Artificial Intelligence is the exciting, scary, and interesting new addition that every company is trying to figure out how to incorporate. At this point, no matter where you go in the corporate world, you will probably find some new AI integration. While businesses and many around the world are excited by the potential of AI, not everyone is on board. According to ADP Research, 85% of workers believe AI will impact their job within the next two to three years. When it comes to whether that impact will be positive or negative, workers are split.
That brings us to Sheer Luxe, a lifestyle brand based in the U.K. They self-describe themselves as “Think of us as a cooler, in-the-know friend, updating readers with news, views, edits and opinions on all things relevant and desirable for the modern woman, from fashion and beauty to careers and travel.” The company made the move to embrace AI and introduced an “AI-enhanced team member” named Reem.
Reem was announced as a fashion and lifestyle editor. The company made a big social media push around her start. They added her to their Polaroid wall of employees and showed photos of her first day working around the office. But this person and her first day never existed, as Reem was a fully AI employee.
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While Sheer Luxe made their post with an excited tone, they instead saw their audience turn against them. Supporters of the brand were upset and confused. Popular thoughts among the top comments included anger at creating a fake woman of color over hiring a real one, with the current job market it felt like a slap in the face to see AI get a job over a real fashion writer, and that the brand had created a fake person who did not represent their fans and had an unattainable appearance. The anger would spread, with Sheer Luxe eventually having to shut down comments across their pages and release follow-up statements to repair the damage from the launch.
Sheer Luxe is not the first or last brand to feel backlash like this as a result of AI use. Popular language learning app Duolingo suffered similar issues after announcing an AI focus despite cultivating a very human comedic online presence. Some employees at these companies likely anticipated the AI backlash as well. They’re very involved in their audience and trends and would have seen similar brands face this backlash before them.
It highlights the need and importance of psychological safety and intellectual honesty in the workplace.
· Psychological safety is a belief that one can speak up, share ideas, and make mistakes without fear of negative consequences.
· Intellectual honesty is a commitment to truthfulness and integrity in the pursuit and presentation of knowledge.
While companies have created global and multicultural teams, they haven’t yet taken the next step to make those teams effective. It is up to leaders to manage diversity as a deterrent or an advantage. A common pitfall is employees falling into groupthink.
It is a bit of human nature to try to fit in. Experiments like the Asch Conformity Test reveal this tendency not to go against the group and speak out.

In the tests, participants were shown the line in the first image on the left and then asked to select the matching line from the image on the right in a group setting. The catch was that in the group, most of the people were actors who were intentionally giving incorrect answers. The pressure of the group’s answer, even if incorrect, would sway individuals. 76% of participants went along with the incorrect answer.
Companies need people who are going to break out of the group when they think something is wrong. That involves creating teams that are not only global or diverse, but also provide intellectual honesty and psychological safety. The key to unlocking these two feelings in your team is cultural intelligence (CQ).
CQ is a developable skill that enables you to work more effectively with and relate to people who have different cultural backgrounds. The four components (CQ Drive, CQ Knowledge, CQ Strategy, and CQ Action) enhance your ability to create intellectually honest environments where varied perspectives are valued and people express their thoughts and challenge assumptions openly. This inclusivity fosters psychological safety, enabling team members to share their ideas and concerns without fear of repercussions.