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

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
Future of WorkProductivity

AI productivity gains are real but so is bad management: ‘Leaders are really struggling to articulate what the vision and strategy is’

Sasha Rogelberg
By
Sasha Rogelberg
Sasha Rogelberg
Reporter
Down Arrow Button Icon
Sasha Rogelberg
By
Sasha Rogelberg
Sasha Rogelberg
Reporter
Down Arrow Button Icon
June 5, 2026, 1:13 PM ET
boss
Productive, but toward what end?Getty Images
Add Fortune on Google for similar content.

Earlier this year, Apollo chief economist Torsten Slok made an observation about AI’s “productivity paradox” as data emerged that employees could potentially save an entire workday a week by deploying AI, but economic data showed a steep drop in productivity: “AI is everywhere except in the incoming macroeconomic data,” Slok wrote in a blog post, echoing the famous paradox observed by Nobel laureate Robert Solow in 1987 during the information technology boom. “Today, you don’t see AI in the employment data, productivity data, or inflation data.”

Recommended Video

New data from Boston Consulting Group (BCG) not only confirms a similar phenomenon is happening in the workplace, but sheds light on why, providing a potential jump-start for businesses experiencing this productivity paradox. BCG’s 2026 Global AI at Work report, surveying nearly 12,000 frontline employees, found 42% of respondents reported eight hours of saved time, the equivalent of one workday a week, as a result of regular AI use, but 66% said they received limited to no guidance on what to do with the time they saved. Half said they’re not using that saved time for more strategic work.

According to David Martin, Global leader of BCG’s People & Organization practice, the productivity paradox, at least at the workplace level, comes down to a very human failure: leaders are not communicating clearly just why and how AI should be used in the office.

“Senior leaders are really struggling to articulate what the vision and strategy is on AI,” Martin told Fortune. “Consequently, it increases employee fear. It makes it harder for them to even understand what objectives they’re pushing for, and it trickles through to adoption, usage, and the like.”

The rise of tokenmaxxing

AI’s ability to make good on tech leaders’ lofty promises of productivity gains has come under fresh scrutiny as workplace adoption has continued to rise. For one, the technology has proven itself to be more expensive than human labor, in part a result of the enormous costs to run AI models, as well as token-based pricing models hiking up companies’ computing fees in a way that far outpaces improved output. Microsoft reportedly canceled much of its direct Claude code licenses, and Uber burned through its entire 2026 AI coding tools budget in the first four months of the year. Microsoft AI chief Mustafa Suleyman said as much earlier this week, telling Bloomberg that Anthropic is simply too expensive and the company is seeking alternatives.

“For my team, the cost of compute is far beyond the costs of the employees,” Bryan Catanzaro, vice president of applied deep learning at Nvidia, recently told Axios.

These surges in token usage driving up companies’ costs have come as companies push employees to find AI productivity gains. The Financial Times reported last month that Amazon employees were “tokenmaxxing,” in order to meet the company’s AI metrics. Other tech companies have employed similar techniques, including Meta, which set up an AI user leaderboard.

Gil Luria, head of technology research at brokerage D.A. Davidson, previously told Fortune the strategy is effective for increasing token usage, but little else.

“That doesn’t sound very healthy,” Luria said. “You get the behavior that you create the incentive for. So if you tell people they’ll succeed if they use a resource more, of course they’ll use it more.” 

The era of tokenmaxxing is over

To BCG’s Martin, the lack of company instruction around AI beyond calls to use it and use it often is why the technology’s potential benefits have laid fallow. 

“This whole tokenmaxxing thing is has probably run its course, and now it’s hitting their cost base in a pretty big way,” he said, echoing reporting by Fortune‘s Jeremy Kahn. “A lot of companies just gave AI to everyone, regardless of position, and I think now they’ll say, ‘Well, let’s be more thoughtful about who has access, and what is the business case? And are we delivering on it, ultimately? Then holding people accountable to meeting their targets, just like they would anything non-AI that they’ve been doing for the past 100 years.”

