “Almost a quarter of Canadians now use generative AI such as ChatGPT on the job,
with more than 60 per cent using it over once a week, and one in five using it every day, according to a
recent report by KPMG International Ltd” (Wells, 2023). This data shows how Canadians are using AI
chatbots to assist with their work, most likely due to the increase in productivity and efficiency.
However, it should be noted that privacy concerns around AI chatbots are still a concern. Another news
article from Chronicle Herald by Marisa Coulton found that “some workers have also been putting
sensitive information into ChatGPT, such as private company financial data, information about
customers and clients and proprietary company data” (Coulton, 2023).

YouGov. (March 7, 2024). Opinions of consumers on whether artificial intelligence (AI) has improved
productivity at their workplace in 2024 [Graph].

In the study done by Garcia et. al. (2024), three hypotheses are proposed: “Artificial intelligence (AI)
applications in workplace settings significantly improve employee mental health and overall well-being";
“The implementation of AI-driven personalized wellness programs reduces the incidence of workrelated stress and enhances job satisfaction”; “AI systems used for monitoring mental health can predict
and mitigate risks more effectively than traditional methods” (Garcia et al., 2024). To determine if AI
applications would improve mental health and well-being, an analysis was proposed where a machine
learning algorithm would measure and estimate levels of stress, well-being, and the degree of
depression through biomarkers (Garcia et al., 2024). The data would be measured through a camera,

microphone, and a wearable device. After completion, the analysis found that the continuous
monitoring of mental health through AI applications greatly improved workplace well-being and mental
health. When studying the potential impact of AI through wellness programs, studies found mixed
results. Some found that AI improved well-being while some had increased levels of stress due to their
awareness of being monitored. For most, the programs helped reduce work-related stress and overall
increased job satisfaction. Lastly, AI was found to be more effective in identifying and mitigating risks
compared to older traditional methods due to its ability to monitor and identify potential hazards
(Garcia et al., 2024).

In Shela Mandala’s article, she examines emerging workplace trends with AI. The first trend she
identifies is the rise in financial stress among employees. “According to a 2023 study by Bank of
America, only 42% of U.S. employees rate their financial health as good or excellent, a significant drop
from previous years” (Mandala, 2024). The drop in people’s sense of financial security raises alarms
about employees’ mental well-being. Financial stress can often lead to lower productivity and higher
chances of employee turnover. Companies can adopt AI financial programs that help make
recommendations for employees on how to save, invest, and manage their finances (Mandala, 2024). AI
can help equip employees with tools to help them improve their financial literacy and security, resulting
in greater job satisfaction (Mandala, 2024). Another trend found was the increase in job displacement
due to automation. “A 2023 report from IBM found that 43% of CEOs have already reduced or
redeployed their workforce due to AI-driven automation, with another 28% planning similar actions”
(Madala, 2024). Companies need to seriously consider the economic impacts of implementing AI-driven
automation as employees are feeling increasingly more uncertain of their futures. Madala states
however, that AI can open new doors for employees and create opportunities through
reskilling/upskilling. An example of this would be Microsoft’s AI business school. The school contains

programs that teach and prepare employees for new AI and computing roles, ensuring they have the
skills necessary to keep up with changing demands. The last trend Mandala argues is the loss of trust in
leadership. Employees feel that the use of AI for employee monitoring can easily overstep and violate
their privacy (Mandala, 2024). Additionally, there is an absence of human connection when utilizing AI,
leaving employees feeling alienated (Mandala, 2024). This is true for customers as well. Younger
generations especially seemed to put great importance on human connection. A survey conducted by
Meridian Credit Union Ltd found that 56% percent of gen Z bankers were concerned about the loss of
human connection and 81% did not trust AI chatbots with their financial needs (Chronicle Herald, 2024).
To rebuild a sense of trust, Mandala suggests greater transparency on AI usage and policies, taking
accountability for AI-driven decisions, and creating an open environment for communication on the
usage of AI in the organization (Mandala, 2024).

