• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Success

From ‘fear factor’ to ‘cognitive fatigue’: KPMG principal on the quarter when everyone started thinking about AI differently

Nick Lichtenberg
By
Nick Lichtenberg
Nick Lichtenberg
Business Editor
Down Arrow Button Icon
Nick Lichtenberg
By
Nick Lichtenberg
Nick Lichtenberg
Business Editor
Down Arrow Button Icon
October 9, 2025, 3:39 PM ET
stress
Is your AI like a toddler?Getty Images

AI agent deployment at major U.S. organizations has entered a period of hyper-growth, with workplace culture and management strategies evolving just as rapidly, according to the latest KPMG Q3 2025 AI Quarterly Pulse Survey. In just six months, the share of organizations with deployed artificial intelligence agents quadrupled from 11% to 42%, according to the survey of 130 U.S.-based C-suite and business leaders representing organizations with annual revenue of $1 billion or more.

Recommended Video

At the same time, according to Rahsaan Shears, principal and aIQ program lead at KPMG U.S., the third quarter is when people’s approach to the technology fundamentally shifted. The “fear factor” was gone as more people actually worked with these tools, she said, and in its place a “cognitive fatigue” emerged. Echoing this sentiment, the KPMG report highlights a dramatic drop in employee resistance—from 47% last quarter to just 21% now. Over half of the workforce now either accepts or actively embraces AI agents. Technology departments lead the charge, with 95% reporting agent usage for productivity gains, followed closely by operations and risk management.

The ‘human in the loop’ is reassuring—and exhausting

Shears said C-suite leaders are telling her that as more and more workers have engaged with the technology, either through enterprise tools or participating in a proof of concept by their organization, “they can see where it’s an enabler.” But based on its maturity, it hasn’t reached the point where it can entirely replace human workers. There needs to be “a human in the loop or a human on the loop.”

A defining insight from Shears is the changing relationship between humans and AI at work. Shears describes the technology as “a toddler”—capable of impressive feats yet still immature and requiring context, guidance, and oversight. “It’s not a toddler in all fields—software development, for instance, it’s much more advanced.” But for most enterprise uses, it still needs human intervention, she observed.

This ongoing need for human skills, Shears believes, has made employees more comfortable with AI, seeing it as a tool that enables rather than replaces them. “That persistent need for human engagement—I think people have found that comforting,” Shears said, emphasizing the unique skills now required: critical thinking, questioning, and adaptability. She said she believes “Renaissance skills” will be increasingly important, but clarified that it doesn’t mean the workforce will be full of poetry majors. Still, “the art of thinking, the art of questioning” will be crucial for being the human in the loop.

When asked if people have found that AI tools are bad or don’t produce a return on investment, Shears said people went from having an expectation that AI would be just as good at work as someone with lots of experience to understanding that, while it can go much faster than humans at many things, like a toddler, it can cause a lot of damage without close supervision.

Rethinking success and ROI in the AI era

Both KPMG and Shears argue that traditional business metrics are insufficient to capture AI’s transformative impact. According to the survey, 78% of leaders say conventional KPIs miss much of AI’s value. Shears said the same is true of ROI and the much-publicized failure of many AI pilots to achieve it. “I believe that the traditional measures that we’ve looked for are not going to tell us the full story, because we’re never going to go to a very lengthy analysis, because we don’t know how to measure necessarily all the right indicators. I’m very interested and intrigued about how this is going to come to fruition,” she said, adding that KPMG was looking at a broad array of signals to evaluate AI results.

KPMG’s data reflects this shift—organizational leaders are now tracking productivity (97%), profitability (94%), and quality improvements (91%) as evidence of AI’s business impact, even as broader enterprise outcomes continue to evolve.

Toward a new kind of workforce

Workforce transformation is now firmly underway, with Shears seeing hope especially for entry-level workers who are “digital first,” yet now face higher expectations for skepticism, critical thinking, and adaptable reasoning.

When asked if this will reshape how entry-level work feels and looks, Shears said it’s nuanced, because she’s observed a propensity among younger workers, raised on social media and constant iPhone access, to “trust” their devices and technology. In the case of AI, because it’s “more early in its maturity, they need to be more skeptical, which is a different kind of relationship than they historically had from a digital interaction perspective.” This coincides with KPMG’s finding that 56% of leaders expect to reshape entry-level recruiting within the year. When asked if employers need to rethink entry-level work to be less menial and more critically oriented, Shears replied that it’s already happening: “We’re seeing it.”

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
Nick Lichtenberg
By Nick LichtenbergBusiness Editor
LinkedIn icon

Nick Lichtenberg is business editor and was formerly Fortune's executive editor of global news.

See full bioRight Arrow Button Icon

Latest in Success

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Success

Young dejected worker on phone
SuccessGen Z
USAA CEO says Gen Z ‘are not going to be as well off’ as boomers and Gen Xers—they need to take ownership of their success, he urges
By Emma BurleighMarch 1, 2026
2 hours ago
heitmann
CommentaryEntrepreneurship
Here’s how to build something that lasts, from the founder of a $300 million bootstrapped company that’s been growing for 28 years straight
By Tim HeitmannMarch 1, 2026
3 hours ago
Gamers celebrating
SuccessCareers
Meet the Gen Z college students who turned Excel into a competitive esport—they’re competing in spreadsheet challenges and it’s helping them land jobs
By Preston ForeFebruary 28, 2026
1 day ago
Successphilanthropy
Dolly Parton’s philanthropy inspiration is her father who couldn’t read or write: ‘I saw how crippling that could be’
By Sydney LakeFebruary 27, 2026
2 days ago
Personal Financewealth management
The Great Wealth Transfer is already happening as millennials hitting their ‘Peak 35’ are richer than ever
By Catherina GioinoFebruary 27, 2026
2 days ago
Spencer Rascoff, chief executive officer of Match Group Inc
SuccessGen Z
CEO of the tech company behind Hinge and Tinder set up an employee hotline where staff can DM him anytime: ‘No hierarchy. No filters. Just real input.’
By Emma BurleighFebruary 27, 2026
2 days ago

Most Popular

placeholder alt text
Success
Japanese companies are paying older workers to sit by a window and do nothing—while Western CEOs demand super-AI productivity just to keep your job
By Orianna Rosa RoyleFebruary 27, 2026
2 days ago
placeholder alt text
AI
The week the AI scare turned real and America realized maybe it isn't ready for what's coming
By Nick LichtenbergFebruary 28, 2026
1 day ago
placeholder alt text
Middle East
Iran is now on 'death ground' amid existential threat from U.S. attacks and could 'go big' in retaliation, former NATO commander warns
By Jason MaFebruary 28, 2026
20 hours ago
placeholder alt text
Success
Walmart exec says U.S. workforces needs to take inspiration from China where ‘5 year-olds are learning DeepSeek’
By Preston ForeFebruary 27, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of gold as of February 27, 2026
By Danny BakstFebruary 27, 2026
2 days ago
placeholder alt text
Middle East
Dubai’s worst nightmare unfolds as Iran strikes Gulf neighbors
By Dana Khraiche, Fiona MacDonald and BloombergFebruary 28, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.