London, 21 October 2025 – A widening gap in how employees feel valued at work is being fuelled by the rise of artificial intelligence, according to new research from The Perkonomics Report 2025 by Perkbox.
The study, based on responses from 4,000 UK employees and 1,000 employers, identifies technology and AI as one of the most significant new factors shaping how people feel recognised and appreciated in their roles. Yet while employers view AI as a positive force, employees express growing unease about its impact on their sense of value and accomplishment.
Sixty-nine percent of employers believe AI is improving the employee experience overall, and nearly half (47%) think it has no direct effect on how valued people feel. However, only 38% of employees say AI tools make them feel more valued, while 11% feel less valued and 38% say that using AI at work reduces their sense of personal accomplishment.
Pippa Van Praagh, Vice President of Operations at Perkbox, says: “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.”
This sentiment connects to broader concerns across the workforce. The report found that 42% of employees feel undervalued, 60% say this has harmed their mental health, and 34% are likely to look for a new role within the next year. Among those who feel undervalued, more than half (54%) say they are likely to leave their employer in 2026.
Doug Butler, Chief Executive Officer at Perkbox, says: “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,” concluded Butler.
