"As companies search for new ways to improve performance, some executives have begun paying attention to developments in emotion-sensing technologies and software fueled by artificial emotional intelligence. Although we are still in the early days, research shows that these technologies, which read such things as eye movements, facial expressions, and skin conductance, can help employees make better decisions, improve concentration, and alleviate stress. While important privacy issues need to be addressed, the opportunities are significant. Consider the technology developed by Koninklijke Philips Electronics NV and ABN AMRO Bank NV, both based in Amsterdam, to reduce trading risk in financial markets. Research has shown that traders in heightened emotional states will overpay for assets and downplay risk, a condition known as "auction fever" or "bidding frenzy." Although some types of stress can help people focus, research shows that too much stress is detrimental to productivity, creativity, and job satisfaction, not to mention psychological and physical health."

Support: Digital