AI in the Workplace: Transforming the Future of Work

Sometimes, technology makes it easier to get work done. Other times, it reshapes work in ways that are almost unrecognizable. That dichotomy is AI in a nutshell: It fundamentally changes work environments in ways we still can’t predict.

Artificial intelligence (AI) is a field of computer science that enables software and machines to perform tasks that have traditionally been done by humans. Expectations of what AI is capable of are high—and not always accurate—as creators and innovators push the boundaries of what we think is possible. In the face of remarkable innovations, and a lot of questions, many companies and individuals are anxious to hold on to their competitive edge.

In this guide, we’ll look at the impact AI has had so far and what businesses of all sizes are doing about it. We’ll share the benefits and key applications driving businesses forward as well as the hurdles that can get in the way. Then we’ll explore how you can integrate AI into your organization—a five-step plan to help you create a path toward success.

The impact of artificial intelligence in the workplace

If your company hasn’t invested in AI, it’s only a matter of time. The U.S. Chamber of Commerce found that 98% of small businesses already use AI-enabled tools to support improved productivity, efficiency, or innovation.

That diffusion has happened shockingly fast, with businesses drawn to the incredible chance to be on the leading edge. Applications such as automation, data analysis, and speed have the potential to reduce costs, boost efficiency, improve innovation, and propel a company forward—if it can figure out how to harness AI to its advantage.

And that’s where this period of transition and exploration gets complicated.

For example, companies need specialized skills that they don’t necessarily have in-house. As a result, many organizations are turning to freelance talent for help. In an analysis of year-over-year trends in in-demand skills, Upwork saw a surge in demand for AI skills as well as related data science and analytics skills. There’s also a growing need for more hands-on expertise such as project management and administrative support.

“Our research has found AI is unlikely to replace most jobs, but will certainly change the tasks and skills required for the workforce to generate value.”
— Kelly Monahan, Managing Director, and Ted Liu, Research Manager, Upwork Research Institute

And new technology doesn’t always roll out smoothly. An overwhelming majority of C-suite executives (96%) expect AI tools to increase their company’s overall productivity. However, many don’t have a clear way to get there: Nearly half (47%) of employees who use AI say they have no idea how to achieve those gains, and 77% say AI tools have actually decreased productivity and added to their workload.

By cultivating a culture of curiosity and experimentation with your team, your organization will be better positioned to determine which applications will have the biggest impact in your workplace and anticipate the tests you could face along the way.

Benefits of AI integration into your business

When AI enters the conversation, generative AI tools like ChatGPT tend to dominate because they’re the most accessible and widely used by the general public. However, other AI techniques such as machine learning, computer vision, natural language processing (NLP), and robotics can have broader applications to solve real-world problems.

Enhanced efficiency

AI tools can automate repetitive tasks, allowing teams to focus on higher-value strategic and creative work, thus increasing overall productivity.

Competitive advantage

By integrating AI, companies can optimize operations, reduce costs, and improve cash flow, leading to better financial performance compared to their competitors.

Improved decision-making

AI can turn vast amounts of information into actionable insights, enabling business leaders to anticipate market changes and make quicker decisions across the business.

‍Enhanced customer service

AI-powered chatbots and virtual assistants can be game changers for companies. They offer 24/7 customer support, improving satisfaction while reducing labor costs and enabling the core support team to focus on more complex issues.

Greater innovation

When human workers can concentrate on the strategic parts of their roles, the environment becomes more conducive to creative problem-solving.

Risk management and fraud detection

AI can effectively find and mitigate risks by leveraging real-time data analysis, predictive analytics, biometric verification, and adaptive learning to identify, predict, and prevent fraudulent activities.

Business growth
Putting AI to use for your company makes growth possible. Adjust your team’s priorities to explore new revenue streams, accelerate product development, optimize operations, reduce time to market, enhance marketing strategies, or scale the business.

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Wondering how AI can work for your business? Hire an AI expert on Upwork.

Key AI applications in the workplace 

Artificial intelligence uses large amounts of data, human guidance, and mathematical probability in order to perform specific types of tasks or solve particular types of problems. The AI technologies that currently exist fall within something called narrow AI, which sounds a lot less dramatic than some of the hype around AI might have you believe. 

