Technology investments in AI tools are leading to greater organizational productivity and efficiency, but the time savings are not being applied to work that is essential to advancing the team's overall performance, according to a new research report on AI adoption conducted by FranklinCovey. Only 35% of employees reinvest time saved through use of AI tools in innovation, strategic thinking, or deeper client engagement, FranklinCovey Institute researchers found.
Only 35% of employees reinvest AI-saved time in innovation or strategic thinking.
Just 9% of employees say manager explains how AI will help business grow.
92% of workers spend hours weekly waiting for clarity to resolve misalignment.
74% of employees agree AI improves work; 80% can articulate efficiency gains.
Organizations investing in people-first leadership nearly 3x more likely to outperform.
High-trust environments deliver higher motivation, lower turnover, and revenue per employee.
AI delivers impressive short-term gains. The survey data shows 74% of employees agree that AI improves their work, and 80% can clearly articulate how it increases efficiency. However, the report identifies "the baseline trap" of mistaking early productivity wins for lasting advantage. As AI becomes standard across industries, early wins become baseline, and competitive advantages equalize quickly. AI raises the performance baseline, but it doesn't raise the ceiling.
Despite AI's efficiency gains, the research uncovered a troubling secondary effect. Nearly three in ten employees report feeling less motivated today than a year ago. Many are experiencing an "energy drain" despite increased productivity. Reliance on AI has reduced peer interaction, leaving people feeling more isolated despite being more "efficient." Additional AI adoption barriers persist: 36% of employees disagree that their manager reinforces AI use, 25% say expectations for AI use are unclear, and 42% report best practices are not consistently shared.
Organizations intentionally investing in people-first leadership are nearly three times more likely to outperform their peers. High-trust environments deliver measurable performance improvements in higher employee motivation, lower absenteeism, lower turnover, more revenue per employee, and outperformance in market value. Holly Procter, President of FranklinCovey Enterprise Division, stated: "In an AI-enabled world, distinctly human capabilities matter more, not less. Trust, judgment, character, discernment, creativity, collaboration, and execution cannot be automated or outsourced. AI adoption doesn't move at the speed of technology. It moves at the speed of trust."
The research uncovered a widening perception gap between how leaders believe they are showing up and how their teams experience them. Fewer than 7% of teams describe their trust level as world-class. The report identifies a "Breakthrough Zone" where human capabilities like trust, judgment, and collaboration act as force multipliers. The most critical leadership activities—mobilizing people, holding others accountable, and building shared momentum—remain profoundly human.
Paul Walker, FranklinCovey CEO, stated: "Technology enables progress, but humans mobilize technology and people to drive breakthroughs. AI frees up time for employees, but that doesn't automatically result in higher-value work. Organizations winning with AI won't just be the most technological. They'll be those that will value and develop leaders with capabilities that amplify human potential. The future doesn't belong to organizations that simply adopt AI faster. It belongs to those who integrate it wisely, using technology to amplify human capabilities rather than replace them."
About FranklinCovey
FranklinCovey is a global leadership and organizational performance partner that gives strategy the human edge. It helps organizations achieve the breakthrough results that matter most. Using proven, principle-centered frameworks and practices, it builds high-trust leaders, teams and cultures and helps clients translate strategy into consistent execution. For more than 40 years, it has tested this approach with thousands of clients from Fortune 100 companies to educational and government institutions, providing professional services across 160 countries.
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