How leaders can channel AI gains into productivity uplifts

Artificial intelligence is weaving itself into the fabric of Australian workplaces, bringing the potential to transform the way we work. According to recent research by The Adecco Group on the Australian workplace,¹ 44% of Australian workers use AI at work – a slightly lower take up than global peers (48%). What’s more, of those Australian workers who use generative AI, 62% use it infrequently (admitting to only weekly or occasional use). The rewards from using AI can be considerable. The average Australian AI user saves 56 minutes on average a day and that figure could still rise – the global average is 59 minutes. And while some workers use the time saved on creative and strategic work, 39% of workers use the time to do the same workload or mundane tasks (figure 1) – a similar level to their global peers at 38%. So, although workers save time using AI, many appear to be independently choosing how to use this extra time. Much of the time saved appears to be misspent.

Figure 1. You said you have saved time using AI in your role. Which of the following areas have you been able to spend more time on? (multiple response allowed)

Barriers to productivity gains

Paradoxically, despite the release of powerful and readily accessible AI tools for the workplace, Australia is experiencing a tight labour market and a productivity crisis. Concerningly, Australian national account figures for the September 2024 quarter showed a fall in labour productivity of 0.5% over the quarter and 0.8% for the year.² So, although the data shows that AI can save workers time, it’s not delivering the productivity gains hoped for at a national level. These are some of the barriers we’re seeing:

• Insufficient workloads. When a job is completed more quickly, there isn’t direction on how to use the capacity created, nor may there be more work for the worker to do. For example, an in-house recruiter might use AI to assess and rank job applicants in half the time than when it was done manually. But if the organisation doesn't have a clear plan on how the time can be used (create talent pools, establish career mobility pathways), there’s a risk this productivity dividend gets wasted. Managers need to assess whether productivity gains are creating capacity or moderating workloads to more reasonable levels, helping prevent burnout.
• Independent work. Some workers are using AI to get the job done faster – then applying the time saved to personal use. This includes spending more time on a better work/life balance (27%), personal activities (17%) and searching for a new job (9%). Indeed, leaders have long been encouraged to manage their workers to outcomes rather than tracking their time and process. However, when AI speeds up the work, some leaders don’t have a sightline on where the time was saved, the magnitude of the saving nor how the saved time is used. Resetting clear productivity expectations needs to be addressed in line with efficiencies created by investment and adoption of AI tools.
• Limited access to appropriate AI tools. Organisations that work with sensitive or proprietary data are unable to expose this data to public tools such as ChatGPT. This requires organisations to draw on specialist IT, business and legal competencies to develop customised (and secure) AI – all in short supply. Therefore, there is often a not insignificant cost and investment in providing the access, and expectation of an ROI from utilisation.
• Lack of access to quality data. Organisations that want to adopt an AI tool to their business will need accurate data that’s organised in a way that can be used by the tool. Otherwise, the outputs may not be reliable, leading to manual rework to correct outputs and loss of any benefits.
• Unskilled leaders. Many Australian leaders lack AI governance skills. Our research reveals an alarming 54% of Australian workers are concerned that the use of AI in their workplaces could be unethical and/or discriminatory. This is consistent with other research by The Adecco Group that showed 57% of global executives lack confidence in their leadership team’s AI skills and knowledge.³ Only 42% of Australian workers are confident that their employer’s management/leadership team has sufficient AI skills and knowledge to understand the risks and opportunities.

Gaps also exist for foundational skills such as prompt writing techniques, being able to identify suitable use cases for AI, producing business cases to invest in AI and knowing the appropriate AI technology to use.

Turning time savings into productivity gains

Organisations across the world are grappling with the same question: how do we extract productivity gains and cost savings from responsible AI use? Here are six suggestions:

• Make business-ready AI tools available to your teams. What’s appropriate depends on your organisation and industry. For example, if you deal in confidential data, you’ll need customised tools that quarantine this information. Business automation with AI can improve operational efficiency if implemented thoughtfully.
• Show your teams how to better integrate AI tools into their daily work. Even shifting the 57% of generative AI users from occasional to daily use can deliver productivity gains. Leaders will need to work closely with their teams to redefine what best practice looks like and uplift operational discipline.
• Channel the time AI saves into producing more output. This may require increasing workloads, restructuring roles and tweaking KPIs so that the time saved isn’t squandered. The role of AI in business has the potential to streamline work and drive efficiency, provided that organisations capitalise on the gains.
• Change management. To meet business needs, it's essential to deploy AI solutions within a trust framework that mitigates potential harm, ensures safeguards and undergoes continuous testing.  Because AI is a rapidly evolving capability, workflows, structures and goals will continue to evolve. Consequently, effective change management will be an ongoing imperative.
• Leadership development. With so much at stake, there’s a compelling case for closing the leadership capability gap. AI and leadership development are becoming increasingly interwoven. Australian workers are eager to upskill their AI competency. Indeed, 58% of Australian workers now believe that being skilled in the use of AI will improve their career opportunities.

Many organisations are looking to invest in AI to improve productivity. Some are seeing real results, while others remain in the exploratory stage due to a lack of leadership skills and concerns about risk, reward and readiness. Now’s the time to upskill your leaders so that your organisation pulls ahead of the pack.

Get access to our 'Australian Workplace Adaptations to AI' infographic here.

¹ All data in this article is sourced from this report unless otherwise referenced

² Australian Government Productivity Commission, Quarterly productivity bulletin, December 2024

³ The Adecco Group, Leading through the great disruption, 2024

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