Beyond AI Optimism

Five ways to move your business from saving time to sparking innovation

Welcome letter from Google

We’re living through one of the most exciting shifts in how work gets done. In just a few short years, AI has moved from the margins of possibility to the center of how people ideate, create, and collaborate. It’s changing how teams think, make decisions, and drive progress, opening doors to new ways of working that were once out of reach. But as you’ll see in this report, only a small fraction of companies (about 3%) have truly transformed with AI.
To better understand the promise and reality of AI at work, we partnered with Hypothesis Group, an insights and strategy agency, on a global research study spanning six markets and more than 2,500 leaders and knowledge workers (referred to as employees) from organizations that have started on their AI journey.
The result shines a light on the state of AI transformation today, and while that story is unfolding, several themes are emerging:
Executive optimism outpaces reality on the ground. Although employees are all-in on AI, they’re often held back by a lack of a top-down strategy, robust training, and a clear AI roadmap. Meanwhile, executives are much more likely than employees to say AI has already had a significant impact on their business.
Time savings are the fuel, not the finish line. Almost every company that has deployed AI is seeing measurable value in time savings and productivity, but the bigger, more strategic prize is innovation. Driving real impact with AI isn’t merely about writing emails or documents faster; it’s about inventing and shipping better products and services faster.
Real change is possible. With the right tools and approaches to AI, organizations in every industry can fundamentally transform how they work, helping employees boost creativity, focus on work that matters, and accelerate the pipeline from idea to market.
At Google, we believe AI should make work easier and more impactful, not more complicated. That’s why tools like Google Workspace with Gemini and our newly released Gemini Enterprise bring together enterprise-grade capabilities with the familiar tools people use every day, built to be intuitive, helpful, and simple to adopt. And as the research shows, when AI is built into productivity and collaboration tools, organizations see stronger outcomes in both quality of work and faster transformation overall. Our goal is to help every employee do their best work and create more value in the places they’re already working.
We’re excited for you to explore what we’ve learned and to continue the conversation about how we can partner with you to shape the next chapter of work — together.

Derek Snyder

Director of Product Marketing, Google Workspace

Introduction

As organizations race to adopt AI, there’s a clear gap between aspiration and achievement. While many leaders say AI has already made a significant impact at their companies, employees often experience it as experimental and fragmented. Overcoming this disconnect is foundational to transforming work with AI.

To better understand how organizations can move from AI experimentation to transformation, we partnered with Hypothesis Group to conduct a global, multi-phase study of more than 2,500 business decision-makers and knowledge workers (referred to as employees) from mid-market and enterprise organizations (300+ employees) spanning different geographies (US, UK, India, Japan, Brazil, and France), industries, and roles within the organization. All of the organizations we surveyed already have some level of AI deployment in place. See the full methodology for details (page 20).

To complement these findings, we also spoke with three AI experts about how they're seeing organizations transform with AI:

Nirit Cohen Future of work strategist & keynote speaker

Associate Director at Leverhulme Centre for the Future of Intelligence, Senior Research Associate at the University of Cambridge, AI Ethics and Cognitive Science specialist

Key Findings

The AI Disconnect

Why is there a gap between executive optimism and employee reality when it comes to AI transformation?

Executives are bullish on AI’s potential, seeing it as a cornerstone of transformation and growth. They’re confident in both their ability to adopt it and its long-term strategic value. They say it has already had a big impact on their company. Employees tell a different story: despite most using AI daily and saying it’s essential for their careers, their perception of existing AI impact and prospects lags significantly behind their leadership.

COMPARED TO EMPLOYEES Executives are more likely to say... AI has had a significant positive impact on their company 53% 36% +17pp They are confident their organization can effectively adopt AI 54% 39% +15pp AI is a top strategic priority 41% 30% +11pp AI is changing core business models 35% 24%

Man looking intently at a computer screen with a pen in hand

While most of the knowledge workers we surveyed have embraced AI as a daily habit and know its importance for the future of work, they feel their organizations don't prioritize it enough, with 84% wanting their company to focus more on AI.

Among the knowledge workers we surveyed 61% use AI daily 71% say learning how to use AI at work will be essential for future career success 48% say that AI has a significant impact on their work

84% of employees we surveyed say they want their organizations to focus more on AI

As a result, many employees aren’t feeling the same bullish optimism expressed by executives.