Within those parameters, we can create complex systems that do many useful things. U.S.-based small businesses, for example, have incorporated AI into different processes including:

• Marketing and promotions
• Developing customer insights
• Communicating with customers and prospective customers
• Managing customer relationships
• Identifying potential customers
• Managing cybersecurity
  Here’s a look at other ways companies are using AI in business.

Automation of tasks

AI-powered automation uses software or hardware (e.g., robots) to perform repetitive or routine activities with minimal human involvement. In the past, tasks such as data entry and processing may have taken significant human effort; now AI-powered software can automatically input, validate, and manage data. Other administrative tasks, such as managing emails or organizing documents, can be streamlined using AI assistants in a fraction of the time. Sales automation can make the transactional elements of purchases easier for customers and sellers, while freeing up sales reps for relationship marketing and solution selling.

Chatbots and virtual assistants

AI is transforming customer service and internal support. With chatbots and virtual assistants, customers can access support 24/7 with interactive responses that can resolve the most common inquiries and troubleshooting issues. Problems are solved quickly, reducing the workload so human support teams can focus on more complex requests. By leveraging customer data, AI can also deliver a more personalized experience that increases engagement and loyalty.

Data analysis

AI tools excel at processing and analyzing large datasets to provide valuable insights that help your team make more informed decisions. With predictive analytics, machine learning models can help forecast trends and shifts in the marketplace. Insights are also available in real time with up-to-date analysis.

“Data visualization is the perfect way to enable senior leadership to leverage data to make better-informed decisions,” said Aurélie Dussenne, a data visualization expert. However, a lot of companies don’t understand how to get power from the data. 

An independent contractor like Dussenne can step up to help. For example, her typical client projects include trend predictions, inventory optimization, sales performance enhancements, survey analysis, as well as metrics and tracking of objectives and key results (OKRs). 

Connect with data analysts on Upwork to learn how your company can get started.

HR and recruitment

One in 4 organizations uses AI to support HR-related activities, especially to reshape the recruitment process, learning and development, and performance management. AI can streamline processes such as resume screening and employee sentiment analysis and help break complex jobs into smaller tasks, making it easier to match skills to tasks and identify gaps.

“AI is more than a disruption to traditional business models—it’s a disruption in how we think about talent.”
— Read Transformative Tech: Boosting Business Innovation With Generative AI

Collaborative tools

Popular collaboration platforms like Asana and Zoom are rapidly expanding the capabilities of their AI assistants to improve teamwork and innovation. AI is being used to add meeting enhancements such as real-time transcription, language translation, and smart scheduling. In project management, AI aids in tracking project progress, reevaluating priorities, and following workflows.

Overcoming challenges of AI implementation

One of the biggest challenges to implement AI for business is simply how much change is happening at once. “The steam engine took 61 years—61 years from the time it was developed until the time we actually saw productivity gain from it,” futurist and author Ravin Jesuthasan reflected on the Big Questions podcast with Cal Fussman. “Electricity took 32 years; the PCs took 15. AI is expected to take less than seven.”

Understanding what AI can do

Even with an ever-expanding number of applications available, a survey by Gartner found that proving the value of AI is the number one barrier for nearly half of business leaders. 

Generative AI has been a catalyst for adoption at an enterprise level, but it’s most often embedded in existing tools rather than building overall AI capabilities. As Leinar Ramos, senior director analyst at Gartner, pointed out, “This creates a window of opportunity for AI leaders, but also a test on whether they will be able to capitalize on this moment and deliver value at scale.”

Technical expertise

Using AI more broadly may be stunted in part by another significant barrier: lack of talent and skills. Tracking the most in-demand skills on Upwork shows many organizations are turning to freelancers to meet key project needs and address skills gaps.

“Emergent technologies like generative AI are having a major impact on the skills-based economy,” said Kelly Monahan, managing director of the Upwork Research Institute. “Of course business demand for these types of skills is increasing, but we’re also seeing a complementary impact, whereby AI technology is driving greater demand for all types of work across our marketplace.”

High-quality data

Dussenne, the data visualization expert, explained that messy data generates messy results. Some AI initiatives require access to relevant high-quality, large-scale datasets. Before you start a new project, consider:

• What datasets already exist?
• Where are they being stored?
• How are they being refreshed?
• Is the data clean?
• Does your organization have a data cleaning process in place?

