Tags: artificial intelligence | jobs | productivity | humans

AI's Productivity Promise Falls Short in the Real World

AI's Productivity Promise Falls Short in the Real World
(Dreamstime)

By    |   Thursday, 22 January 2026 10:52 AM EST

So far, artificial intelligence hasn’t wiped out jobs — and it still can’t function well without human judgment.

That blunt assessment from a veteran designer who works with artificial intelligence every day cuts through the hype echoing from corporate boardrooms to the Davos elite, The Wall Street Journal reports.

“Unless you have some judgment or discernment in the field you’re in, you could really do harm just by assuming whatever an AI says is factual,” the designer warns.

While corporate leaders tout AI as a productivity miracle, many workers on the front lines say the reality is far less impressive.

A new survey of 5,000 white-collar workers by AI consulting firm Section exposes a striking disconnect between executives and employees.

CEOs insist AI is saving hours every week. Workers say: not really.

Nearly 40% of workers report AI saves them no time at all. Only 2% say it saves more than 12 hours a week.

Compare that with the C-suite: just 2% of executives say AI saves no time, while 19% claim it frees up more than half a workweek.

Why the gap? Workers are the ones using AI on real customers, real code, and real consequences — not slide decks.

“Executives automatically assume AI is going to be the savior,” said Steve McGarvey, a user-experience designer in North Carolina.

McGarvey has spent hours correcting AI tools that confidently delivered wrong answers — including flawed accessibility fixes that could harm visually impaired users.

AI, he said, needs human discernment. Without it, mistakes multiply.

Despite the hype, most workers aren’t using AI to replace complex tasks. They’re using it for basic functions such as: replacing Google searches, drafting emails or document, or light research assistance.

Far fewer trust it with data analysis, coding, or mission-critical work. When they do, the results are hit or miss.

One engineer spent an entire afternoon fixing code AI was supposed to repair in minutes. However, for another task that once took days, AI solved it in 20 minutes.

“It’s completely reset my ability to estimate time,” one worker said.

A separate Workday survey found most employees saved some time using AI — but much of it was lost fixing errors. The company calls it an “AI tax” on productivity.

That helps explain why many workers feel overwhelmed or anxious about AI, not excited. In fact, 40% said they’d be fine never using AI again.

Big Spending, Small Profits

Here’s the part investors are cautiously watching: AI hasn’t delivered profits yet.

A PwC survey released at the World Economic Forum in Davos of 4,500 CEOs found similar results from the Section poll on AI productivity and the bottom line.

Only 12% of the CEOs in the PwC survey say AI has produced both cost savings and revenue gains, and more than half say AI has delivered no meaningful financial benefit.

Some high-profile experiments have already backtracked.

Klarna replaced hundreds of customer-service agents with AI — then rehired humans to handle tougher questions.

Duolingo said AI would replace contractors — yet ended up with a 14% larger workforce a year later.

AI isn’t replacing workers — and it isn’t rescuing productivity either. Not yet.

For now, artificial intelligence is a powerful assistant that still needs human judgment, real-world testing, and a heavy dose of skepticism — especially from workers whose jobs are on the line.

© 2026 Newsmax Finance. All rights reserved.


StreetTalk
So far, artificial intelligence hasn't wiped out jobs — and it still can't function well without human judgment.
artificial intelligence, jobs, productivity, humans
551
2026-52-22
Thursday, 22 January 2026 10:52 AM
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