Tactics to mitigate the negative impact of introducing advanced technology on employees: Evidence from large listed companies in Japan

Abstract

This study examines how the introduction of advanced technology such as artificial intelligence adversely affects employees and the tactics to mitigate these negative effects. We surveyed 5438 employees working for large companies listed on the Tokyo Stock Exchange in nine industries in Japan. The questionnaire considered the five drivers of employee attitudes (skill acquisition, fair wages, work/life balance, relationship with supervisor, and diversity of human resources) as well as the introduction of advanced technology in workplaces. Using structural equation modeling, we revealed that the introduction of advanced technology increases turnover intention. While the effect is not observed for sales and marketing, it is evident among back-office and software development personnel. Further, this effect is more pronounced among younger workers and those who change jobs more frequently. Managers should consider not only the positive effect of cutting-edge technology, but also its adverse impact on employees.