Data security

Data also needs to be managed securely and efficiently—a top concern for chief information officers (CIOs), especially if your company’s operations are impacted by privacy laws such as HIPAA, GDPR, or CCPA. 

So it’s little surprise that a survey by Salesforce found that 67% of CIOs are “taking a more calculated approach to [AI] implementation compared to other technologies.” 

But there’s a gap: 11% of CIOs said their organizations have “fully implemented” AI technology into their workflows, 18 to 38 percentage points less than leaders in other business functions. Juan Perez, CIO of Salesforce, said this “shadow AI” underscores how urgent it is to have a plan in place.

“According to data protection company Cyberhaven, as much as 11% of the data that workers feed into ChatGPT may be confidential company information, which could expose a company to risks like data breaches or loss of intellectual property rights.” 

— Read The Top Generative AI Legal Issues To Consider

Managing expectations about AI

According to ADP, 85% of employees expect AI to impact their jobs in the next two or three years, but they don’t agree on whether that’s a good thing. 44% think AI will offer helpful benefits; 41% think at least parts of their existing functions will be replaced.

Fears of job displacement can be diffused, at least in part, by effective change management strategies that prioritize skills development and a smooth transition. Regardless, resistance to change is common and it can be difficult to get buy-in.

Ethical and social implications

From bias in decision-making processes to data privacy anxieties and the increasing ubiquity of “deep fakes,” multiple complex ethical issues come alongside the use of AI. In order to maintain trust, stay compliant with legal regulations, and avoid social harm, business leaders need to navigate carefully.

How to integrate AI into your business

While executives in the C-suite expect AI tools to increase their company’s overall productivity levels, great road maps are few and far between; just 13% report having a well-implemented strategy and barely a quarter have AI training programs in place. It’s a small wonder that the workforce is feeling the strain.

This is a chance to do better.

Some companies have learned how to adapt to these challenges and are gaining an edge through lower operating expenses, lower debt-to-equity ratio, and a greater likelihood of increased free cash flow. Upwork calls these top performers Work Innovators and we’re working hard to learn—and share—more about their playbook.

“Work Innovator companies excel by keeping their operations lean and cost-effective, and by recognizing where automation can best be introduced to free workers up for other, higher-level tasks.”

— Read Work Innovators: A Playbook for Innovation in an Uncertain World

A Work Innovator is a high-performing company that embraces change and often outperforms its competitors as a result. AI integration isn’t the only differentiator; Work Innovators strategically combine distributed work, flexible talent strategies, and advanced technologies in order to thrive in the face of disruption. However, they take a more human-centric and collaborative approach to implementing new technologies that can help reduce the resistance and anxiety that often accompany AI.

With those principles in mind, consider the following five steps to help set expectations and create an effective plan to lead your organization forward.

Step 1. Identify business needs

As you consider how to incorporate AI into your business, identifying where these technologies can add value—and avoiding unnecessary tool sprawl—increases your chance of success. That means figuring out where your business’s pain points, bottlenecks, and opportunities are.

Gather a cross section of stakeholders early in the process, reaching beyond leaders and department heads to get the best information. Mayssam “Sam” Naji, a Zurich-based AI consultant, observed that the leaders with a vision for AI transformation aren’t necessarily the ones who will be hands-on with the results. When he started working with one enterprise organization, for example, Naji scheduled one-on-one calls with everyone on the team. This comprehensive input enabled him to produce a better-informed solution.

Then, you’ll need to prioritize. Start small with a pilot project, which will allow you to test potential solutions in a controlled environment. For each opportunity, consider:

• Potential impact
• Return on investment (ROI)
• Feasibility
• Alignment with the company’s overall needs

With a better understanding of where AI can make a difference, you can allocate resources more effectively and ensure the AI initiatives you undertake will have the right effect.

Step 2. Choose the right AI tools

To select AI tools for your business, it’s important to understand what AI is capable of and whether it offers a meaningful benefit. “Using AI is kind of like swinging a sledgehammer on something that may only need a very light tap,” said Arun Godwin Patel, a top AI specialist on Upwork. 

“AI shouldn’t be seen as the ultimate solution; it should be a tool that helps you get to the solution,” he said. “If a problem can be solved with a spreadsheet or with some simple rules, there's no point in using AI.”

