AI in Business: Mental Health implications

AI in Business

In today's rapidly advancing world, Artificial Intelligence (AI) has become a key player in many areas of business. This article considers how different businesses are using AI and its potential effect on mental health.

AI-based startups are rising globally, reflecting increased demand and acceptability for AI. The United States leads in the number of AI startups, followed by China, the United Kingdom, and Israel1. AI has spread across almost all business sectors, promising better results and an improved experience by providing various functions and services2. For instance,

  • Healthcare: Drug development, disease diagnosis, health monitoring, digital consultations, AI-assisted surgery and medical treatment.
  • Education: Educational apps, online teaching.
  • Retail: Online shopping, automated customer service, product recommendations.
  • Financial and Banking Services: Online banking, robo-advisors, chatbots for customer service, fraud detection.
  • Agriculture and Food Science: Crop and soil monitoring, smart crop spraying, culinary robots.
  • Transportation: Supply chain management, warehouse sorting, packing, customer service.

The Gaming Industry – A Case Study

AI has significantly transformed the gaming industry, helping to create lifelike avatars, design games, and develop realistic non-playing characters for a more immersive experience. However, as technology and AI have advanced, so have concerns about mental health. The latest edition of the International Classification of Diseases (ICD-11) now includes Gaming Disorder (GD) as a recognized condition. Gaming disorder is marked by a lack of control, prioritising gaming over other interests, and continuing to play even as problems worsen, leading to significant issues over at least 12 months. Additionally, a study conducted in the UK found that gamers with this disorder often have other psychiatric conditions, such as ADHD, depression, autism, Asperger's, anxiety, self-harm, suicidal thoughts or attempts, substance abuse, and other behavioural addictions3 . To address the rising cases of gaming disorder in the UK, the National Centre for Gaming Disorders was established in October 2019. According to a 2023 NHS article, gaming disorder mainly affects teenagers, with the average age of those seeking help being 17. However, many patients are also children aged 13-14 and 16-174.

The Banking Industry – A Case Study

AI has enabled banks to largely replace in-person transactions in bank branches during office hours, by enabling 24/7 access via ATMs, online banking and banking apps. This has reduced the number of branches and the number of customer service staff required (although creating an increased need for IT staff). The impact of job losses in the banking industry specifically does not appear to have been well- researched. However, we know from research more generally that job losses increase mental health risks and it has been suggested that this in turn hinders future job prospects i.e. job losses increase both short term and longer term mental health risks. The pace of changes in working practices in banking, in part as a result of the increased adoption of AI, are also reported to be increasing mental health risks for those still working in banking. As early as 2017, a review of published research concluded, ‘Most studies showed that mental health problems had increased in the banking sector, and that they were stress-related. Examples began with anxiety and depression, carried on through maladaptive behaviors, and ended in job burnout.’5

The Knock-On effects of AI

AI in workplaces is usually created to boost productivity and help organisations achieve better financial results. However, as seen in the banking example above, AI can lead to job losses and also speed up the work pace for those remaining, leading to unrealistic performance expectations and causing employees to experience increased stress, overload, exhaustion, and burnout6-8. In the finance and retail industries, AI is commonly used for chatbots in customer service and self-checkout, which are mostly effective for basic customer needs. However, when customers need to deal with human employees for more complex issues, they often feel frustrated and disappointed because their expectations aren't met as quickly or efficiently. As a result, employees have to handle these negative emotions and manage difficult interactions, leading to emotional strain9. Conversely, in the production sector, AI can help create more collaborative workplaces by taking over basic, repetitive tasks. This allows employees to focus on more complex tasks that require teamwork, leading to better relationships and stronger group dynamics, which boosts their emotional engagement10.

Conclusions

AI has made significant strides across various industries. It is beginning to transform sectors such as healthcare, education, retail, finance, agriculture, and transportation. While AI offers many benefits, such as improving efficiency and creating immersive experiences, it also raises important concerns, especially regarding mental health.

In gaming, the rise of AI has contributed to more realistic and engaging experiences, but it has also led to increased cases of Gaming Disorder, which affects many teenagers and can be associated with other psychiatric conditions. The establishment of the National Centre for Gaming Disorders in the UK highlights the growing recognition of this issue.

In the workplace, as seen in the banking sector, AI's impact is mixed. While it can enhance productivity and foster collaboration by automating repetitive tasks, it can also lead to increased mental health risks through job losses and through higher stress levels and burnout due to increased demands and unrealistic performance expectations. In customer service, AI's limitations can frustrate customers and add emotional strain for employees. Overall, as AI continues to evolve, it is crucial to balance its benefits with mindful consideration of its effects on mental health.

Nehali Humane. October 2024

 

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