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AI is turbocharging worker productivity but it’s also wreaking havoc on their mental health

Brit Morse
By
Brit MorseBrit Morse
Brit MorseBrit Morse
Leadership Reporter
Brit Morse
By
Brit MorseBrit Morse
Brit MorseBrit Morse
Leadership Reporter
July 9, 2025 at 12:40 PM UTC
Businessman with headache at his office desk
Workers are getting more done with AI, but at a cost. Getty Images

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Companies are eager for employees to use AI at work, and multiple reports and case studies point to the productivity gains that come from adopting the technology. But as workers rely more heavily on AI, new research highlights the potential impacts on their mental health.  

Employees that take advantage of the latest AI tools reported a 40% boost in their productivity, according to a new report from freelancing platform Upwork. C-suite leaders, for their part, are also noticing a difference—around 77% say they’ve observed productivity gains from AI adoption. 

But even though workers are getting more done, they’re paying a high emotional toll. The majority (88%) of the most productive AI-enabled workers report feelings of burnout due to an increase in workload. And as a result, these workers are twice as likely to consider quitting their jobs, the report finds. 

“That’s a flashing red light for CHROs: Productivity gains can disappear overnight if high performers walk out the door,” Kelly Monahan, Ph.D and managing director of Upwork’s research institute tells Fortune.

AI in the workplace is having other effects on workers than just burnout. Around 62% of workers say they’re not clear on how the technology contributes to their company’s bottom line. And more than two-thirds of employees who use AI the most say they have better relationships with it than their human colleagues, contributing to a sense of disconnect and alienation. 

AI isn’t just changing what people do in the workplace, says Monahan. It’s changing the “social architecture” of the office. 

“AI is increasingly becoming a teammate, and no longer just a background tool,” she says. “Forward-looking CHROs are redesigning workflows, roles, and even career paths, so that humans and AI agents complement, rather than cannibalize, each other’s strengths.”

Brit Morse
brit.morse@fortune.com

Around the Table

A round-up of the most important HR headlines.

Will AI lead to job cuts for the oldest or youngest generations? Experts weigh in on the potential outcomes.New York Times

People managers now oversee about twice as many workers as just five years ago, a new analysis finds.Axios

In an attempt to lure more shoppers, Amazon is turning its usual Prime Day of deals into an entire week, doubling the length of this year’s promotion. Wall Street Journal

Watercooler

Everything you need to know from Fortune.

AI in the classroom. As the new technology becomes more commonplace in higher education, students are raising concerns about professors’ use of it. —Beatrice Nolan

Holding back. Melinda French Gates may be one of the wealthiest women in the world and yet she’s not writing checks for her daughter’s new startup. —Orianna Rosa Royle

Helping out. Amazon is reportedly asking some workers to volunteer to assist with orders on Prime Day by asking office workers to help pick and pack orders. —Chris Morris

This is the web version of Fortune CHRO, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.

About the Author

Brit Morse
By Brit MorseLeadership Reporter
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Brit Morse is a former Leadership reporter at Fortune, covering workplace trends and the C-suite. She also writes CHRO Daily, Fortune’s flagship newsletter for HR professionals and corporate leaders.

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