The Rise of AI in Whistleblowing: Employee Trust and Technological Adoption

Most employees want to work somewhere where they feel safe and respected. For organizations striving to provide their workers with the resources they need to feel secure, one of the primary components is an effective whistleblower system. These systems play a crucial role in maintaining compliance in the workplace, as well as in the overall well-being and culture of employees.

To further enhance whistleblowing, artificial intelligence (AI) is paving the way for reporting systems, assisting HR departments and workplace leaders in enhancing workplace compliance.

AI is reshaping whistleblowing, shifting its focus to employee trust and how its adoption can benefit an organization. To understand the transformative potential of AI, first, it’s essential to recognize the limitations of traditional whistleblowing programs.

Why Do Traditional Reporting Methods Fall Short?

Traditionally, whistleblower programs consisted of reporting to an in-person HR department, with some email or phone hotline options. Although providing employees with the opportunity to report will always benefit the workplace’s organizational culture, it may also lead to privacy concerns. Employees historically preferred to report anonymously, according to the American Journal of Industrial and Business Management.

This could be due to a variety of reasons; research from the National Library of Medicine states that whistleblowers may be hesitant to report due to a fear of retaliation, coupled with their management lacking safeguards to protect them.

That’s, in part, how AI-powered whistleblowing systems come into play, as they place a stronger significance on anonymous reporting. This enables organizations to protect their workers better and enhance employees’ psychological safety, among other benefits:

• Promoting the workplace speak-up culture, which includes fostering trust and transparency.

• Operational savings, due to improved productivity and growth. Poor mental health increases the risk of burnout or lower work performance.

• Businesses can maintain legal compliance because AI acts as a mechanism to enhance employee trust and transparency, making it a crucial component in helping businesses meet regulatory compliance requirements.

Literature Review: Whistleblowing and a Preference for Technology

By reviewing a 2025 global study from Case IQ on employee perceptions and experiences in the U.S., along with their thoughts on integrating AI into whistleblowing systems, we aim to gain a deeper understanding of their feelings and concerns to create a safer workplace environment.

Trust and Employee Reporting

Research highlights how common it is for employees to witness misconduct; however, there is a gap between the number of employees who observe it and the number who report it. It also inquires about the comfort level of employees in reporting misconduct at their current workplace:

• 81% of employees witnessed misconduct in the workplace, including unethical or illegal behavior

• et, only 72.7% of those reported the misconduct.

• Only 50.9% of employees stated they were comfortable in making reports.

This reporting gap appears to primarily stem from a fear of retaliation or, in some cases, from employees being unaware of the reporting process.

• 33.2% of employees have witnessed retaliation against whistleblowers.

• 29.6% of employees reported that their workplace does not have a whistleblower program, while 12.4% unsure whether one exists.

Many employees fear retaliation, a common problem exacerbated by the lack of reports. They state they’re afraid of:

• Risking their position or losing their jobs

• Hindering relationships with coworkers

• The potential for retribution

Workplace leaders must prioritize safe whistleblowing, but not just to meet compliance requirements. If organizations fail to protect their employees, they could also lose employee trust.

What happens to workplaces when employees don’t trust their higher-ups? It can lead to reduced productivity, increased turnover, and a poor workplace culture. This demonstrates the importance of a strong leadership focus on promoting ethical behaviour and accountability.

Technology in Whistleblowing

The Case IQ's report also note respondents’ preferred whistleblowing tools. The rankings are as follows:

1. Phone hotlines

2. AI chatbots

3. AI voicebots

4. Online web form

5. Mobile app

6. Email

7. HR department

It’s sobering to see that reporting to an HR department ranked as the lowest preferred reporting method among employees. In contrast, AI-driven reporting tools ranked higher than many of the other options. This suggests that employees prioritize privacy above all else when reporting misconduct, meaning a strong preference for a digital approach to reporting over an in-person one.

How AI Addresses the Reporting Gap

AI integration might be met with resistance, but the aforementioned research suggests that more than 69% of employees report no concerns with AI being used in their whistleblower systems. Additional information builds upon the concept of AI–powered reporting tools, highlighting various benefits, including:

• Anonymity: AI-powered systems can summarize and triage reports without learning the whistleblower’s identity.

• Ease of Use: Digital interfaces, such as AI chatbots, can allow employees to explain their concerns to the system, replicating a real-life conversation rather than requiring them to fill out a form.

• 24/7 Accessibility: Access to a whistleblower reporting tool at any time.

Over 77% of employees believe that these AI features could encourage more employees to report misconduct, as they will help make the process more confidential and safer.

Opportunities and Risks of AI in Whistleblowing

Although many workers recognize the value of AI, a significant number raise concerns regarding the technology, including:

• Misuse of data and the potential for reports to be mistakenly attributed to employees.

• Misinterpretation and a lack of human oversight for higher-risk reports.

• Skepticism on whether the AI can understand reports and remain fair and unbiased.

Additionally, many employees, including those in favor of its implementation, believe companies should disclose when they use it. The report mentioned above notes that 82.7% of employees are in favour of organizations disclosing if they integrate AI into whistleblower programs.

Organizations will need to place a strong emphasis on building workplace trust, which will, in turn, encourage employees to embrace the benefits of AI-powered whistleblowing systems.

A Blueprint for Building Trust in AI Systems

How can workplaces improve employee trust towards AI-powered whistleblowing systems? Workplaces need to shift their focus to enhancing confidence in the technology. U.S. employees are open to this, and executives will need to address their concerns to improve their speak-up culture. Actionable strategies include:

• Addressing potential misinterpretation of AI use by emphasizing AI-human collaboration, with the technology acting as an enhancer and not a replacement for human experts.

• Highlight how data is protected and the protection mechanisms in place (e.g. encryption or blockchain technology).

• Coach department leaders on how AI systems work so they can answer employee questions.

• Explain the steps for reviewing reports that humans and/or AI conduct.

• Add an “Explainable AI” statement to policies to help employees understand how it contributes to fair and unbiased decisions.

Closing Thoughts

The integration of AI into whistleblowing systems represents a significant advancement in promoting ethical workplaces. Research suggests that employees are willing to adopt these tools, provided they enhance the core pillar of whistleblowing: anonymity. However, technology alone is not the final solution; trust remains the critical foundation for workplaces.

For AI to transform compliance from a reactive to a proactive approach, organizations must pair technological innovation with human oversight. By doing so, leaders can leverage AI not just to mitigate risk, but to build a more resilient, transparent, and psychologically safe organizational culture where employees feel empowered to speak up.

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Shannon Walker is the founder of WhistleBlower Security Inc. (WBS) and executive VP of Thought Leadership and Strategy at Case IQ. WBS provides ethics, compliance, and loss prevention hotlines, along with IntegrityCounts, a proprietary case management platform for organizations globally. Shannon frequently speaks around the world on whistleblowing, ethics, corporate culture and diversity. A former elected City Official, Shannon has also sat on a number of non-profit boards and is currently Chair of the Ambleside Dundarave Business Improvement Association. She has a B. A from Simon Fraser University in British Columbia and an M.A. from Pepperdine University in California. Today, Shannon lives with her family in Vancouver, Canada.