BambooHR, a human resources, payroll and benefits platform, has released a new study that says although business leaders are seeing productivity from using artificial intelligence, they often find it lacking in tangible value and being overhyped.
The research also found AI productivity coming at a cost to the workforce.
The "State of the Workforce 2026" report found that while 81 percent of leaders report a productivity increase, nearly half (49 percent) say AI has not delivered material usefulness. The productivity gains are borrowing against the human workforce, with 85 percent of workers reporting daily stress, 29 percent not making ends meet despite a full-time salary, and 81 percent considering leaving their careers entirely. The report identifies this organizational strain as "dignity debt."
Based on surveys of more than 1,200 employees and business leaders across six major industries, the research found a widening disconnect between rising productivity expectations and the employee experience under them.
The report defines "dignity debt" as the compounding cost of treating people as a means to productivity rather than as the humans who make productivity possible.
"The opportunity in front of organizations isn't to slow innovation down. It's to make innovation more human, more transparent and more sustainable," said Brad Rencher, CEO at BambooHR. "The companies that succeed in the next era of work will be the ones that pair productivity gains with trust, clarity and investment in their people."
The report also found that organizations are increasingly pushing AI adoption into performance expectations before redesigning work around it. Fifty-seven percent of leaders say they would fire employees who refuse to adopt AI, while 39 percent of companies reduced headcount in the past year due to AI. Most leaders (74 percent) believe employees already have the skills needed for an AI-enabled workforce despite widespread employee reports of disruption and stress.
Despite rising uncertainty, workers were clear about what they want most from leadership: transparency. Nearly nine in 10 employees (89 percent) said they want greater transparency, honesty amidst uncertainty and visible leadership from executives.
The report found that while the underlying tension around AI, trust and workforce strain is widespread, its impact varies significantly by industry.
In the technology sector, 78 percent of leaders say the talent market is more competitive than it was two years ago, while 43 percent of tech workers say senior employees now spend more time reviewing AI-generated work than mentoring junior talent.
For healthcare workers, 65 percent report compassion fatigue, burnout or secondary traumatic stress as staffing shortages and patient-side AI use increase pressure on care teams. In the finance industry, 79 percent of leaders say undisclosed AI and data practices create reputational risk, yet only 57 percent proactively disclose AI involvement to clients. Nearly half (49 percent) of food and beverage businesses replace more than half their workforce every year, with leaders increasingly treating turnover as a cost of operations.
In construction, 80 percent of leaders worry younger generations are not entering the trades fast enough to sustain the industry long term, while 90 percent of education leaders think AI use is negatively affecting student learning and 60 percent predict AI will leave students underprepared for professional environments.
The full BambooHR report can be accessed through the company's website, www.bamboohr.com.
BambooHR conducted the research for the report using an online survey prepared by Method Research and distributed by RepData among 1,248 adults globally. The research included 926 full-time salaried employees in the U.S. and 322 business leaders, including business owners and C-suite executives, at small and mid-sized organizations. Data was collected from March 24 to April 9.
