Digital Transformation and the Changing Nature of Work: Emerging Challenges

Sunitha Purushottam Ashtikar and Manoharan Geetha

EthAIca: Journal of Ethics, AI and Critical Analysis, 2025, vol. 4, 411

Abstract: Digital technologies are maturing and working rapidly to change the work environment of today, disrupting age-old job structures, organizational practices, and the very nature of work. This study aims to address the ways in which digital transformation, propelled by technologies such as AI, automation, cloud computing, and big data, is redefining work across all industries. With digital tools in vogue, employees need new roles, higher-level digital competencies, and alternative work arrangements like remote and hybrid models. These transformations are creating new challenges that include technostress, job obsolescence, and digital inequality. Methods: A qualitative study informed by very recent empirical studies and theoretical literature. The approach is to synthesize insights from diverse case studies, industry-specific labor reports, and academic research into the impact of digital transformation on the workforce and organizational behavior. Results: Such findings reveal the very significant impacts of digital transformation on employee productivity, work-related satisfaction, and the culture of the organization. The importance of digital leadership, strategic change management, and continuous upgrading of employee skills significantly applies in their effective management of the transformation process. Conclusions: Going forward, organizations should focus on creating a resilient workforce that is digitally agile to remain competitively viable in a rapidly changing socio-economic landscape. In this context, the paper not only outlines opportunities and challenges associated with the changing nature of work but also presents strategic opportunities for policymakers, educators, and business leaders to capitalize on digital transformation.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:dbk:ethaic:v:4:y:2025:i::p:411:id:411

DOI: 10.56294/ai2025411

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