Preserving Identity During Periods of Technological Change
By Charlotte Axon.
Everyday it seems that conversations are continuing about how technological transformation will shape the future of work.
Naturally, organisations need to engage in change and transformation in order to ensure long-term survival, remain competitive, and drive growth in a constantly evolving environment. However, what is often overlooked during both planned and unexpected technological transformation is how humans will respond and adapt psychologically.
As we look towards a working world where humans are increasingly interacting with technology, what impact will this have on our own sense of identity? How might this impact “who we are” at work? And, perhaps most importantly, how can we preserve human identity during destabilising times?
The Role of Identity in Work
In considering these questions, let us first explore the role of identity at work.
“Organisational Identity” refers to the distinctive, central, and enduring characteristics of an organisation (Albert and Whetten, 1985). Studies have shown that Organisational Identity provides a sense of continuity and purpose during times of change (Ashforth and Mael, 1996). However, when organisational change is misaligned with identity, it can lead to resistance, confusion, and loss of cohesion (Hatch and Schultz, 2002).
What the Research Tells Us
Most may recognise from experience that whilst digital transformation can positively affect productivity, innovation, and even create new career pathways, it can also lead to increased uncertainty, job loss, and organisational instability.
In a 2026 paper from the Journal of Organizational Change Management, researchers specifically explored the relationship between digital transformation and organisational identity. The researchers uncovered something interesting that happens when someone’s job changes as a result of AI. Not only do employees lose certain tasks, they also lose the "expert" identity they have built over years.
The author argues that if organisations adopt new technology without supporting employees to psychologically "realign" their identity, workers are at risk of feeling excluded, lost, and "phased out".
Without this active “identity realignment”, workers are more likely to view new technology through their old lens, which can lead to confusion and resistance. Without this identity shift, employees risk entering a state of “identity ambiguity” where their work no longer feels like a reflection of who they are.
The research makes it clear that identity plays a crucial role in successful technological change. What does this mean in practice?
Experience of Identity as a Business Psychologist
I’ve always been fascinated by how our identity shows up at work. During my five years specialising in Equity, Diversity, Inclusion and Belonging, I quickly learned how personal, varied and complex our identities are. I also discovered how unsettling it can be to realise that your own identity does not align with your organisation’s identity in the way you perhaps hoped it would.
Identity also shows up in every coaching relationship I have. Even if we haven’t formally named it, identity usually sits patiently “in waiting” before finding its way to the centre stage.
In exploring identity with one coachee, we talked about which parts of their identity were “on display” at work, which parts were hidden, and which parts they wanted to intentionally integrate into their “work self”. This fascinating exploration of choice and authenticity has created an opportunity for my coachee to experiment with a leadership identity that feels meaningful to them, relevant to the organisation, and inspiring to others. Identity has not been a separate conversation, but a central part of their professional development as a leader.
Linking Identity and Digital Transformation
When I reflect on how identity is showing up alongside technological transformation, I’m reminded of a recent conversation I had with a software engineer. Having spent their whole career developing and refining their craft, AI has rapidly changed where the industry is heading.
“Standards and expectations are changing - people just want output rather than quality output”, they told me, “I've positioned myself my whole career as someone who wants to deliver quality outputs. People will always try to compromise on quality over speed but this has become much harder with the introduction of AI”.
Not only has the rapid integration of AI changed what software engineering roles look like, it has required a shift in expectations and identity. The impact?
“It feels unsettling because I was an expert in the old tools but now I need to learn all these new tools, and they are evolving all the time. Coding the old way feels like a lost art form”.
This is the reality of the pace at which the industry is moving, which is bringing plenty of opportunity as well as uncertainty. Where does this leave organisations?
Implications for Practice
To maintain a sense of belonging during technological change, organisations must not lose sight of the psychological impact on human identity. This means that redefining roles needs to focus on tools alongside the human values and skills that people bring to their work.
As with any organisational change, we can expect challenges and tension. But the more proactively we can address these challenges, the better the chances are of a positive identity realignment, and therefore successful transformation.
For the web developer, this process might look something like:
- The Threat: Web developers feel their "identity" as coders is being erased, as they do less coding and more overseeing an AI producing code.
- The Strategy: The company manages AI integration alongside a cultural shift, redefining the identity from "Software Engineer" to "Strategic AI Engineer".
- The Outcome: The identity is "realigned" with the new reality, preserving the employee's sense of value and belonging.
Considerations
- For organisations: How can we create space for people to explore and realign their work identity during periods of technological change?
- For managers: How can we ensure our team still feels like a 'we' when a system is now doing part of our work?
- For Business Psychologists: How can we support organisations to consider identity during periods of technological change?
Conclusion
I am hopeful that we can create space for human-ness in a world dominated by technology and automation. But we will need to be intentional about it.
Through understanding the power of identity, we create an opportunity to re-align people with technology in order to facilitate successful organisational transformation.
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About the Author
Charlotte is a Business Psychologist and Coach at Tailored Thinking, an HR, wellbeing and positive performance consultancy. Charlotte is passionate about neurodiversity, inclusion, identity and belonging, and specialises in enabling individuals and teams to personalise their work. Before moving to consultancy, Charlotte worked in various in-house HR, inclusion, and organisation development roles. Charlotte has a Master’s Degree in Occupational Psychology from the University of Sheffield, where she is featured on their alumni "Wall of Fame". Charlotte has published research and presented at conferences globally. She was shortlisted for the ABP's "Best Business Psychology Practitioner of The Year" award in 2026.
References
Albert, S. and Whetten, D.A. (1985), “Organizational identity”, Research in Organizational Behavior: An Annual Series of Analytical Essays and Critical Reviews, Vol. 7 No. 1985, pp. 263-295.
Ashforth, B.E. and Mael, F. (1996), “Organizational identity and strategy as a context for the individual”, Advances in Strategic Management, Vol. 13, pp. 19-64.
Hatch, M.J. and Schultz, M. (2002), “The dynamics of organizational identity”, Comunicação e Sociedade, Vol. 8, pp. 115-139, doi: https://doi.org/10.17231/comsoc.8(2005).1186.
Hein-Pensel, F. (2026). Organizational identity meets digital transformation: understanding the interplay between transformation and identity in Industry 5.0. Journal of Organizational Change Management, 39(8), 1–21. https://www.emerald.com/jocm/article/39/8/1/1331871/Organizational-identity-meets-digital