COMPARED TO EXECUTIVES Employees are less likely to say... Confident with AI 58% 67% -9pp Truly empowered by AI 13% 29% -16pp Prepared to adapt to AI 32% 48% -16pp Confident in their company’s ability to adopt AI 39% 54% -15pp

The image is a page from a report, titled "Beyond AI Optimism Dec 2025," featuring a key statistic, a "TAKEAWAY," and two expert quotes alongside a photo. The key statistic, highlighted at the top, states: "Only 29% of employees say that AI is broadly advocated across their organizations." The section labeled **TAKEAWAY** reads: "To unlock AI's full potential for impact, leaders must bring employees into the process and empower them to participate in transformational change. Organizations that pair vision with practical support build momentum and create the conditions for true transformation." Below this, there are two quotes: 1. **Nirit Cohen, Future of Work Strategist**, says: "We need to communicate in a way that brings people along because some people are scared. They need to know that if AI helps them become 50% more productive, it won't simply result in 50% more work." 2. **Dr. Terri Horton, AI Strategy & Workforce Transformation Consultant**, says: "Employees are less likely to fear AI when they understand the organization's overarching AI vision and strategy, are upskilled in human + AI collaboration, and have a voice in implementation and responsible use practices. When employees understand and participate in this way, it creates psychological safety, protects identity, and signals that they have a meaningful place in the organization's future." A photo in the lower-left corner shows a blonde woman, presumably a business professional, smiling slightly while looking upward and resting her chin on her hand, with a laptop and coffee cup nearby, suggesting an office or library setting.

Meet the fully transformed

We looked at companies with higher levels of transformation versus those in initial stages. What can we learn from the 3% who have truly transformed?

Spectrum style graph showing the percentage breakdown of where comapnies are in their AI transformation process Initial 27% Scaling 18% Advanced 7% Exploring 45% Highly Transformed 3%

Transformation doesn’t follow a single path; it evolves along a spectrum. And while every organization’s journey is distinct, clear patterns emerge in the breadth and depth of use, separating transformed organizations from those still getting started.

By defining transformation through both the number of AI use cases and the number of departments using AI across an organization, we identified five levels of transformation. Each level reflects clear differences in how organizations perceive, strategize, and realize outcomes with AI. You can think of progressing through the bands on this spectrum as moving along an AI maturity index.

Those at the top of the transformation ladder provide some clear best practices and lessons learned that all organizations can benefit from. Meanwhile, nearly three-quarters of organizations are still early in their journey, focused on encouraging adoption and advocacy, anchoring AI in their culture, and selecting the right AI tools to accelerate progress.

The image is a bar chart comparing AI adoption and advocacy differences across five stages of organizational AI transformation: Initial (red), Exploring (blue), Scaling (yellow), Advanced (green), and Highly Transformed (purple). The accompanying text states that organizations at the top of the transformation ladder offer best practices, while nearly three-quarters of organizations are still early in their journey, focusing on encouraging adoption and advocacy, anchoring AI in their culture, and selecting the right AI tools. The chart displays data for four metrics: 1. **AI is broadly advocated across the organization:** * Initial: 14% * Exploring: 22% * Scaling: 40% * Advanced: 57% * Highly Transformed: 65% 2. **AI is widely adopted across multiple roles and departments:** * Initial: 24% * Exploring: 31% * Scaling: 49% * Advanced: 60% * Highly Transformed: 77% 3. **AI is fully anchored in our culture (i.e., make AI a part of existing company/team cultural norms):** * Initial: 31% * Exploring: 32% * Scaling: 42% * Advanced: 49% * Highly Transformed: 50% 4. **I'm uncertain of the best AI tools to use for my work:** (Note: The order of the percentages shown on the chart for this question, based on the colors, appears to be reversed from the other metrics, with the highest uncertainty among those in the early stages.) * Initial: 49% * Exploring: 36% * Scaling: 12% * Advanced: 10% * Highly Transformed: 4%