Consider which technologies best align with your business needs, then decide whether you’d benefit from a custom solution or an off-the-shelf tool: 

• Compatibility. Look for tools that can integrate with your existing systems and infrastructure.
• Flexibility. Seek tools that can expand with other modules and features if your needs change and scale up if your business grows.
• Good service partner. While budget is an important factor, reputation is also essential. You’ll want a reliable vendor with a proven track record in your industry and support services to help guide you through this process.
• Cost. Compare the operational costs of each solution against implementation and maintenance. You may also have a choice between off-the-shelf and custom solutions. Existing software can generally be customized, but its capabilities will be fixed, while a custom application will be built to your specifications. 

Marcelo Ortega is the founder of Eidos.ai, a development studio that specializes in machine learning solutions. Existing product teams are a key group of customers: By working with an agency, companies can try new things without diverting energy from other priorities. 

“Doing something in-house doesn’t just take engineering time; it also puts pressure on project managers and other resources,” Ortega said. “[An agency] can spend time exploring an idea and offering potential solutions. It's a matter of complementation.”

Need help identifying the right AI opportunities for your company? Connect with a freelance AI expert on Upwork.

Step 3. Develop a road map

A significant challenge is that your employees are already tired of constant change. According to a survey by the Upwork Research Institute, 71% of full-time employees are burned out and 65% said they’re struggling with employer demands on their productivity. 

But employees also see great potential in AI tools. 65% believe AI technologies can increase productivity. The key to meaningful results is to implement new AI programs with realistic expectations while simultaneously building confidence and resiliency across your team.

With a change management approach, you prioritize adaptability, resiliency, and morale while managing risk and resistance. To achieve the benefits of AI, your road map might include:

• A clear end point. Set SMART goals and a scope that clearly defines what success looks like—whether that’s a measure of efficiency, cost savings, revenue growth, customer satisfaction, or another meaningful target.
• An infrastructure strategy. Ensure that the necessary infrastructure, such as data storage, computing power, and network capabilities, is in place. Also, consider the need to engage freelancers to help manage AI operations or facilitate the transition.
• A plan for engagement. Regularly talk about the benefits and expected changes connected to AI implementation. Open communication will be essential in order to adapt the road map as you move forward. Regular feedback will help you spot resistance and find ways to improve buy-in.
• AI champions. Enlisting champions from different teams can help troubleshoot problems, improve buy-in, and support shifts in organizational culture. By demonstrating the practical uses and benefits of AI, they serve as role models; as trusted peers, they can promote and support new ways of working.
• A robust training process. Whether formal training, mentoring, or a peer-to-peer support system is most appropriate for your organization, an environment that encourages continuous learning is essential for change management. Educational resources that build competence and comfort with technical skills and new ways of thinking can make or break efforts to integrate AI, but too often they’re inadequate or overlooked.
• Short-term milestones and long-term lessons. While your AI pilot program will be time-limited and have clear milestones, it’s important to think about long-term goals from the start. The pilot will be part of the foundation for future expansion, so watch for situations that could impact scaling or broader integration.

Implement changes gradually, ideally using a phased approach, so your team has time to test and experiment with AI systems and tools before they have to integrate them into daily workflows. This also allows time to gather insights, assess (and reassess) your strategy, and adjust as needed for any changes that could impact long-term adoption.

Step 4. Invest in training

Leaders often have high expectations for their AI implementation efforts, but they rarely have a plan to achieve those gains. Less than a third of leaders (26%) have AI training programs in place for their workforce and only 13% report a well-implemented AI strategy.

Within that gap lies much of the anxiety workers have about AI’s potential impact on their financial well-being and professional growth. In short: People don’t know what they don’t know, and AI’s rapid expansion has left a lot of room for the unknown.

“Are you dealing with a human problem? A machine problem? Or is there a breakdown happening when humans and machines interact? This will help you decide whether you need to improve your technology, source new team members with competitive skills, or focus on strengthening the cooperative skills in your workforce.”

— Kelly Monahan, Managing Director, Upwork Research Institute
Read Transformative Tech: Boosting Business Innovation With Generative AI

With training and upskilling, you can help your team advance with self-assurance and curiosity. This might include regular workshops, e-learning, peer mentorship, industry conferences, or guest speakers. Some companies engage freelance AI professionals to mentor their teams.

Whether your training initiatives are meant to enhance skills, help adapt to new workflows and ways of thinking, or improve technical readiness, the goal is to encourage continuous learning and experimentation. 

