More than 80% of companies report no productivity gains from AI so far, despite billions of dollars of investment, according to research – 6,000 executives also revealed that a third of leaders use AI, but only for 90 minutes a week

AI is the buzzword of this era, and like the craze of the early dot-com era, billions of dollars worth of investment are being poured into tools for workers aimed at increasing productivity and lowering employment costs. Unfortunately, a new survey of more than 6,000 executives from companies in Europe and the United States reveals that the majority believe AI has had little impact on their business operations so far.

Go deeper with TH Premium: AI and data centers

Microsoft Data Center in Mount Pleasant, Wisconsin — (Image credit: Microsoft)

That’s despite the fact that the majority of those questioned believe AI will increase productivity by 1.4%, reduce headcount by 0.7% and increase output by 0.8% over the next three years. Among executives themselves, one-third of those surveyed reported using AI in the workplace, but only spent an average of 1.5 hours a week using it. A quarter of those surveyed were not using AI at all, at least not yet.

The contrast between the introduction of AI and its impact on business is an interesting look back at the challenges of the past few decades, when the introduction of microcomputers fundamentally changed the way businesses operate. The so-called Solow productivity paradox, named after the economist who discovered this trend, found that in the 1970s and 1980s, computer-generated information overload increased the number of managers and actually made workers less productive. Productivity growth remained stable at 2.9% from 1948 to 1973, then fell to 1.1% and did not improve again until the late 1990s and early 2000s. Similarly, a recent AI study found that the use of AI can actually increase employee burnout.

Either way, AI continues to prove to be a radically disruptive technology with strong executive acceptance, and by 2025, AI companies will capture 61% of global venture capital investment, totaling $258.7 billion. Meanwhile, companies like Microsoft remain committed to AI, with Microsoft’s head of AI believing the technology could replace all white-collar jobs within 18 months.

The contradictions and optimism of executives prove that AI is firmly here in the workplace, but only time will tell whether it will have the positive impact they and the economy as a whole hope for.

Google's preferred source