A growing divide between how employees and employers perceive value at work is being accelerated by artificial intelligence, according to new research from Perkbox.
The Perkonomics Report 2025 — based on responses from 4,000 UK employees and 1,000 employers — identifies AI as one of the most influential factors shaping how people feel recognised at work. While most employers view the technology as a positive force, employees express growing unease about its effect on their sense of value and accomplishment.
Sixty-nine percent of employers believe AI is improving the overall employee experience, and almost half (47%) think it has no impact on how valued people feel. Yet only 38% of employees say AI tools make them feel more valued, while 11% feel less valued, and 38% report that using AI reduces their sense of personal accomplishment.
Pippa Van Praagh, Vice President of Operations at Perkbox, said: “AI can be a great tool to automate routine tasks and free up time for more impactful contributions. However, while employers see technology as a route to progress, many employees experience it as a loss of visibility and personal credit. Without a deliberate effort to connect its use to employee recognition, it risks making the undervaluation issue even worse. Unfortunately for now, our data suggests that AI isn’t quite the answer to solving the employee value issue.”
The report also reveals wider concerns around morale and retention. Forty-two percent of employees say they feel undervalued, and 60% report that this has harmed their mental health. One-third (34%) are likely to look for a new role within the next year. Among those who already feel undervalued, more than half (54%) say they are likely to leave their employer in 2026.
Doug Butler, Chief Executive Officer at Perkbox, said: “AI adoption is accelerating, but the human element must evolve with it. Recognition and communication are as vital to progress as the technology itself. In fact, 53% of employees say recognition is the number one driver of feeling valued.
“Technology alone won’t fix how people feel. It’s how employers implement it — with empathy, transparency and a focus on recognition — that will determine whether AI becomes a tool for value, or a trigger for disengagement. By linking automation to recognition and ensuring employees continue to see the impact of their work, organisations can turn AI from a source of anxiety into a driver of purpose and belonging.”
The findings highlight a growing imperative for leaders to bridge the emotional gap between technological advancement and human appreciation, ensuring that automation enhances rather than erodes the employee experience.
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