Considering the pace of its evolution, AI-driven upskilling isn’t a “one-and-done” situation; it’s important that employees seek out new information, stay ahead of technological trends, and continuously improve their skills and methods.

Step 5. Monitor and evaluate

Any integration plan should be monitored continuously to make sure everything is progressing as expected. Setting and tracking key performance indicators (KPIs) can help:

• Ensure AI-driven tools and processes are accurate, efficient, and reliable
• Adjust existing and future implementation plans based on both performance data and feedback
• Identify and mitigate ethical issues or biases that may emerge
• Ensure compliance with legal standards

Ongoing evaluation helps you track developments across different departments and processes. Is AI working as intended? What impact are unintended consequences having on your team or your customers? How can you improve the next phase of the implementation plan? 

By gathering qualitative and quantitative data, you can compare actual results against the objectives you initially prioritized then drive continuous improvement in organizational practices and outcomes.

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AI integration success stories

“Businesses should be aware that there is something coming and, if you're not aware, maybe your competition is. You need to learn what’s happening on the ground in your industry.” 

— Mayssam “Sam” Naji, AI Consultant

How do companies use AI? From data analysis to generative AI, see how these four companies are working smarter with help from AI-driven solutions.

Lighthouse built an AI chatbot to help their team focus on high-value work

Lighthouse is a rental location service with a unique twist: When renters find a new home through Lighthouse’s network, they get a cash-back rebate.

Apartment locators spend a lot of time searching for apartments that match renters’ preferences, and then communicating with users through phone, email, and chat. Matt See and Alan Chang, cofounders of Lighthouse, were curious to see if generative AI could free up some of their team’s time.

Working with talent on Upwork, they were able to build a chatbot with access to 9,000 buildings that’s always on and always responsive. “You can chat with the AI and tell it what you want, such as an apartment under $2,500 per month, with a pool, and a Starbucks nearby,” See said. “The AI can tap into a lot of data sources to find exactly what you want—it does a really good job at that.”

By handing off some of the initial work to the chatbot, Lighthouse’s locators can spend more time on high-value work that requires a human component—such as calling renters to provide support and communicating directly with apartment complexes.

Valere Labs empowers a recruiter with data-driven insights

Valere Labs builds AI solutions for clients that might focus on anything from business operations and health care services to children’s entertainment. Guy Piston, the company’s CEO, said the first challenge is knowing where the data will come from—but once you have it, you can get value from it in a lot of different ways. 

One client, a recruiter, had done a great job of aggregating data from job review sites like Glassdoor. Piston said their first project was an app that displayed all that data in a nice, readable way—but they didn’t stop there.

“In talking to the client, we established that recruiters never really know when a worker will leave a company. It’s an embarrassment of riches that needs interpretation,” Piston said. “We know the answer is in this data. So we used AI to look at a specific company’s feedback and create a sentiment score. A recruiter can look at the score and get a feel for if workers might be ready to leave that company.”

Shapeion Technologies helped automate customer review analysis

Alexander Fridman is an AI and big data consultant whose agency, Shapeion Technologies, specializes in machine learning and creating minimum viable products (MVPs). 

Working with a marketing research firm in the multifamily rental industry, Shapeion Technologies spearheaded the complete automation of their customer review analysis.

Initially, the client spent substantial time, energy, and resources each month to manually sort through tens of thousands of reviews. The agency transformed this process by implementing advanced deep learning and natural language processing to automate the review analysis process. 

As a result, the client can efficiently analyze feedback at scale, drastically reduce operational demands, and quickly respond to customer feedback and comments.

Integrating AI can drive growth and help your business compete

Artificial intelligence can have a profound impact on how your organization does business, helping your team to access data and work smarter in ways that, until recently, felt largely out of reach. And it’s only the beginning; we’re still figuring out what’s possible with AI.

By considering the strategies discussed in this guide, you can improve your results with AI implementation and build a team that’s more resilient and poised to adapt as the workplace continues to evolve.

Build the future of work with Upwork

As your business explores how it can leverage AI, you may not have the knowledge or in-house resources to achieve the results you’re looking for. By engaging AI freelancers on Upwork, you can find the expertise you need to get clarity around the AI opportunities that actually fit your company’s overall needs.

‍Join Upwork for access to top AI talent and tools to move your business forward.