The rapid rise of artificial intelligence, automation and digital workplace tools is transforming industries at an unprecedented pace.
From predictive analytics and wearable technologies to remote collaboration platforms and robotics, organisations are increasingly relying on digitalisation to improve productivity, streamline operations and maintain competitiveness. Yet, according to a new white paper from Institution of Occupational Safety and Health (IOSH), many businesses are still failing to place worker wellbeing at the centre of these transformations.
The report, titled The digital dilemma: balancing progress with worker protection, warns that while organisations are investing heavily in cyber security, AI implementation and digital skills development, the human consequences of these technologies are often overlooked. IOSH argues that digital transformation must be approached not only as a commercial or operational initiative, but also as a workplace health and safety issue.
The findings are based on research involving more than 1,000 senior business decision-makers across 22 countries. According to the report, the leading priorities for organisations over the coming year are ensuring cyber security and data protection, implementing and using AI, and improving digital capabilities among workers. However, ethical considerations and the broader health and wellbeing impacts of technology rank significantly lower on corporate agendas.
This imbalance is creating what IOSH describes as a widening gap between technological ambition and worker-centred priorities. Businesses are adopting new systems to increase efficiency and monitor productivity, but many are failing to assess how these technologies influence stress levels, mental health, job security and worker autonomy.
One of the most concerning findings relates to psychosocial risks associated with digitalisation. Hybrid and remote working environments, while offering flexibility, are also linked to growing reports of mental health concerns such as stress, anxiety and burnout. The research found that 60% of hybrid workers reported mental health issues, yet organisations continue to prioritise productivity tracking and data protection over wellbeing support.
Algorithmic management and digital surveillance also emerged as major concerns. Increasingly, businesses are using automated systems to allocate tasks, monitor worker performance and assess productivity. IOSH cautions that without transparent governance and human oversight, these technologies could undermine trust and increase workplace pressure. Employees may feel constantly monitored, while decisions made solely through algorithms risk overlooking individual circumstances and wellbeing considerations.
Technology fatigue is another issue highlighted in the report. Workers are often required to navigate multiple digital platforms, disconnected systems and continuous online communication channels. Rather than simplifying work, poorly integrated technologies can create frustration and confusion, contributing to higher levels of stress and reduced job satisfaction.
Despite these challenges, the report notes that workers are generally receptive to workplace technology. Most organisations surveyed said employees are informed about digital initiatives and encouraged to engage with new systems. However, IOSH argues that consultation alone is not enough. Businesses must ensure that health and safety considerations are embedded into every stage of technology adoption, from planning and design to implementation and ongoing monitoring.
The white paper also points to gaps in digital skills and training. Many organisations, particularly smaller businesses, struggle to keep pace with rapidly evolving technologies. Limited resources, uncertainty around best practice and a lack of industry-wide guidance are making it difficult for employers to implement digital systems safely and responsibly.
To address these issues, IOSH is calling for stronger collaboration between governments, businesses and occupational safety and health professionals. The organisation believes governments should establish clearer legislation and standards around ethical technology use, including mandatory worker impact assessments for AI systems and digital workplace tools.
The report also recommends integrating “safety-by-design” principles into technological development. This means ensuring that health, safety and wellbeing considerations are built into digital systems from the outset rather than addressed retrospectively after problems emerge. Human oversight, transparency in data usage and worker consultation are also identified as essential components of responsible digital transformation.
For businesses, the report stresses the importance of embedding occupational safety and health considerations within digital strategies. Risk assessments should not only focus on physical hazards but also address psychosocial risks linked to remote working, surveillance technologies, workload management and technology fatigue. Employers are encouraged to adopt human-in-command approaches that ensure final decisions remain under human control rather than being left entirely to automated systems.
IOSH also sees a growing role for occupational safety and health professionals in helping organisations navigate the digital transition. This includes developing expertise in technology-related risks, collaborating with IT and HR departments, and advocating for inclusive, human-centred workplace design.
Ultimately, the report argues that digitalisation should not be viewed solely as a tool for efficiency and profit. When implemented responsibly, technology also has the potential to improve worker wellbeing, enhance safety and create more sustainable workplaces. However, achieving this balance will require organisations to move beyond compliance-driven approaches and place people at the centre of innovation.
As businesses continue to accelerate digital adoption, IOSH’s message is clear: technology should serve workers, not the other way around.
