‘As organizations integrate AI into everyday work, they need to understand how its design shapes employee performance, human judgment, creativity, and organizational culture. Sycophancy—the tendency of AI systems to affirm users rather than challenge their thinking—is one potential risk, alongside reduced diversity of ideas and overreliance on AI-generated recommendations. A randomized controlled trial at BT Group involving 2,400 participants found that an AI tool designed to push employees toward more ambitious, specific goals produced three-and-a-half times as many excellent goals as either default AI or no AI, without reducing participants’ enjoyment or psychological safety. To realize AI’s benefits, leaders should measure meaningful business outcomes, test interaction styles that reflect their organization’s values and strategic priorities, and continue investing in human capabilities such as constructive feedback, difficult conversations, and psychologically safe teamwork.’
Link: https://hbr.org/2026/11/what-sycophantic-ai-can-cost-your-organization
