Outdated work models limit AI’s productivity potential: Upwork study

A new study by Upwork Inc. highlights a paradox in the modern workplace: while AI is designed to enhance efficiency, it is instead increasing the workloads of full-time employees, diminishing productivity, and contributing to a rising tide of employee burnout.

According to the findings of The Upwork Research Institute study, 96% of C-suite leaders expect AI to boost worker productivity, but 77% of employees report AI has increased their workload. Around 47% of employees using AI report they do not know how to achieve the expected productivity gains.

The report finds that workers are feeling the strain from rising productivity demands, with 1 in 3 full-time employees saying they will likely quit their jobs in the next six months, 81% of global C-suite leaders acknowledge they have increased demands on their workers in the past year.

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Consequently, 71% of full-time employees are burned out, and 65% report struggling with their employer’s demands on their productivity. Alarmingly, 1 in 3 employees say they will likely quit their jobs in the next six months due to burnout or being overworked.

The study reveals that C-suite leaders have high hopes that AI will help boost productivity, but employees are experiencing the opposite, with AI making their jobs harder: 96% of C-suite leaders expect the use of AI tools to increase their company’s overall productivity levels. 

Increased time to review AI-generated work

Already, 85% of companies are using AI, including 39% mandating the use of AI tools and 46% encouraging their use. However, 77% of employees report that these tools have added to their workload. Employees report spending more time reviewing or moderating AI-generated content (39%), investing more time learning how to use these tools (23%), and being asked to do more work as a direct result of AI (21%).

For many workers, the path to achieving the productivity gains that employers expect is not clear: Nearly half (47%) of employees using AI say they have no idea how to achieve the productivity gains their employers expect, and 40% feel their company is asking too much of them when it comes to AI.

Gig employees outpacing full-timers in unlocking productivity with AI 

The report also reveals that those working as freelancers have outpaced full-time employees in unlocking productivity with AI. Nearly half (48%) of freelancers say they’re “somewhat” or “highly” skilled at using AI, and over a third (34%) use AI tools at least 1-2 days per week. Additionally, more than half (56%) of freelancers say they do not experience struggles keeping pace with the productivity demands of clients, as compared to just 35% of their full-time employee counterparts.

Many C-suite leaders have doubled organisational agility as well as well-being and engagement among full-time employees as a result of bringing in freelance talent: C-suite leaders leveraging freelancers say they have at least doubled the following outcomes for their business: organisational agility (45%), quality of work being produced (40%), innovation (39%), scalability (39%), revenue and bottom line (36%), and efficiency (34%). More than a third (35%) report also doubling the level of well-being and engagement among their full-time employees as a result of bringing in freelance talent. Nearly half (48%) of C-suite executives even report hiring freelancers to execute delayed AI projects over the past year.

“To reap the full productivity value of AI, leaders need to create an AI-enhanced work model,” said Kelly Monahan, managing director of The Upwork Research Institute.  

“This includes leveraging alternative talent pools that are AI-ready, co-creating productivity measures with their workforces, and developing a deep understanding of and proficiency in implementing a skills-based approach to hiring and talent development. Only then will leaders be able to avoid the risk of losing critical workers and advance their innovation agenda.”

This unexpected consequence underscores the need for a more strategic implementation of AI tools to harness their potential benefits.

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