Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released its 2025 HR Technology’s Impact on the Workforce report. The study captures the views of over 8,500 employees globally on technology in the workplace.
As employers increasingly turn to AI and other technologies to optimize performance and boost productivity, the study reveals a critical communication gap: fewer than 20% of employees have heard from their direct manager or supervisor about AI’s impact on their job or the business. This communication void is fueling uncertainty about roles and skills, increasing the risk of disruption for both businesses and the workforce.
“Effective leadership in the AI era requires more than announcements about the latest AI tool – it demands visible engagement, honest communication and modeling adaptability. To address fear of technology’s impact on work, leaders must acknowledge uncertainty, prioritize the redesign of work and walk through change with their teams,” said Ravin Jesuthasan, Mercer’s Global Transformation Leader.
Concerns mount as AI adoption accelerates
In countries with the highest workplace AI usage, such as the United Arab Emirates (85%) and Mexico (72%), employees express the greatest concern about technology’s impact on their jobs. In contrast, in select European countries, where AI usage at work is lower, fewer than 1 in 10 workers share these concerns.
This anxiety is especially pronounced in the high-tech industry, where 63% of employees say tech’s potential to take over or change their jobs makes them hesitant to adopt new technology – higher than the global average of 53%.
Managers and executives are among the most worried about tech reshaping their roles – 59% and 62% respectively – compared to other professional workers (48%) and hourly workers (50%).
Managers play a critical role in alleviating workforce fears
The anxiety around technology is deepened by a lack of clear communication from leaders. Globally, fewer than one in four employees has heard from the CEO about how AI will impact their business, and only 13% of workers have heard from HR on the topic. This leadership vacuum is intensifying the fear among employees, distracting them from unlocking productivity gains that will help organizations do and achieve more.
While employees’ trust in immediate managers remains higher than in the C-suite, managers are often hamstrung by a lack of clear direction on AI strategy and what it means for their teams.
“Managers are pivotal culture carriers who translate corporate goals into the redesign of work and have real conversations about growth and upskilling. Investing in manager training for people leadership and AI fluency and holding them accountable for talent development is essential,” Mr. Jesuthasan added.
Culture and trust drive reskilling
“In today’s rapidly evolving tech landscape, the speed and impact of advancements demand that organizations continuously reskill and upskill the workforce. This is more important than ever to sustain business growth and workforce resilience,” Mr. Jesuthasan said.
Employees’ pride in their company strongly influences their desire to reskill. Those who are not proud of their employers are over 5.5 times more likely to spend no time on skill development. Mercer’s research also highlights that upskilling depends not just on access to learning opportunities but on the environment in which people learn. Of employees who report spending more than 15% of their time each month learning new skills, 54% say they are confident their manager supports their career advancement, while 49% say they feel a genuine sense of belonging within their team.
This trust creates psychological safety, encouraging employees to take risks, share knowledge and apply new skills.
“To capture AI’s full potential, organizations need to build cultures where learning is safe and perpetual, where agility is celebrated and employees feel a genuine sense of belonging,” said Mr. Jesuthasan.
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