New SAP survey data released today shows that employees’ understanding of AI varies greatly, which is impacting their attitudes toward the technology and those who use it at work.
SAP surveyed over 4,000 managers and employees globally about how AI is reshaping workplace dynamics and HR practices, and the results paint a complicated picture.
The AI Literacy Divide Is Shaping Workforce Perceptions of AI
According to the survey data, the biggest factor influencing the workforce’s opinions of AI is their level of AI literacy, or their ability to detect, understand, and evaluate the technology. Compared to people with high AI literacy, people with low AI literacy were over six times more likely to feel apprehensive, seven times more likely to feel afraid, and over eight times more likely to feel distressed about using AI at work. Additionally, nearly 70% of people with high AI literacy expected to see positive outcomes from the use of AI at work, compared to 29% of people with low AI literacy.
Respondents with high AI literacy were also more likely to have positive or egalitarian perceptions about how AI usage should – or should not – impact people decisions like performance reviews, career advancement, and compensation.
When presented with a hypothetical scenario where two employees have exactly the same level of performance in the same job, with one using AI to complete their work and the other not, research participants expressed divergent views on how AI usage should be considered when making important people decisions:
- Should AI usage improve performance reviews? More than half (55%) of people believed that employees who use AI should have better performance reviews than those who don’t use AI. This sentiment was even higher (64%) for workers with high AI literacy.
- Should AI usage factor into compensation? Forty-four percent of people with low AI literacy believed that employees who use AI should be paid less than those who don’t use AI. Conversely, 46% of people with high AI literacy reported they believed compensation should be equal, regardless of AI use.
- Should AI usage influence promotion? Forty-five percent of people believed that employees should have the same chance of promotion regardless of AI usage. Those with high AI literacy felt similarly, with the majority (57%) believing promotion odds should be equal regardless of AI use.
It is a long-standing premise in management that better performance reviews should yield higher compensation and better chances of promotion. These mixed results show that the use of AI has complicated this, and they provide a clear reflection of the complex moment in time organizations and employees are navigating. With any new technology comes a period of adapting our knowledge, attitudes, and behaviors related to it. These results show that even though AI adoption is accelerating, some employees are still grappling with foundational questions about the use of AI at work and forming their own assumptions – not just about the technology, but also about the people who use it.
AI in Hiring Practices
Interestingly, the findings also revealed that the majority of people want to work for companies that use AI in their hiring practices. Between 45% to 57% of people said that they would react positively if a company used AI tools in the hiring process, such as being more likely to apply for and accept a job offer, feeling more confident in their fit with their new job, and believing the hiring process to be more fair. This positivity was even higher for those with high AI literacy, with between 66% and 75% of the most AI-literate employees endorsing these positive reactions.
The previous results about the impact of using AI on work outcomes showed that people have strong mixed opinions about employees using AI to do their jobs. However, these results indicate that employees are much more universally accepting when it comes to organizations using AI to improve practices like hiring. Organizations hoping to improve their practices by increasing efficiency and reducing biases are likely to be more successful at attracting talent, and especially talent with sought-after AI skills.
What This Means and How to Address AI Literacy in Your Organization
From this research, it’s clear that as AI becomes a more widely used tool at work, organizations must focus on and invest in AI literacy to help employees understand this new technology, increasing adoption and ensuring everyone is equipped to benefit from it. Our data shows that the most important aspects of AI education to improve sentiment and adoption are knowing how to use AI to achieve one’s goals and make tasks easier and being able to detect when a technology uses AI.
Organizations can enhance AI literacy – and consequently AI adoption – through a variety of strategies, including:
- Hands-on experience: Provide opportunities for employees to work with AI tools in practical settings, encouraging experimentation and familiarity.
- Training and resources: Offer structured training sessions and resource libraries that cover AI fundamentals, specific tools, and real-world applications relevant to your organization.
- Change communication: Whan adopting a new tool, be clear about how it works and the expected impact it will have on an employee’s experience.
- Showcase wins: Share success stories about teams that have benefitted from the use of AI in their work and how it has positively impacted the organization.
- Peer learning: Identify employees with high AI literacy and create structured learning sessions designed for early adopters to help upskill their peers through mentorship and knowledge sharing.
- Promote a growth mindset: Cultivate an organizational culture that values curiosity and learning, helping employees to feel comfortable exploring AI technologies, asking questions, and providing feedback on their experiences.
Autumn Krauss is chief scientist at SAP SuccessFactors.