Want to Maximize Your AI ROI? Try Sharing the Wealth of Productivity Boosts With Your Staff

Why It Matters

Without clear productivity gains, AI investments risk becoming cost centers, while equitable sharing of any gains is crucial for workforce morale and retention.

Key Takeaways

• 95% of firms see zero AI ROI
• Only 14% of employees get net AI benefits
• Productivity gains often erased by AI error corrections
• Reich argues work‑week cuts must retain full pay
• Businesses should plan equitable profit‑sharing from AI

Pulse Analysis

The current wave of artificial‑intelligence adoption is marked by unprecedented capital inflows, yet early data suggests the promised efficiency surge remains elusive. An MIT analysis of $30‑$40 billion in generative‑AI spend revealed that 95 percent of enterprises report no measurable return, while a Workday survey shows that even the minority who benefit often lose time correcting AI‑generated errors. These findings temper the exuberant forecasts from tech leaders and underscore the need for rigorous ROI tracking before scaling AI tools.

Labor economist Robert Reich adds a policy dimension to the productivity puzzle, arguing that any reduction in work hours must be matched by proportional pay. He dismisses the notion of a free‑lunch four‑day workweek, emphasizing that without tangible wage adjustments, AI‑driven automation could exacerbate income inequality. Reich’s stance resonates with growing concerns that AI’s upside may accrue primarily to shareholders and executives, leaving frontline workers with the burden of fixing flawed outputs without compensation.

For business leaders, the pragmatic path forward involves establishing clear metrics, pilot programs, and transparent profit‑sharing frameworks. Companies should quantify time saved versus time spent on error remediation, and tie any realized cost savings to employee bonuses or wage increases. By aligning AI incentives with workforce welfare, firms can mitigate backlash, improve adoption rates, and ultimately convert speculative hype into sustainable competitive advantage.

Want to Maximize Your AI ROI? Try Sharing the Wealth of Productivity Boosts With Your Staff

Illustration: Getty Images

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Every business era is marked by at least one innovation billed as The Next Big Thing, but it’s hard to remember anything generating the monumental hype that artificial intelligence has. Whether or not the tech manages to fulfill all that its backers promise, business owners should already be thinking about two likely entwined effects:

1. The real extent of the increased worker productivity it’s expected to generate.

2. Whether those gains will be shared with chatbot‑assisted employees in the form of higher pay.

University of California, Berkeley public‑policy professor and former Clinton‑administration Labor Secretary Robert Reich posed those questions in a Substack article published this week. The progressive Reich voiced skepticism about the quasi‑miracles that AI’s boosters claim the tech will deliver. Among those were predictions from JPMorgan Chase CEO Jamie Dimon and Microsoft co‑founder Bill Gates that new tools will eventually cut the average workweek by half or more for most employees. Elon Musk went even further, claiming AI and robotic innovations “will bring us to the point where working is optional,” and generate “universal high income” for those who don’t work.

“All of this is pure rubbish,” Reich retorted. “[D]on’t fall for the breathless rubbish about AI allowing employers to ‘free up’ employees’ time…. Here’s the truth: The four‑day workweek will most likely come with four days’ worth of pay. The three‑day workweek, with three days’ worth. And so on.”

While many business owners may not share Reich’s progressive worldview, they might still want to consider his reasoning as AI adoption alters workflows in their own companies.

“Zero return” on AI spending

The first point Reich made is that, so far, there’s little evidence AI is generating the cost savings or productivity gains its high‑profile evangelists tout. For example, an MIT study last August showed “despite $30–$40 billion in enterprise investment into GenAI, 95 percent of organizations are getting zero return” on that spending. Meanwhile, even businesses that do report increased efficiencies from AI are enjoying vastly smaller advances than expected.

More recent research by financial‑ and human‑relations‑management company Workday found that, while 85 percent of workers surveyed said using AI on job tasks saved them modest to considerable time, about 40 percent of those recouped hours were immediately lost by workers having to fix mistakes the apps made. “Only 14 percent of employees consistently get clear, positive net outcomes from AI,” the report said.