Upwork Inc. released a new study from The Upwork Research Institute revealing that AI is increasing the workloads of full-time employees, hindering productivity, and contributing to burnout.
Despite significant investments in AI by business leaders, the study shows that most organizations are failing to realize the technology’s full productivity potential. While 96% of C-suite leaders expect AI to boost productivity, 77% of employees using AI report that these tools have added to their workload. Nearly half of these employees say they do not know how to achieve the expected productivity gains.
Kelly Monahan, managing director of The Upwork Research Institute, commented, “Our research shows that introducing new technologies into outdated work models and systems is failing to unlock the full expected productivity value of AI. While it’s certainly possible for AI to simultaneously boost productivity and improve employee well-being, this outcome will require a fundamental shift in how we organize talent and work.”
The report highlights several key findings:
Workers are feeling increased productivity demands, with 1 in 3 full-time employees likely to quit in the next six months. 81% of global C-suite leaders acknowledge they have increased demands on their workers in the past year. As a result, 71% of full-time employees are burned out, and 65% struggle with their employer’s productivity demands. Alarmingly, 1 in 3 employees say they will likely quit their jobs in the next six months due to burnout or being overworked.
C-suite leaders expect AI to boost productivity, but employees experience the opposite. While 96% of leaders anticipate higher productivity levels from AI, 77% of employees report increased workloads due to AI. Employees spend more time reviewing AI-generated content (39%), learning to use AI tools (23%), and doing more work because of AI (21%).
Many workers are unclear on how to achieve the productivity gains expected by employers. Nearly half (47%) of employees using AI do not know how to achieve the productivity gains expected by their employers, and 40% feel their company is asking too much of them regarding AI.
Freelancers are more productive with AI compared to full-time employees. Nearly half (48%) of freelancers say they are skilled at using AI, and over a third (34%) use AI tools at least 1-2 days per week. More than half (56%) of freelancers do not struggle to keep pace with productivity demands, compared to just 35% of full-time employees.
Many C-suite leaders report increased organizational agility and employee well-being by bringing in freelance talent. Leaders leveraging freelancers have at least doubled outcomes such as organizational agility (45%), quality of work (40%), innovation (39%), scalability (39%), revenue (36%), and efficiency (34%). Additionally, 35% report improved well-being and engagement among full-time employees due to hiring freelancers. Nearly half (48%) of C-suite executives have hired freelancers to execute delayed AI projects over the past year.
Monahan added, “To reap the full productivity value of AI, leaders need to create an AI-enhanced work model. This includes leveraging alternative talent pools that are AI-ready, co-creating productivity measures with their workforces, and developing a deep understanding of a skills-based approach to hiring and talent development. Only then can leaders avoid losing critical workers and advance their innovation agenda.”
Image: Upwork
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