Can AI make us happier at work?

Technology has always promised greater efficiency but in the race to automate there’s a risk we’re overlooking something essential – employee happiness. At WorkL we call this happy economics: the principle that happy people perform better. Our research across thousands of organisations shows that engagement, loyalty and innovation all flow from wellbeing, not the other way round.

For HR leaders the challenge is how do we design AI strategies that boost business performance without undermining the autonomy, purpose and connection that make people thrive?

Drawing on four decades of experience, including my time as managing director of UK food retailer Waitrose and as the founder of WorkL, here l explore what it takes to build a future-ready workforce where technology empowers rather than erodes human potential.

To build a future-ready workforce we need to start with a clear understanding of what actually drives happiness at work. Over the years, first at the John Lewis Partnership and now through WorkL’s insights across thousands of organisations. we’ve identified six consistent foundations of workplace happiness:

1. Reward and recognition
2. Information sharing
3. Empowerment
4. Wellbeing
5. Job Satisfaction
6. Pride in the organisation

These elements hold true across sectors and geographies. What changes, however, is the way they’re shaped, and sometimes disrupted, by emerging technologies.

How AI and automation are disrupting happiness drivers

AI and automation have the potential to enhance our working lives but only if implemented with care. Without a thoughtful approach technology can grind down the very drivers of happiness outlined above.

• Autonomy may be undermined by rigid, algorithm-driven processes that reduce decision-making freedom.
• Engagement can suffer when employees feel displaced by machines or when they’re managed solely by data dashboards.
• Purpose risks being lost if roles are overly dehumanised or stripped of creative input.
• Trust in leadership may decline if technology is seen as a tool for control rather than empowerment.

The HR dilemma: Productivity vs wellbeing

Balancing productivity with wellbeing is one of the defining challenges for HR leaders today. Too often technology is treated as a silver bullet for efficiency, streamlining processes, trimming headcount and accelerating output. But when employee happiness becomes an afterthought the long-term impact on performance and culture can be profound.

Wellbeing isn’t a perk, it’s a driver of performance. Disengaged employees don’t innovate. Workers who are surveyed but not heard won’t stay loyal. And when people feel like cogs in a machine, they rarely give their best.

Turning AI into a human advantage 

To ensure AI enhances rather than erodes happiness HR leaders must champion human-centred leadership within AI strategies. This starts by viewing technology not as a replacement but as a partner to human potential. AI can take over repetitive tasks, enabling people to focus on more creative, strategic, and meaningful work, if we design for it.

We must also rethink performance management in an AI world. Data can be a powerful tool for insight, but it must be balanced with empathy, context, and conversation. Employees are more than data points and leadership must reflect that.

Here are five actionable steps HR leaders can implement today to create an AI-powered workplace where happiness thrives:

1. Communicate with clarity and purpose
   Be transparent about how AI will be used, what it will change and how it will support employees. Involve people early, address concerns openly and ensure the rationale behind tech decisions is understood.
2. Invest in upskilling and reskilling
   Prioritise continuous learning to help employees adapt and grow alongside new technologies. When people feel prepared for change they’re more likely to embrace it.
3. Preserve autonomy and empowerment
   Avoid over-automating decision-making. Give employees space to shape their roles and contribute to how technology is integrated into their work.
4. Use data thoughtfully
   AI can offer valuable insights but it shouldn’t replace human judgment. Combine analytics with empathy and regular conversations to guide decisions.
5. Measure and monitor happiness
   Keep a real-time pulse on how people are feeling. Short, regular check-ins can surface concerns early and help leaders respond before issues take root.

Companies that place happiness at the heart of their AI strategy will outperform those that don’t. Why? Because happy employees innovate more, are less likely to leave, collaborate better and serve customers with greater enthusiasm. They don’t just adapt to change, they lead it.

In the coming years, as technology becomes more embedded in every role, the human side of work will matter more, not less. HR leaders have a unique opportunity and responsibility to ensure that AI is a force for good: not just for profits, but for people.

The dual forces of AI: Agentic AI and co-pilots

Artificial intelligence is already reshaping the workplace, with two forces emerging at the forefront: agentic AI and co-pilots. These tools have the potential to redefine how people work, collaborate and make decisions.

Agentic AI refers to systems capable of independent action, automating tasks and boosting efficiency but also raising important questions around ethics, oversight and employment. Co-pilots, in contrast, are designed to enhance rather than replace human input. They support decision-making, reduce cognitive load and enable employees to focus on work that adds greater value.

Used wisely both forms of AI can support a more empowered and fulfilled workforce. But this won’t happen by default. It requires intentional leadership – leadership that prioritises transparency, autonomy, inclusion and wellbeing from the outset.

As AI becomes embedded in every role the human side of work matters more, not less. The opportunity for HR leaders is to ensure that technology is introduced not just to serve efficiency but to enrich the employee experience and unlock human potential. Those who get this right will not only see stronger performance but will build organisations where people genuinely want to stay, grow and lead.

At its core workplace happiness is not a perk but a predictor. It signals whether people feel valued, trusted and fulfilled. And in an AI-augmented world those signals matter more than ever. Organisations that design technology with happiness in mind will not only avoid the pitfalls of disengagement but will tap into a deeper, more resilient kind of performance. One powered by people who are not just present but thriving.

Lord Mark Price is the founder of WorkL and WorkL for Business, and author of Happy Economics: Why The Happiest Workplaces Are The Most Successful (published by Kogan Page).