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The psychology of AI: Why trust, expectations, and perception matter more than you think

Photo of PeggySue Werthessen
PeggySue Werthessen

September 5, 2025

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AI projects don’t fail only because of poor data or unclear objectives. Increasingly, they falter due to something harder to quantify: human behavior. As AI adoption accelerates, we’re beginning to uncover a deeper, more complex challenge—one rooted in psychology, trust, and perception.

Fear and judgment are quiet project killers

A recent Pew research report reveals an unexpected behavioral trend:

people often avoid disclosing that they’ve used AI to assist with work. Why? Because they fear it will make them appear less competent.

This reluctance is not evenly distributed. Women, in particular, report more negative peer reactions when AI use becomes known. In some workplaces, relying on AI—no matter how effective the result—carries an implicit stigma.


This insight reframes how we think about adoption. Even the most technically sound solution may struggle if it runs into invisible resistance from the very users it’s designed to help. The psychology of AI is no longer a fringe topic—it’s becoming central to whether a deployment succeeds or fails.

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Precision, perception, and the tolerance for error

The tension between human expectations and AI behavior is especially visible in business intelligence.


In the world of BI, precision is non-negotiable.

Users expect exact answers every time. Any deviation is treated as a failure.

But AI—particularly generative AI—operates differently. It’s probabilistic by nature. It “rounds at the edges,” offering useful but occasionally imperfect outputs.


The key question becomes: when is that acceptable? In a retail setting, a minor AI misjudgment about shelf inventory may result in an apology and a coupon. In a hospital, that same level of imprecision could be catastrophic.


Understanding the tolerance for error in each use case is essential. Not every question needs—or should rely on—absolute accuracy. But every use case requires a clear-eyed assessment of the risks.

Who do we trust: The human or the agent?

Trust in AI is not built the same way as trust in people. We may rely on a human colleague because of shared history, performance, or intuition. But when AI enters the equation, new dynamics emerge.


Who is responsible for the AI’s actions—the algorithm itself, or the person who deployed it?

As AI agents become more autonomous, new roles will be needed to certify their outputs.

That includes not just technical validation, but also business alignment and ethical review.


Already, we can imagine a future where a single dataset must be certified from multiple perspectives:

  • A data engineer validating the pipeline
  • A security expert confirming compliance
  • A business analyst ensuring interpretive accuracy
  • An AI agent verifying consistency with learned behavior


Each of these stakeholders plays a role in establishing trust—and the absence of any one can undermine it.

Human-ready and AI-ready data aren’t so different

Much of this trust depends on how well the data has been prepared. While AI can assist in identifying anomalies and surfacing patterns, the foundational work of governance, enrichment, and clarity still falls to humans.


The truth is, AI-ready data is simply data that humans would have wanted all along: clean, clearly labeled, well-documented, and rich in context.

Metadata, lineage, naming conventions—these are no longer technical luxuries. They’re essential elements of human–machine collaboration.

The hardest part isn’t the technology

The technical challenges of AI are real—but solvable. What’s harder is navigating the human response. Trust, fear, peer perception, and accountability all shape how AI is adopted (or resisted) inside organizations.


As we move toward more autonomous and agentic AI systems, the question isn’t just “Can we build it?” It’s “Will people trust it—and each other—enough to use it?”


The answer depends not just on algorithms, but on open dialogue, transparency, and a better understanding of the psychology at play.


AI Trends
Analytics

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Photo of PeggySue Werthessen
PeggySue Werthessen

Having spent the first half of her career in the data intensive field of Financial Services, PeggySue Werthessen has spent more than the past decade supporting companies looking to drive a data driven culture within their own organizations.

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