The image presents data visualizations illustrating how highly transformed organizations experience more significant AI outcomes and benefits, which in turn boosts employee confidence in AI adoption. The stages of transformation are color-coded: Initial (red), Exploring (blue), Scaling (yellow), Advanced (green), and Highly Transformed (purple). The first section, **AI Outcomes: AI adoption has...**, shows the percentage of organizations at each stage reporting specific results: 1. **Driven business growth (e.g., generate new products, services, or revenue streams):** * Initial: 18% * Exploring: 30% * Scaling: 43% * Advanced: 53% * Highly Transformed: 78% 2. **Had a significant positive impact on the overall company:** * Initial: 35% * Exploring: 37% * Scaling: 41% * Advanced: 67% * Highly Transformed: 78% 3. **Helped improve business processes/continuity:** * Initial: 39% * Exploring: 35% * Scaling: 53% * Advanced: 63% * Highly Transformed: 63% The second section, **AI Perceptions: With AI, I...**, shows employee confidence and belief levels: 1. **Believe AI can make work more meaningful and impactful:** * Initial: 30% * Exploring: 40% * Scaling: 54% * Advanced: 68% * Highly Transformed: 69% 2. **Feel confident that company can effectively adopt AI:** * Initial: 32% * Exploring: 37% * Scaling: 54% * Advanced: 58% * Highly Transformed: 58% The bottom of the image features a photograph of four business professionals around a table, looking at a laptop, along with a note box stating: "The remainder of this paper highlights the impact of AI among highly transformed organizations, including examples from real Google Workspace with Gemini customers."

From Saving Time to Expanding Potential

Highly transformed organizations are going from saving time to sparking innovation and creativity.

The image is a page from a report detailing how highly transformed organizations leverage AI to accelerate business and focus on meaningful work, compared to organizations in the initial stages of transformation. In terms of accelerating business, a chart shows that **61%** of highly transformed organizations report that AI accelerates the development of new products or services, compared to only **27%** in initial-stage organizations. Regarding focusing on meaningful work, a chart illustrates that **59%** of individuals in highly transformed organizations are able to spend more time on work they care about, compared to **30%** in initial-stage organizations. A quote from Henry Shevlin, Senior Research Associate at the University of Cambridge, states: "AI can be a win-win for both management and individual contributors. It's a way to make work more meaningful, more satisfying with less busy work and drudgery." The document also includes a case study on **Equifax**, a global credit bureau that adopted Workspace with Gemini. After a trial, 90% of users saw an increase in work quality and quantity. JK Krug, VP of Digital Employee Experience at Equifax, is quoted as saying: "Almost every business unit saved over an hour per day, which gives our employees time to work on other important initiatives."

The image is a page from a report discussing how AI benefits employees, leading to an investment in employee happiness. The section **COMPARED TO INITIAL STAGE ORGANIZATIONS** shows that highly transformed organizations report clear personal benefits: - **Greater confidence in their output:** 63% report this, a +36 percentage point difference compared to 27% in initial stage organizations. - **Stronger career development opportunities:** 61% report this, a +31 percentage point difference compared to 30%. - **Increased employee engagement:** 54% report this, a +28 percentage point difference compared to 26%. - **Increased employee satisfaction:** 57% report this, a +25 percentage point difference compared to 32%. A quote from **Renata Marques, CIO at Natura**, states: "The future of work will be defined by people automating monotonous, operational tasks, so they can focus on analyzing information. With Google Workspace with Gemini, we're seeing this change in real time." The quote is accompanied by a photo of Marques. A large photograph at the bottom of the page shows a smiling woman pointing to something on a laptop screen while collaborating with a man who is also smiling and looking at the screen.

The image is a page from a report discussing the long-term benefits of AI transformation, titled "Beyond\_AI\_Optimism\_Dec\_2025\_15.jpg." The **TAKEAWAY** section explains that because employees feel supported by AI, highly transformed organizations see boosts in innovation and creativity, as well as fundamental shifts leading to stronger ROI, faster and more collaborative work, and a competitive advantage. A quote from **Nirit Cohen, Future of Work Strategist,** states: "When organizations reach true transformation, we should see a 30–40 percent improvement in areas that previously weren't possible — whether that's input-to-output efficiency, growth, or productivity." A chart compares highly transformed organizations to initial-stage organizations on four key downstream metrics: - **AI has improved company ROI:** 52% of highly transformed organizations report this versus 27% of initial-stage organizations (+25 percentage points). - **They have increased collaboration and alignment:** 59% versus 28% (+31 percentage points). - **They are well-prepared for the future of work:** 74% versus 28% (+46 percentage points). - **AI gives their company a competitive advantage:** 61% versus 26% (+35 percentage points). A photograph at the bottom right shows a group of four people around a conference table, with one man speaking animatedly.

Five steps to AI Transformation

Transforming with AI shouldn't be a code only a few elite organizations can crack. Regardless of your AI maturity, adopting these best practices can help accelerate your organization's transformation.

