Workplace AI adoption slow to grow, despite clear benefits

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Employment Hero’s Work That Works report has revealed that, while AI technology is already reshaping how many people work, overall adoption among small and medium-sized enterprises (SMEs) remains surprisingly low, with nearly a third (32%) of professionals reporting they never use AI at work.

The study into SME workplace productivity, with insights from 1,000 business leaders and 1,200 employees across the UK, reveals pronounced generational differences. Millennials (Gen Y) are leading the way, with 39% using AI tools daily or several times a week, followed by Gen Z (30%). However, the number of workers using AI regularly drops significantly among older members of the workforce, with just 17% of Gen X and 13% of Boomers using AI several times a week.

Despite limited adoption, early users of AI tools are already experiencing a profound shift in how they work. Among those who use AI in their jobs, two-thirds (66%) say it improves the quality of their output, while 62% report feeling more creative, and the same proportion say they feel less overwhelmed. Over half (57%) say they procrastinate less with AI support and 51% even report working fewer hours as a result of integrating these tools into their daily routines, suggesting AI isn't just changing tasks but transforming the overall employee experience.

Yet only 24% of respondents feel their company is making significant investments in AI, highlighting a clear disconnect between individual use and institutional support.

Younger workers are embracing AI tools, while older generations remain slow to adopt.placeholder image
Younger workers are embracing AI tools, while older generations remain slow to adopt.

Kevin Fitzgerald, Managing Director at Employment Hero, said:

“For technology to drive meaningful change, it needs to be in the hands of everyone. That means investing not just in access to tools, but in the training, support and confidence people need to actually use them.

“Closing the AI advantage gap is essential - not just for the success of individual companies, but for improving productivity across the UK economy. We need a trickle-down, human-centred approach to AI adoption. One that starts with leadership, but quickly and intentionally reaches every corner of the business.”

To read Employment Hero’s research in full, visit: https://employmenthero.com/uk/resources/business-productivity-report/

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