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Research
Near-term (1-2 years)
December 16, 2025

Creating psychological safety in the AI era

December 16, 2025MIT Technology Review AI

Summary

Rolling out enterprise-grade AI means climbing two steep cliffs at once. First, understanding and implementing the tech itself. And second, creating the cultural conditions where employees can maximize its value. While the technical hurdles are significant, the human element can be even more consequential; fear and ambiguity can stall momentum of even the most promising…

Impact Areas

cost
revenue
risk
strategic

Sector Impact

In Manufacturing, psychological safety is crucial for frontline workers interacting with automation and AI-powered systems; fear of job displacement or inability to adapt to new technologies can hinder adoption and reduce efficiency. In Finance & Insurance, where AI is used for fraud detection and risk assessment, employees must feel comfortable challenging AI-driven insights without fear of retribution. In Healthcare, where AI is used for diagnostics and treatment planning, trust and acceptance among medical professionals is critical for patient safety. All three sectors are impacted by the need for a safe environment that encourages innovation, proper use, and flagging issues effectively.

Analysis Perspective
Executive Perspective

Organizations must prioritize creating a supportive environment where employees are encouraged to experiment with AI tools, provide feedback on their performance, and challenge their outputs. This includes providing comprehensive training, establishing clear communication channels, and empowering employees to identify and address biases or errors in AI systems. Lack of psychological safety will stifle innovation, reduce the effectiveness of AI systems, and potentially lead to costly mistakes.

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