69% of Workers Are Disengaged in the AI Era: A CEO Explains Why and How Leaders Can Fix It

Why Are So Many Workers Disengaged in the Age of AI?

A recent Gallup report found that 69% of U.S. employees feel disconnected or disengaged at work—the highest level since 2014. This shocking statistic shows that while artificial intelligence boosts productivity, it's also breaking trust between leaders and their teams. According to Tiffany Gaskell, CEO of Performance Consultants, the problem isn't AI itself—it's how leaders are using it.

The Hidden Cost of AI: Broken Trust and Fear

AI helps leaders work faster and cut costs. But when used poorly, it destroys the psychological safety employees need to thrive. Here's what's happening:

• Leaders rely on AI-generated messages instead of having real conversations with their teams.
• Performance reviews become robotic, with managers using AI to create development plans without listening to what employees actually need.
• Fear of job loss is rising—over 70,000 tech layoffs happened in early 2026 alone, many tied to AI automation.

When employees feel unsafe and unheard, engagement drops. And without engagement, innovation dies.

AI Boosts Productivity but Kills Innovation

Gaskell warns: “Organizations chasing productivity gains through AI metrics are winning the efficiency game, but losing the innovation game.” Why? Because creativity requires psychological safety—an environment where people can experiment, fail, and learn without fear. AI-driven micromanagement destroys that safety.

The Two Types of Leaders in the AI Era

According to Gaskell, leaders fall into two camps:

• The Efficiency Chasers: They use AI to replace human judgment, sending automated notes and skipping real conversations. They get short-term gains but lose long-term trust and innovation.
• The Empowerment Builders: They use AI to remove busywork, freeing themselves to coach, listen, and develop their people. They create a culture where employees feel safe to innovate.

The second group wins in the long run.

How to Implement AI as a Leader in 2026

Here are four practical ways to use AI without breaking trust:

• Use AI insights to understand your team better—not to replace your intuition. Let data guide your conversations, not control them.
• Automate admin tasks like scheduling, note-taking, and reporting. Use the extra time to coach your team and invest in their growth.
• Leverage AI for upskilling—use tools to help employees learn new skills at their own pace.
• Encourage experimentation by letting your team use AI in their workflows. Celebrate learning, not just results.

Final Question: What Kind of Leader Will You Be?

The AI era offers a choice. Will you chase short-term gains and risk losing your team's trust? Or will you empower your workforce to grow, innovate, and bring their best selves to work? As Gaskell says, “Psychological safety has to be present for creativity to happen.” The leaders who remember this will thrive. The rest will watch their teams disengage.