PwC. (September 18, 2018). Number of jobs displaced by artificial intelligence and related
technologies in China between 2017 and 2037, by sector (in millions) [Graph]. In Statista.

Based on the Indiana Law Journal, Lobel proposes a new economic framework to provide better
safeguards for workers at risk from AI automation. “As machines and algorithms take over tasks
previously performed by humans, the income generated by capital investments in these technologies
grows, while wage income may stagnate or decline for many workers in many industries and
professions” (Lobel, 2024). Lobel is highlighting how traditional taxes on labour work need to change
along with the changing job market to sustain a viable work economy. New tax forms on revenue
generated from AI technology named “Robot taxes”, are proposed to reduce the effects of the AI market
(Lobel, 2024). These programs would help generate the resources needed to create social programs that
help support displace workers (Lobel, 2024). Lobel also suggests that reskilling and upskilling programs
should be created through a collaborative approach by the government, educational institutions, and
businesses to better match the demands and/or needs of displaced workers (Lobel, 2024). The CHIPS act
is an example of how the U.S. government is incentivizing semiconductor companies to invest in human
capital and create more job opportunities. The CHIPS Act aims to strengthen U.S. semiconductor
production and research through $13.2 billion in R&D and workforce development funding, a 25%
investment tax credit for manufacturing capital expenses, and requirements for recipients to support
small businesses and underserved communities while thousands of jobs (Lobel, 2024). The development
of the workforce is an important and big part of the CHIPS act. In Lobel’s research, he proposes a
universal basic income (Lobel, 2024). The income would help lessen the financial stress faced by
displaced workers and provide them with basic necessities while they are in the process of
reskilling/upskilling.

In one study, Miah argues that slow AI integration by organizations is not caused by the technology
itself, but the lack of organizational structure and preparedness (Miah, 2024). Miah suggests that
organizations need to first start with familiarizing their employees with AI. Create internal educational
programs that can help workers understand artificial intelligence and bridge the gap in any AI related

skills or knowledge. Organizations should then look at how AI could be used in the workplace; what
problems could potentially be solved through the use of AI? Before full implementation of AI, Miah
recommended starting small first. Introduce AI into smaller tasks to limit risks and gradually expand into
bigger operations for smoother integration.

Gabriela Ramos highlights UNESCO’s recommendations for policies on artificial intelligence. Ramos
argues that regulations and policies need to be updated to better protect and fight against possible
unemployment caused by AI. Ramos argues that workers should be equipped with or provided with the
opportunity to get education to reskill/upskill themselves (Ramos, 2024). Workers that are getting
displaced are suffering due to the lack of education/safety nets in place. UNESCO recommends
governments and organizational leaders to work together to fill the gap of skill-set requirements
(Ramos, 2024). IBM for example has one of the world's biggest reskilling programs.
“Dave McCann, president of IBM Canada, told the Star the re-skilling program - which offers free courses
through 170 partner schools and institutions across the world - will provide an estimated 35,000
Canadians with skills that will allow them to participate in a rapidly evolving job economy, and better
protect them from imminent layoffs” (Toronto Star, 2023).
IBM’s investment shows their willingness to invest in human capital and foster a healthy work
environment by providing safety nets and opportunities for its employees.

TalentLMS. (July 13, 2023). Company strategies to overcome the skills gaps caused by artificial
intelligence (AI) in the United States in 2023 [Graph]. In Statista. Retrieved April 17, 2025

