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The Hidden AI Tax: Why 40% of Time Savings Disappear

10 min read

87% of employees use AI at work. 77% say they’ve become more productive. Sounds like a digital transformation success story. But ask the uncomfortable question: if AI boosts productivity so effectively, why do only 14% actually see net gains? Where do the other 86% go?

Workday conducted a global study with 3,200 respondents – and found that behind the impressive numbers lies an inconvenient reality. Nearly 40% of time saved with AI is spent fixing its mistakes. This isn’t a bug in specific tools, nor a problem of “incorrect usage.” It’s a systemic failure in how organisations deploy artificial intelligence.

At mysummit.school, we’ve previously covered Dejan.AI (AI as a junior intern), Gallup (usage doubling in a year), and MIT (the gap between leaders and laggards). Workday adds a new angle: the measurable cost of low-quality AI output. And that cost turns out to be higher than many are willing to admit.

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The Hidden AI Tax: Why 40% of Time Savings Disappear
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