G-P (Globalization Partners), recognized as the undisputed leader in global employment by industry analysts, today released its third annual AI at Work Report, revealing that while AI remains the most transformative force of our time, the market has moved from experimental wonder to a high-stakes reckoning. Despite 100% of surveyed executives reporting AI usage, nearly 70% of executives are prepared to scale back AI budgets if goals aren’t met this year.
“To get AI right, you have to move past the hype and focus on where it actually moves the needle,” said Nat Natarajan, Chief Operating Officer, G-P. “A smart strategy isn’t about doing everything at once, it’s about identifying high-impact use cases and preparing your team before you start. That foundation is what separates companies stuck in a loop of endless pilots from those that actually achieve real, transformative results.”
Last year, executives leaned into AI with excitement with an emphasis on rapid adoption and experimentation. Now, the share of global executives who describe their organizations as aggressively using AI to innovate has fallen from 60% to 42%. With 73% of executives reporting at least some of their AI investments fell short of expectations over the past 12 months, this year’s report outlines the shifting realities as the market now demands tangible, ethical and accurate ROI:
- The “bubble” split: Globally, executives are divided on whether the bubble will burst this year, but 69% of U.S. HR executives view AI as a long-term structural shift, highlighting that their function sees this as an integral part of the future of work.
- Rethinking the human value: 82% of executives admit AI has lowered the value they place on human employees, a trend G-P warns could jeopardize the very human-led innovation required to make AI successful.
- Productivity paranoia: 88% of executives are concerned employees are using AI to “perform productivity” – appearing busy and meeting AI usage mandates without generating real business value. Nearly half (47%) are very or extremely concerned this is already happening.
- Micromanaging the machines: 69% of executives report the time employees spend monitoring, reviewing or updating work performed by AI has increased over the past year. This suggests a hidden tax on AI adoption potentially offsetting the very efficiency gains the technology promised.
- The borderless talent solution: 82% of global executives would hire in a country where they don’t have existing employees to secure top AI talent. Companies are now prioritizing specialized AI literacy over local presence, turning the search for expertise into a global race.
“AI is increasingly being measured by trust, accountability and business impact. For global employers, that means focusing AI on navigating complexity, reducing risk, enabling better decisions, and expanding access to talent across borders. The future belongs to companies that pair AI with the right expertise, governance and operational discipline to turn opportunity into real business outcomes,” said Pete A. Tiliakos, Principal Analyst, Strategic Advisor, GxT Advisors.
The 2026 AI at Work report is based on insights from 2,850 leaders across six global markets. Download the full report here.
Explore Hrtech Articles for the latest Tech Trends in Human Resources Technology