In the commentary by Kopalle et al. (2024), it discusses the challenges faced by Grewal et al’s (2024)
three themes: AI replacing human intelligence, AI enabling artificial empathy, and the creation of novel
tensions (Kopalle et al., 2024). As AI capabilities grow, the number of workers losing their jobs will
naturally grow. Workers who have lost their jobs may find it difficult to secure new employment,
especially if they don’t have the necessary skills for the roles emerging due to AI developments (Kopalle
et al., 2024). This highlights the need for governments and organizations to take more social
responsibility in helping workers upskill and adapt to the changing job market (kopalle et al., 2024).
Society needs to have compassion for the lower skilled workers and create safety nets. There is also the

issue of the loss of human capabilities. Using GPS as an example, “the widespread use of GPS technology
has diminished people's ability to navigate and remember routes, and the reliance on smartphones has
reduced the need to memorize phone numbers” (Kopalle et al., 2024). People are becoming too reliant
on artificial intelligence to the point where skills needed in the past are no longer utilized and are
becoming obsolete. “If AI takes over tasks like writing, problem-solving, and even interpersonal
communication, what happens to the human capacity for creativity, critical thinking, and emotional
intelligence?” (Kopalle et al., 2024). Additionally, “Many AI algorithms, particularly those based on deep
learning, are often described as "black boxes" because humans do not easily understand their decisionmaking processes” (Kopalle et al., 2024). This makes it difficult to hold someone accountable when AI
makes a decision that may be ethically or morally questionable.

HR Policy Association. (May 28, 2024). Top Human Resources (HR) concerns regarding artificial
intelligence (AI) use in the workplace in 2024 [Graph]. In Statista.

The study by (Mukesh & Santhoshkumar, 2024) looks at the unorganized sector and examines how AI
creates challenges as well as opportunities for them. Starting with challenges, skill gaps are the number
one obstacle for the unorganized sector. Many of the unorganized sector workers lack the training or
knowledge for AI. Limited finances can also prove to be a hinderance. Often times, because of how
expensive AI can get, a lot of workers don’t see the benefit in making an investment that costly. There is
also the concern of unequal access to AI. If some unorganized sectors use AI while others can’t, it will
cause disparities in competition (Mukesh & Santhoshkumar, 2024). Unorganized sector workers could
also simply resist the change because of fear of being displaced. There are, however, opportunities for
the unorganized sector. Training programs developed by the government can help foster the skills
needed and empower workers. Governments can provide financial aid to help workers with integrating
AI. If integrated successfully, productivity can greatly improve, and costs may be reduced due to
streamlined workflows (Mukesh & Santhoshkumar, 2024).

“Employees are expressing sweeping concerns about the impact of AI on their jobs. We're seeing new
terms like FOBO, or fear of becoming obsolete, enter our lexicon. It's natural to feel this way. In fact, 74
per cent of Canadian (both employed and unemployed) job seekers do, expressing concern that
generative AI may replace them” (Toronto Star, 2023).
In a UK survey consisting of 867 participants, the study showed a hidden fear around artificial
intelligence. Participant age, education, and employment all varied greatly. During the focus group, only

15% of participants initially revealed their concerns about AI. It was only after facilitated discussions that
the number jumped to 88%. The study found that the highest concern among the study group was the
speed in which AI was being developed; the second greatest concern was the fear of losing their job to
AI; the third was data privacy. 96.3% were fearful of the development of AI, while 91% expressed
concern about losing their job (Gerlich, 2024). For 867 participants, these numbers show just how
concerned the majority of the public is towards AI. These statistics raise concerns as this data can
directly translate over to the workplace. If only 15% initially revealed their fears of AI, that means
workers may very well be hiding their fears of AI but are too scared to speak up in the workplace.
Workers may feel that they have no choice but to accept the integration of AI due to the fear of them
losing their jobs.

Commodity HQ, & MITRE. (September 19, 2023). How concerned are you, if at all, about the following
related to AI offerings like chatbots, image generators, and facial recognition tools? [Graph]. In
Statista.

Limitations
As this research report was conducted through a systemic literature review, the report is not without its
limitations. Firstly, all of the resources were taken from Capilano University’s library database. Although
the database contains academic journals, articles, and publications, Peer reviewed articles were
predominately used. It is possible that these findings may have created a narrow and limited perspective
on the topic. Secondly, artificial intelligence is still relatively new and being developed at a rapid pace.
Most of the resources were recent studies conducted around 2024. While the recency of the material
lends credibility to the analysis, these findings could change or be contradicted in the future as new
revelations come to be discovered, or new trends emerge. The findings of this report offer a snapshot of
the current impact AI has on the workplace and may not fully capture future developments. The report
focuses solely on AI’s impact on the workplace and does not explore areas beyond the workplace. For
the systemic literature review, secondary research was used exclusively for the report and no primary
research was conducted.

