The human rights risks associated with the rapid uptake of digital technologies in the workplace warrant increased investor attention and due diligence to promote decent work for all. A recent global survey found that 57% of workers expect AI to change the way they do their current job and 36% expect it to replace their current job. And those changes are likely to most affect those who can least afford it. An analysis by McKinsey, the consulting company, finds that as AI expands further into the workplace, workers in lower-wage jobs are up to 14 times more likely to need to change occupations than those in highest-wage positions, and most will need additional skills to do so successfully. Women are 1.5 times more likely to need to move into new occupations than men.

Further, while tech giants continue to invest billions in AI, some analysts believe the AI hype bubble is deflating, with new research papers “undermining some of the flashier claims about the tech’s capabilities.”  Academic research shows that algorithmic management systems can sometimes work against corporate objectives, with a negative impact on workplace morale and productivity. In 2023, an ICCR investor statement representing $4.5 trillion in investments under management or advisement warned that failing to create workplaces where all workers are engaged and their basic needs are met risks “operational disruptions and costs incurred from high turnover, employee unrest, and labor shortages; reputational erosion and loss of consumer confidence and trust; worsening product and/or service quality; and even litigation and regulatory action.”