The image outlines the first two of **5 Steps to AI Transformation**, emphasizing that transformation is achievable for all organizations. **Step 1: Transparent "always on" strategy & roadmap** This involves clarifying how AI fits into broader organizational goals and how the strategy will evolve. A quote from **Henry Shevlin, Senior Research Associate at the University of Cambridge**, advises: "Having good cross-organization communication is a key to success. Instead of AI use case 'hoarding,' create internal incentives for individuals to say, 'We can make this process more efficient, here's how it fits in my workflow, and how others can do the same.'" Proof points (comparing highly transformed companies vs. initial stages) show that highly transformed companies are more likely to: * Continuously refine AI frameworks to optimize workflows over time (74%, +39 percentage points). * Define a transformation roadmap that includes key gaps, milestones, and timetables (52%, +19 percentage points). * Define proof points and metrics (59%, +16 percentage points). **Step 2: Authentic AI** This step focuses on embedding AI in the company culture and empowering employees with confidence. Proof points show that highly transformed companies are more likely to: * Foster a modern, flexible work environment (74%, +46 percentage points). * Align AI adoption with the needs of teams & end users before rolling out new tools (72%, +36 percentage points). * Anchor AI in their culture (50%, +19 percentage points). A photograph accompanies Step 2, showing a smiling woman looking at a laptop screen in a modern office setting.

The image outlines the third and fourth steps in the **5 Steps to AI Transformation**. **Step 3: Identify & prioritize quick wins** This step advises focusing on well-defined use cases that demonstrate value across teams and roles. Dr. Terri Horton, AI Strategy & Workforce Transformation Consultant, is quoted: "When implementing AI strategy, it is critical to foster a culture of creativity and experimentation, where employees across functions and roles feel empowered to explore and surface high-value use cases and success is measured by consistency, quality, impact, and scalability." The section includes a case study from **BBVA**, with Collaboration Architect Jose Antonio Salmerón stating that their pilot found quick wins for employees using Gemini easily in Gmail, Drive, and Meet, leading them to believe it will be useful from the first day of full implementation. Proof points comparing highly transformed companies (vs. initial stages) show they are more likely to: * Adopt AI widely across multiple roles and departments (72%, +48pp). * Use AI for numerous and diverse types of tasks (70%, +46pp). * Support continuous AI learning and development among employees (70%, +37pp). **Step 4: Democratize advocacy** This step emphasizes scaling transformation by extending advocacy beyond the AI team. The **TAKEAWAY** is that leaders must ensure AI is accessible to all employees to unlock the full potential of the organization. The section cites **Google**'s report, *The ROI of AI*, showing that 78% of executives from organizations with C-level sponsorship report seeing ROI on at least one GenAI use case. Nirit Cohen, Future of Work Strategist, states she has seen successful organizations that empower area leaders to distribute knowledge beyond their "zone of influence." Proof points comparing highly transformed companies (vs. initial stages) show they are more likely to: * Have company-wide AI advocates (65%, +52pp). * Say executives are considered among the biggest advocates (77%, +46pp). * Have more AI usage among employees overall (39%, +8pp).

The image outlines the fifth and final step in the AI transformation process: **Embrace new ways of working & new tools.** The text emphasizes that transformation requires investment in technology, communications, training, and incentives to make AI part of everyday work, and that integrating the right tools into the workstream is critical. The **TAKEAWAY** states that not all AI tools are created equal; when AI is built into productivity and collaboration (P\&C) tools, organizations see stronger outcomes, such as improved quality of work (+33 percentage points) and faster transformation overall (+27 percentage points). Furthermore, 96% of highly transformed organizations believe changing tools can be a catalyst for successful AI transformation. A case study features **Gordon Food Service**, with Chief Information Officer Brendan Bonthuis quoted as saying: "Google Workspace is a game changer for our general workforce because it integrates AI directly into their daily workflow, making our processes better and our people more effective in serving customers with the highest quality products and services." A table provides **Proof points of highly transformed companies (vs. initial stages)**: | Metric | Highly Transformed % or Amount | Difference vs. Initial Stages | | :----------------------------------------------------------------------------------------------------- | :----------------------------- | :---------------------------- | | Higher annual budget for AI | $686K | \+$483K | | More likely to have $1–$5M annual budget for AI | 26% | \+11pp | | Invest in communications, training, and rewards pre-launch and post-launch | 61% | \+25pp | | Believe AI must be integrated into P\&C tools to improve quality of work and accelerate transformation | 76%; 59% | \+33pp; +27pp | | Say it's important to have AI fully integrated within existing tools/apps | 67% | \+18pp | | Say changing tools can be a catalyst for AI transformation | 96% | \+15pp | A large graphic at the bottom highlights the finding: **+33pp Improved quality of work when AI is built into P\&C tools.** The image also features a photograph of three people collaborating while looking at a tablet.