economics Paradigm Challenge

When CEOs talk optimistically about how AI will transform their company, their employees become more likely to quit.

April 1, 2026

Original Paper

Sweet Talk, Bitter Risks: How Optimistic Corporate AI Disclosure Tone Erodes Employee Long-Term Commitment

silu deng, Qi He, Xinye Liang

SSRN · 6507431

The Takeaway

Management often uses enthusiastic 'AI disclosure tone' to signal innovation to investors, but it triggers job insecurity among staff. Instead of being inspired, employees interpret the optimistic rhetoric as a sign of their own future replacement, leading to decreased commitment and higher turnover.

From the abstract

This study investigates the consequences of corporate artificial intelligence (AI) disclosure tone on employees’ behavioral responses, particularly their risk perception and subsequent participation in long-term incentive plans. Using text analysis of the Management Discussion and Analysis (MD&A) sections, we construct a novel measure of AI disclosure tone (AI tone) and examine its relationship with participation in Employee Stock Ownership Plans (ESOPs), which serve as a primary proxy for emplo