Indeed, the same tech companies enabling tokenmaxxing are now ending incentives around AI use. Last week, Amazon scrapped its internal tracking of AI use after employees deployed AI bots to compete useless tasks, according to the Financial Times.

“Please don’t use AI just for the sake of using AI,” Dave Treadwell, an Amazon senior vice-president, reportedly told staff.

At the Fortune COO Summit this week, Okta COO and President Eric Kelleher said he sees an enormous failure of imagination around AI adoption. “Everyone has the mandate [to adopt AI],” he said, but people are asking the wrong questions instead. “We have trained every manager in the world to think about one thing and that is, what’s their headcount? What’s the org chart look like? Who reports to who? How many layers do we have?” 

Another summit attendee, Rakuten International COO Adrienne Down Coulson, wrote in a Fortune commentary this week that C-suites pushing for additional AI use are far behind their “superhuman” workers. “Here’s the uncomfortable truth,” she wrote: “AI can’t fix a broken C-suite running on an antiquated operating system.”

Martin said companies thinking about how to integrate AI into their entire enterprise operating model have seen success in increasing AI adoption and leveraging the technology to increase productivity, but another element of success with use of workplace AI comes from assuaging fears around the technology. Recent BCG research found that when workplaces treated AI agents like digital employees as opposed to tools, it increased employee fears around being displaced. This fear inhibits workplace sharing and encourages secret AI use, he said.

“In a world where people are fearful, they are actually saying, ‘Okay, how can I get a leg up on my peers, so that I can position myself to be highly valuable?’” he said. “And because of that, they’re a little bit reluctant to talk to their peers about what they’re doing, and that has huge implications on the organization’s ability to move more quickly.”

One balm in easing AI fears has been introducing comprehensive upskilling training to workers, Martin said. Workers who feel more empowered are more likely to share resources with others, making a company more nimble.

 “A sharing culture is incredibly important,” he said. “But it’s not natural for fearful employees.”

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Author
Sasha Rogelberg
By Sasha RogelbergReporter
LinkedIn iconTwitter icon

Sasha Rogelberg is a reporter and former editorial fellow on the news desk at Fortune, covering retail and the intersection of business and popular culture.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Future of Work

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
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Future of Work

John Collison, president and co-founder of Stripe
SuccessJobs
Stripe cofounder says Gen Z will need two college majors to compete thanks to AI—and investing legend Charlie Munger called it first
By Emma BurleighJune 26, 2026
3 hours ago
young woman looking frustrated while working on her laptop at home
SuccessCareers
Gen Z’s hiring hell is real: 1 in 3 employers admit they’re replacing entry-level roles with AI—and tech and manufacturing jobs are most at risk
By Preston ForeJune 26, 2026
3 hours ago
cuban
AIJobs
Everyone agrees that you hate AI, but only Mark Cuban sees why Silicon Valley is powerless to fix it
By Nick LichtenbergJune 26, 2026
11 hours ago
g
AIunemployment
One of the Democratic Party’s brightest stars is co-founding a group to help with the coming AI jobs earthquake
By Josh Boak and The Associated PressJune 25, 2026
20 hours ago
ken
Future of Workphilanthropy
Ken Griffin celebrates America’s 250th birthday with $26 million gift for new Roosevelt Library built into the Badlands
By Nick LichtenbergJune 25, 2026
21 hours ago
TIAA CEO Thasunda Brown Ducket
SuccessFortune 500: Titans and Disruptors of Industry
TIAA’s CEO made $26,000 in her first job but still maxed out her 401(k). She has advice for Gen Z
By Emma BurleighJune 25, 2026
1 day ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
1 day ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
2 days ago
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
Economy
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
By Nick LichtenbergJune 26, 2026
11 hours ago
The bond market knows something about the $39 trillion national debt that Washington doesn’t
Economy
The bond market knows something about the $39 trillion national debt that Washington doesn’t
By Eva RoytburgJune 25, 2026
20 hours ago
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
Economy
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
By Tristan BoveJune 25, 2026
21 hours ago
Current price of oil as of June 25, 2026
Personal Finance
Current price of oil as of June 25, 2026
By Joseph HostetlerJune 25, 2026
1 day 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.