BOSTON – Despite the growing presence of artificial intelligence in modern workplaces, a new report from GoTo suggests that the technology is falling short of expectations. In a global survey of 2,500 employees and IT leaders, 62% of respondents said AI is significantly overhyped, even as most admitted they aren’t using the tools to their full capacity.
The report, titled The Pulse of Work in 2025: Trends, Truths, and the Practicality of AI, was conducted in partnership with research firm Workplace Intelligence. It highlights a critical disconnect: while AI has the potential to improve productivity, employees are largely unfamiliar with how to apply it effectively. In fact, 86% confessed they are not using AI tools to their full potential, and 82% said they lack a clear understanding of how AI can support their daily tasks.
According to the research, employees spend an estimated 2.6 hours a day on tasks that could be automated by AI. That inefficiency, when scaled across the U.S. workforce, could represent more than $2.9 trillion in lost productivity each year.
“Employees are already using AI and are seeing clear productivity gains, yet despite these benefits, our latest research shows people still view AI as overhyped,” said Rich Veldran, CEO of GoTo. “While many recognize its value, they don’t yet see it as the revolutionary change they were promised. This gap likely exists because many workers admit they aren’t realizing AI’s full potential or don’t know how to apply it in practical ways.”
The study also revealed that while AI is being used, it’s often in ways employers might not expect. Over half of the employees surveyed admitted to using AI for high-stakes or sensitive tasks—29% for decisions requiring emotional intelligence, 25% for tasks impacting safety, and 16% for ethically complex personnel actions. Despite the risks, 77% said they don’t regret these choices.
Trust in AI remains a major barrier. A large majority of employees—86%—lack confidence in the accuracy and reliability of AI tools, and 76% said the outputs often require human correction. This skepticism may be contributing to the underuse of the technology.
Smaller businesses appear to be lagging even further behind. Among companies with fewer than 50 employees, only 59% of workers reported using AI tools, and nearly half said they don’t know how to use AI to save time or improve their work. In contrast, adoption rates were significantly higher at larger organizations.
Younger workers, often assumed to be more tech-savvy, are not exempt from these struggles. The report found that 74% of Gen Z employees said they are not very familiar with how to use AI in their day-to-day roles. “This highlights the importance of equipping all generations with the tools and education to use AI safely and effectively,” said Dan Schawbel, Managing Partner at Workplace Intelligence.
The study also outlines several strategies for improving AI adoption and effectiveness. Employees expressed strong interest in tools like AI virtual assistants, generative AI, and automated communication platforms, but only about four in ten said their organizations currently offer these technologies.
A lack of policies and training is another obstacle. Fewer than half of IT leaders reported that their company has an AI usage policy, and most respondents—both employees and IT professionals—said there is a need for clearer instructions and better training. Eighty-seven percent of employees felt that most workers are not being properly trained to use AI tools.
Many organizations are also failing to measure the impact of their AI investments. Nearly half of IT leaders acknowledged their companies aren’t tracking AI-related ROI effectively, and some admitted they’re investing in AI simply because it’s trendy, rather than as part of a deliberate strategy.
Still, small investments could yield significant returns. According to the report, 77% of IT leaders believe spending just $20 more per employee each month on AI tools could save an hour of work per day per employee.
The report concludes that for AI to truly transform the workplace, companies must close the gap between access and understanding. Bridging the divide between employee needs and IT expectations will be key to maximizing AI’s promise.
