July 10, 2025
AI Boosts Productivity by 40%, But Leaves Workers Burned Out and Disconnected
A new study by the Upwork Research Institute reveals that while AI is unlocking massive productivity gains in the workplace, with workers reporting a 40% increase in output, this efficiency comes at a cost: emotional fatigue, burnout, and a shift in workplace trust dynamics.
The survey of 2,500 workers explores the evolving role of AI in shaping not just how work gets done, but how people relate to each other and the machines themselves. AI is no longer just a tool operating in the background; it’s becoming a collaborator that influences team dynamics, individual well-being, and long-term organisational resilience.
“The productivity paradox we’re seeing may be a natural growing pain of traditional work systems, ones that reward output with AI, but overlook the human relationships behind that work. To lead effectively in the age of AI, companies need to redesign work in ways that support not just efficiency, but also well-being, trust, and long-term resilience,” said Dr. Kelly Monahan, managing director of the Upwork Research Institute.
AI as a Productivity Engine, and a Pressure Cooker
Across the board, workers are becoming more comfortable with AI tools. The report found that productivity improvements happened due to time spent experimenting with AI (30%), rapid product improvements (25%), and both self-guided (22%) and employer-supported (22%) upskilling efforts. Organisations are noticing the benefits; 77% of executives say they’ve seen productivity rise thanks to AI implementation.
But those gains come with trade-offs. The most productive AI users, those enjoying the biggest boost in performance, are also feeling the strain. A staggering 88% report experiencing burnout, and they are twice as likely to consider quitting their jobs. Perhaps more worrying, 62% of these high-performers say they don’t understand how their AI use connects to their company’s larger goals, revealing a major alignment gap.
From People to AI
The data suggests that as AI becomes more embedded in daily work, trust and collaboration are changing in unexpected ways. Over two-thirds of high-performing AI users say they trust AI more than their coworkers, and 64% say they have a better relationship with AI than with their human teammates. Many even say AI is more empathetic and polite than their colleagues, highlighting a growing emotional connection to technology that may redefine what “teamwork” means in the future.
Interestingly, human behaviours reinforce these dynamics. Nearly half of all workers say “please” and “thank you” with every prompt they send to AI tools, and 87% regularly communicate with AI as if they were speaking to a person.
Freelancers Are Building Healthier Relationships with AI
Amid this workplace transformation, one group is navigating the human-AI relationship with surprising ease: freelancers. Nearly 90% of independent professionals say AI positively impacts their work, and 42% say it’s helped them specialise in a niche. Unlike many full-time employees, freelancers are leveraging AI primarily as a learning and growth partner, with 90% using it to build new skills faster. They also report stronger well-being and a clearer connection between AI use and career outcomes.
These freelancers offer a glimpse into what sustainable AI collaboration can look like: flexible, adaptive, and grounded in personal agency and learning. Their success may provide a roadmap for organisations struggling to support their full-time teams in the face of rapid AI adoption.