Discussions

Throughout my research, there were many challenges as well as opportunities that became noticeable
and often not recurring themes. One of the common themes found centered around job displacement.
Although AI has only been around for the last decade or so, workers are finding themselves unable to
keep up with the advancement of AI and their jobs are getting displaced. Organizations are replacing
traditional workers with AI-automated systems to complete tasks that may be deemed repetitive. As a
result, the displaced workers are struggling with finding new employment and job opportunities as they
lack the necessary skills. It was noted that unorganized workers were often the ones most affected by
AI. But it’s not just low-skilled workers who are prone to job displacement; certain high-skilled jobs are
beginning to use AI. The case of radiologists using AI to scan and analyze medical imaging proves that AI
may eventually even take over high-skilled tasks. AI’s pattern recognition ability is far greater than
humans; that's why less radiologists are needed than before. It’s due to the fact that AI can streamline
the work and yield more accurate results than humans.

Organizations need to consider their social responsibilities when implementing AI in the workplace. Yes,
businesses aim to generate more revenue, but it should not be done at the expense of an employee's
livelihood. New policies should be introduced to better protect worker rights and safety nets should be
put in place to give employees the chance to continue working. Organizations should create educational
programs designed to help workers either reskill or upskill themselves. Educational programs can help
workers bridge any skills gap they may have so that the workers can continue to be completive in the
job market. To encourage educational programs, governments can provide incentives to organizations
or sectors if they invest in educational programs to re/upskill their workforce. Efforts should be made

through a collaborative process between organizations, government policy makers, educational
institutions.

The research has also presented the question of whether humans have become over reliant on AI. As AI
becomes more advanced to varying degrees, there is a risk of humans losing fundamental skills. An
example mentioned was the reliance on GPS technology. Humans have become so reliant on GPS’s that
traditional maps have almost become obsolete. How much of the younger generations would be able to
navigate by themselves with a map nowadays. I reckon not many would be able to do so. This example
transfers over to our reliance on AI tools such as ChatGPT. ChatGPT has become so advanced where the
skill of critical thinking may not even be needed anymore. If humans become too reliant on AI chatbots
and do not think for themselves, there is a high chance that over time, we will deskill ourselves of these
basic skills. If workers no longer have any creativity, critical thinking, or literacy skills, why would
organizations hire them. Organizations could simply just use AI.

Lastly, organizational honesty needs significant improvement when it comes to the implementation and
use of artificial intelligence. Transparency is not just a best practice, it’s a necessity. Employees deserve
to know how AI is being used in their workplace, what kind of data is being collected, and how decisions
that affect their roles and performance are being made. Without clear communication and ethical
guidelines, AI can create an atmosphere of mistrust, anxiety, and confusion.

AI has a lot to offer in the workplace; however, it should be seen as a tool to help people do their jobs
better, not something that removes the need for people altogether.

Conclusion

In conclusion, while the rapid advancement of artificial intelligence over the past decade has raised valid
concerns such as job displacement, insufficient training, and uncertainty about the future of work; it also
presents significant opportunities. If implemented thoughtfully, AI has the potential to enhance
productivity, improve job satisfaction, and support employee well-being. To harness these benefits, it is
essential that employees understand the evolving role of AI and learn how to effectively engage with it
as a supportive tool rather than view it as a threat. This report has examined both the advantages and
challenges of AI in the workplace, emphasizing the importance of strategic integration. Ultimately, the
successful adoption of AI depends on how well industry leaders and workers collaborate to ensure that
technology empowers rather than replaces the human workforce.

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