Artificial Intelligence, Employee Surveillance, and Workplace Trust: Redefining Human Resource Management in the Era of Digital Transformation

Abstract

Artificial Intelligence (AI) reshaped Human Resource Management (HRM) by introducing employee surveillance systems that transformed workplace monitoring, performance evaluation, and organizational decision-making. This study examined the influence of AI-driven employee surveillance on workplace trust within digitally transformed organizations. A quantitative research design was applied using a structured questionnaire distributed among 350 employees from technology-based, service, and financial organizations. The study analyzed employee perceptions regarding AI surveillance intensity, workplace trust, privacy concerns, transparency, and ethical HRM practices. Results indicated that AI surveillance systems strongly enhanced productivity and managerial efficiency (Mean = 4.18), while simultaneously increasing employee privacy concerns (Mean = 4.11) and workplace pressure (Mean = 4.25). Workplace trust remained moderate (Mean = 3.54), reflecting a negative psychological response toward excessive digital monitoring. Findings further showed that transparency (Mean = 3.88) and ethical HRM practices (Mean = 3.92) improved employee acceptance of AI systems. The study concluded that AI surveillance created a dual impact by improving organizational efficiency while weakening employee trust when ethical safeguards remained insufficient. Organizations that implemented transparent communication and fair monitoring practices achieved better employee engagement and trust outcomes. The research contributed to understanding the balance between technological advancement and human-centered HRM in the era of digital transformation. It highlighted the importance of ethical governance frameworks for sustainable AI integration in workplaces and emphasized the need to protect employee autonomy while utilizing advanced surveillance technologies for performance management and organizational growth.