The latest report by GoTo sheds light on how artificial intelligence is being used in the workplace—and where the disconnects lie. Based on a survey of 2,500 employees and IT leaders worldwide, The Pulse of Work in 2025: Trends, Truths, and the Practicality of AI uncovers a growing sense of AI fatigue.
While there’s no shortage of excitement about AI’s potential, many workers feel let down. As many as 62% of those surveyed believe the promises made about AI’s impact on productivity have been overstated.
“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. While many recognise its value, they don’t yet see it as a revolutionary change. This gap likely exists because many workers admit they aren’t realising AI’s full potential or don’t know how to apply it practically,” said Rich Veldran, CEO of GoTo.
Despite that scepticism, the issue may not be with the technology itself, but rather with how it’s being used. An overwhelming 86% of employees admit they aren’t fully leveraging AI tools, and 82% say they simply don’t understand how to use AI in practical, everyday ways. This underutilisation costs businesses more than just missed opportunities. Workers estimate they spend an average of 13 hours per week on tasks AI could handle, amounting to an estimated $2.9 trillion in lost productivity annually in the U.S. alone.
Not As Safe As It Looks
Interestingly, the tasks employees are assigning to AI are not always the safest bets. More than half have used AI for high-stakes decisions, including emotionally nuanced work (29%), safety-critical tasks (25%), and even ethically sensitive personnel actions (16%). While many acknowledge these uses are risky, 77% say they don’t regret it. Compounding this issue, 86% of employees say they lack trust in the reliability of AI tools, and 76% report that outputs often need manual cleanup or corrections.
Smaller businesses are lagging behind when it comes to AI integration. Among companies with 50 or fewer employees, just 59% say they use AI tools, and nearly half (46%) admit they don’t know how to use them to improve their workflow. In addition, larger organisations are faring better, with AI usage reaching 80%, but that gap suggests a need for more accessible training and resources for small teams.
What About Gen Z?
Surprisingly, younger employees aren’t immune to the AI learning curve. According to the study, 74% of Gen Z workers say they aren’t familiar with how to use AI in a meaningful way at work. Dan Schawbel, Managing Partner at Workplace Intelligence, noted that this debunks the myth that digital natives naturally understand emerging technologies. “It’s not just older workers struggling with AI. All generations need education and training to make the most of these tools.”
To make AI work, companies must align tools with employee needs, offer better training, and adopt with purpose, not just to follow trends. While workers want AI assistants, automation, and communication tools, few have access, and only 45% of IT leaders have clear policies. Many firms aren’t measuring ROI, yet small investments could drive big productivity gains. The real issue isn’t the tech—it’s poor implementation and a disconnect between IT and employees.