Does AI increase productivity at work? New study suggests otherwise

In a landscape increasingly defined by technological advancements, artificial intelligence (AI) has been hailed as a transformative force poised to revolutionise productivity in the workplace. 

However, a recent study commissioned by the freelance platform Upwork presents a starkly different narrative, casting doubt on the actual benefits of AI and highlighting significant challenges in its current implementation.

The study, conducted by Walr, surveyed 2,500 workers across the US, Canada, the UK, and Australia. The participants included a diverse range of professionals: 1,250 C-suite executives, 625 full-time salaried employees, and 625 freelancers, spanning ages 18 to 78. 

The results reveal a disconcerting disconnect between the anticipated productivity gains from AI and the actual experiences of workers on the ground.

AI expectations vs. reality

One of the most striking findings from the survey is the disconnect between management expectations and employee experiences with AI. While 96% of executives are optimistic about AI’s potential to boost productivity, only 26% have implemented training programs to ensure their teams can effectively utilize these tools. Furthermore, just 13% of companies report having a “well-implemented AI strategy,” suggesting a lack of comprehensive planning and execution.

The expectation that AI will drive significant productivity improvements is widespread among leadership. Yet, the survey reveals that the anticipated benefits have not materialised for many workers. Nearly half (47%) of those using AI tools admit to not knowing how to achieve the productivity gains expected. In fact, 77% of employees report that AI tools have had the opposite effect, diminishing productivity and adding to their workload.

This discrepancy is further compounded by the fact that 65% of employees initially expected AI to make them more productive. However, the reality has not matched these expectations. Approximately 40% of workers feel overwhelmed by the demands placed upon them in conjunction with AI, reflecting a significant gap between perceived and actual utility.

The study highlights several critical issues associated with AI adoption in the workplace. One of the most concerning findings is that 71% of workers are experiencing burnout, with nearly two-thirds (65%) struggling under increasing employer demands. The pressure to utilize AI to increase productivity has led to additional strains on employees, with 35% being asked to expand their skill sets, 30% to take on a wide range of responsibilities, and 20% to work more hours.

The survey also reveals that a significant portion of the workforce is considering leaving their jobs due to burnout or being overworked. One in three employees say they are likely to quit their jobs in the next six months, underscoring the impact of these heightened expectations on job satisfaction and retention.

Another critical issue highlighted by the survey is the gap in AI readiness between executives and employees. While 37% of C-suite leaders rate their workforce as skilled and ready to use AI tools, only 17% of employees agree with this assessment. This disparity points to a broader issue of misalignment between leadership’s confidence in AI and the actual preparedness of their teams.

The study also shows that most executives (96%) view AI as a driver of productivity but lack the necessary support structures to realize this vision. The absence of adequate training and a cohesive AI strategy contributes to the failure to unlock the full potential of AI.

Kelly Monahan, Managing Director of The Upwork Research Institute, reflects on the findings: “Our research shows that introducing new technologies into outdated work models and systems is failing to unlock the full expected productivity value of AI.” Monahan argues that while AI has the potential to enhance productivity and improve employee well-being, achieving these outcomes requires a fundamental shift in how talent and work are organized.

To bridge the gap between AI’s potential and its actual impact, organizations need to address several key areas:

• Comprehensive training: Investing in training programs to equip employees with the skills needed to effectively use AI tools is crucial. Without proper training, the benefits of AI are unlikely to be realized.
• Strategic implementation: Developing and executing a well-defined AI strategy is essential. This involves aligning AI deployment with organizational goals and ensuring that the technology integrates seamlessly into existing workflows.
• Managing expectations: Both management and employees need to have realistic expectations about what AI can achieve. Clear communication about the goals and limitations of AI can help manage expectations and reduce the pressure on workers.
• Addressing burnout: Organizations must recognize and address the factors contributing to employee burnout. This includes balancing the demands of AI with support systems that promote well-being and job satisfaction.
• Reevaluating work models: Adapting work models to accommodate the integration of AI and other technologies is necessary for maximizing their potential benefits. This may involve rethinking workflows, job roles, and organizational structures.