While rapid digital transformations can bring many business benefits, a new study has revealed that they also affect mental health. Nearly nine in 10 UK business leaders say they suffer from technology-related stress that is severe enough to disrupt their sleep.
BT commissioned a survey of 2,000 business decision-makers to find out how the pace of digital change is affecting their mental health. It revealed that AI is the biggest cause of problems, with three in four respondents saying it had made them feel stressed or anxious over the past year.
These mental health implications also have an economic impact at both a business and national level. Estimates suggest that “tech paralysis”, where companies delay investment in technology due to the stress it could bring, could cost the UK economy £11.79 billion by 2030. BT research estimates that 104,000 companies British women could opt out of digitalization this year due to pain. of implementation, transformation and improvement of skills.
Smriti Joshi, lead psychologist at AI-powered mental health platform Wysa and a member of the British Psychological Society, told TechRepublic that the study's results were “alarming, but not surprising, given the long-standing implications of the rapid digitalization for mental health”.
“The pandemic caused an unprecedented acceleration of digital transformation, forcing companies to adapt quickly to survive and compete, often without adequate support,” he added in an email.
“The increasing complexity of technology and the constant pressure to stay ahead in a competitive market create a perfect storm of stress and anxiety. Fields like artificial intelligence and machine learning, along with increased cybersecurity threats, only intensify these feelings, leading to sleepless nights for professionals and business owners.”
Why AI is the biggest concern for UK business leaders
When it comes to AI, the biggest concern for business leaders is data privacy and security, cited by 34% of respondents. The rapid spread of AI applications in enterprises over the past two years has exposed them to new security risks, such as rapid injections and data poisoning attacks. Recognizing this, in November 2023, the UK's National Cyber Security Centre, together with the US Cybersecurity and Infrastructure Security Agency and international agencies from 16 other countries, published guidance on the security of cyber security systems. AI.
Additionally, 29% of BT respondents are concerned about the quality and reliability of AI. In fact, Stanford University's 2024 AI Index Report found that “using AI without proper oversight can lead to decreased performance.” For example, there are widespread reports that hallucinations are prevalent in large language models performing legal tasks.
According to BT, one in five business executives see AI as an existential threat to their business. The AI Index report concluded that AI enables workers to complete tasks more quickly and improves the quality of their output, indicating the business benefits of the technology. However, there is a chance that widespread productivity increases could work the other way, as a recent study by IT support company Auxilion found that 49% of UK IT decision makers fear that AI will make your companies' services redundant in three to five years.
SEE: 81% of IT teams will grow despite the adoption of AI, according to a Gartner report
Cybersecurity, technological transformation and digital skills are sources of stress
Cyber security
The BT survey found that 32% of business leaders cite cybersecurity as a source of technology anxiety. This is not surprising, considering that it is estimated that 22% of UK businesses suffered a cyber attack in 2023 and the figure is predicted to rise due to the increasing accessibility of generative AI.
Cybersecurity is considered one of the biggest technological threats to companies this year. A recent report from Microsoft and Goldsmiths at the University of London found that only 13% of UK businesses are resilient to cyber attacks, with 48% considered vulnerable and the remaining 39% facing high risk.
The implications of a successful cyberattack are also widespread, affecting the company financially and reputationally. One study also found that successful ransomware attacks can lead to heart attacks, strokes, post-traumatic stress disorder, and other physical and mental health problems.
SEE: How can companies defend themselves against common cyber threats?
Technological transformation
A quarter of company directors and executives surveyed by BT said they were concerned about executing a successful technology transformation. These fears are valid; Research from McKinsey ruled that digital transformations only tend to have a success rate of around 30%. That said, 62% of BT respondents recognize that such transformation is critical to the survival of their business, but remain concerned about the pace of technological evolution.
Keeping up with the latest technologies in the workplace is a source of stress in the lives of 88% of respondents, while 59% say technology is advancing so quickly that they worry about the future of their business. The two sectors that are most concerned about the impact of digital transformation are human resources and financial services. The Bank of England recently warned that the widespread adoption of AI in the financial sector “could pose risks to system-wide financial stability”, including cyber threats and market biases.
SEE: 4 ways to drive digital transformation across the UK
Digital skills
In the BT study, 24% of business leaders cited the current digital skills shortage in the UK as stressful. Research by Amazon Web Services in 2023 revealed that more than two-thirds of UK businesses found it difficult to recruit the digital workers they needed, with 45% saying this was due to a shortage of qualified applicants.
Expert Advice for Companies with Leaders Experiencing Tech Anxiety
Joshi shared the following advice for companies whose leaders experience technology-related stress:
- Provide opportunities for business leaders to upskill and train in the technological and digital skills needed to help them feel more confident in handling new technologies.
- Create support systems where leaders can share experiences and strategies that can provide emotional relief and practical advice.
- Prioritize mental health initiatives for both leaders and employees with programs specifically designed to address technology-related stress for all staff members.
- Foster a culture that values mental health, upskilling, regular breaks and work-life balance.
- Leaders should delegate responsibilities and seek support from expert organizations or trusted partners during phases requiring technological transformations. This helps distribute the workload but also provides experience that can ease transitions and reduce anxiety.
