Why AI Employee Monitoring Alone Will Not Create Great Companies

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As we move toward the latest HR trends for 2025, one particular issue remains contentious: AI surveillance in offices. Earlier this year, there were debates around what could be considered the “best” employee tracking software. Some discussions even went so far as worrying about the amount of monitoring people received, such as when individuals would take a bathroom break or even call their veterinarian. This raises serious concerns, especially with the rise of leading AI monitoring tools, about where the line is drawn between helpful oversight and intrusive surveillance. Does this over-detailed checking truly equate to having a motivated and productive workforce? The answer, more often than not, is a resounding no.

The Human Element: The Missing Piece in Workplace Surveillance.

While technology offers a fascinating window of possibilities, it cannot replace the groundwork of good management practices. Great leaders build people and strive to unite them toward achieving a particular goal, and trust, the foundation of any team’s success, is built by strong leaders and managers. They do this by listening to each individual—setting and managing expectations, providing support, and giving feedback. It’s about understanding the details of each person and their place and role in the team. And while some may explore options like ethical workforce tracking using tools like Controlio software, the core principles of good management remain paramount.

Let’s look at a content lead. Their role goes beyond just typing throughout the day. Thinking, research, and brainstorming are all essential components of the creative flow. They could be interviewing experts, sketching ideas, or even going for a stroll while grappling with writer’s block. These activities may be considered “ideal time” by AI monitoring tools, but in reality, they are generating a lot of value.

The Trouble with “Going Through the Motions”

The core problem of excessive AI monitoring in the office is when people don’t engage and there is a lack of creativity. As Richardson wisely puts it, “Do you actually want to create a culture where everyone goes through the motions of being active, however, actually doing nothing?” In a context, when employees are observed by a system that does not understand the context of their work, it is likely that they will do what is most convenient and what appears to meet the metrics, even if it lessens the value. The best and most innovative people, along with those who consider autonomy as a virtue, tend to walk away when there is no trust, and along with them goes their skill and potential.

The Trap of Statistical Obsession

In business, there’s always the risk of losing sight of qualitative nuances and focusing on metrics that can easily be quantified. More often than not, these metrics hold no value or are just clutter. Think about it this way: while a thousand cold calls may net a handful of clients, talking to a potential client at a social event may score a major deal. It goes without saying that AI-driven business monitoring tools will document the cold calls but will completely miss the meeting that actually leads to true business value.

Goodhart’s Law and the Perils of Performance Metrics

Goodhart’s Law sums it perfectly: as soon as something becomes a target, it loses all useful information. Such a principle draws attention to the problem at hand too. It means that when specific metrics become the sole focus, they stretch too far and lose any significance. We completely forgot what productivity or genuine innovation looks like and are chasing pointless numbers.

Building a Great Company: It Starts with Trust

A truly great company is built from the soil of cultivating trust as its primary core value. One of the first places to start is recognizing the shortcomings of AI surveillance in workplaces. Using technology as a tool is permissible, but it must never overshadow human connection, trust, and understanding. Instead of concentrating on constant checking, focus on developing a value-added culture of open communication and mutual respect for every employee’s contribution to the organization. While this approach is harder to quantify, it will, however, foster an engaged, motivated, and successful workforce. At the end of the day, it’s about creating an environment where people are appreciated, enabled, and inspired to do their best work, not just monitored for activity.

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