Skip to main content

How Generative AI Is Reshaping Work in 2025

Image of professionals in a meeting using AI.

Artificial intelligence has moved from experimental pilot projects into the daily operations of U.S. businesses. As organizations expand their use of generative AI, the conversation has shifted from speculation to measurable outcomes. Employers are weighing how these tools affect productivity, while employees are learning how to integrate them into their routines.

AI in the workplace is more than just automating routine tasks. It is reshaping decision-making, workflows and in-demand skills. The impact of AI is visible in everything from how companies allocate work to how workers manage their time. While some see risks in job displacement, others highlight new opportunities that come with adapting to these technologies.

The future of work will depend on how well businesses, workers and policymakers respond to these shifts. Emerging trends show that new technologies are less about replacing entire jobs and more about changing the mix of tasks within them. This report combines data from various sources to examine where generative AI is being used most, how much time it is saving and which jobs are projected to grow as the technology continues to spread.

Key Takeaways

  • As of 2025, about one in five U.S. companies have integrated AI into their operations.
  • About two in five U.S. workers are using AI in their jobs in 2025.
  • Generative AI users report saving an average of 5.4% of their work hours each week, about 2.2 hours in a 40-hour workweek.
  • Computer occupations are projected to grow nearly three times faster than the overall job market (11.7% vs. 4.0%).
  • BLS projects nearly 900,000 new jobs in AI-adaptive computer roles by 2033, led by software developers.

Which Sectors Are Leading in AI Adoption?

AI adoption is spreading unevenly across industries, with certain sectors leading the way. Understanding these differences helps explain how organizations are prioritizing AI integration and where the most significant gains are likely to emerge.

Infographic showing AI adoption and sector trends

As reported by the Federal Reserve, about one in five U.S. companies have adopted some use of AI, with two in five American workers using the technology in their jobs. A recent National Bureau of Economic Research (NBER) report detailed how adoption rates vary widely by sector. For example, in the information industry, 18% of firms already use AI, and this rises to 22% when measured as a share of workers.

By contrast, only about 1.9% of workers in construction and mining firms use AI. Expectations for the next 1-3 years reflect similar divides, with information projected to reach 25% of workers in AI-enabled firms compared to just 3.2% in construction.

The NBER report also explored how firm size affects AI integration in the workplace. In the chart below, current AI use refers to the share of firms already using AI at the time of the survey, while expected use captures those anticipating adoption within the next 1-3 years. Because the data was firm-weighted, each company counted equally regardless of how many people it employed.

Infographic showing current and expected AI use by firm size

Larger companies with 250 or more employees reported adoption rates of about 9%, with expectations rising to over 11%. Very small firms with only 1-4 workers reported just above 5% current usage, though many still anticipate growth in the near term. This suggests that business leaders at larger firms are more likely to commit resources to AI initiatives early, while smaller firms may lag until solutions become easier to implement.

The organizational impact of AI is especially visible in human resources. According to the Society for Human Resource Management (SHRM), HR professionals are increasingly adopting AI for recruiting, training and employee management. Companies are also testing ways to apply these tools to strengthen engagement and retention, helping streamline processes while freeing HR staff to focus on more strategic work. These developments suggest that while adoption is strongest in technology-heavy industries and large firms, the use of AI is steadily spreading across the broader economy.

How Much Time Does AI Really Save Workers?

One of the clearest measures of the benefits of AI is time saved. Generative AI tools are helping employees streamline workflows, reduce repetitive tasks and focus more on decision-making that adds value. The scale of these gains depends on how often workers use AI and which types of tasks are being optimized.

According to the Real-Time Population Survey data shared by the Federal Reserve Bank of St. Louis, the most common workplace uses of generative AI were writing communications (57%) and searching for information (49%). When asked which tasks AI was most helpful for, the answers were spread out rather than concentrated in one area, suggesting workers see value in the technology across many different parts of their jobs.

The Federal Reserve Bank of St. Louis also reported that workers who used generative AI save an average of 5.4% of their hours each workweek, or about 2.2 hours in a 40-hour schedule. When those savings are averaged across the entire workforce, including employees who do not use AI, the reduction amounts to 1.4% of total hours worked. Based on these figures, the study estimated a 1.1% increase in overall productivity, which equals a 33% productivity gain for each hour a worker spent using generative AI.

The bank’s survey also asked respondents how much longer their weekly work would have taken to complete without AI use. Their answers showed significant variation: 20.5% said they saved four hours or more in the previous week, 20.1% reported saving three hours, 26.4% saved two hours and 33% saved an hour or less. Frequency of use made a clear difference. Among employees who used AI every day, 33.5% reported saving four hours or more, compared to 11.5% of those who only used it once in the week.

Infographic showing time saved by frequency of generative AI use in a workweek

The productivity impact of AI tools is not evenly distributed across the workforce. Workers in computer and math occupations reported the highest intensity of AI use, with about 12% of their hours AI-assisted, leading to a 2.5% reduction in task time. Personal service workers, on the other hand, used AI for just 1.3% of their hours, saving only 0.4%.

At the industry level, information services recorded the largest share of AI-supported work at 14%, with a 2.6% productivity boost. Leisure and hospitality trailed far behind, with only 2.3% of hours AI-assisted and 0.6% of time saved. These findings underline a clear divide. Knowledge-based, digital-first industries are capturing the strongest benefits, while hands-on, people-centric sectors see limited gains.

For employees, AI tools are increasingly used to handle data entry, streamline routine tasks, and optimize workflows with the help of bots and generative models. Beyond efficiency, these changes can enhance employee experience and well-being by reducing repetitive tasks and freeing up time for more valuable work.

The Future of Work: Jobs Growing in the AI Era

The rise of generative AI is reshaping the labor market in gradual but significant ways. Instead of triggering immediate job loss, automation is shifting the tasks within occupations and fueling growth in roles that adapt AI technologies. Forecasts from the U.S. Bureau of Labor Statistics (BLS) suggest that the next decade will be defined less by disruption and more by steady changes in how work is organized and valued.

BLS projections show that computer occupations are on track to grow nearly three times faster than the overall labor market, with 11.7% growth compared with 4.0% across all jobs. Software developers and other computer-related roles are expected to add almost 600,000 positions by 2033, reflecting how demand for AI-powered solutions continues to outpace efficiency gains from the technology itself. Even in areas heavily exposed to automation, such as programming or financial analysis, most jobs are forecasted to expand as AI integration creates new functions rather than erasing roles.

Legal professions illustrate uneven effects, as paralegals and legal assistants are projected to grow only 1.2% through 2033 as algorithms take on document review, while lawyers are expected to grow 5.2% since client trust and judgment cannot be replaced. Insurance claims adjusters and auto damage appraisers, by contrast, are projected to decline by 4.4% and 9.2% respectively, as AI-driven tools and robotics streamline inspections and generate faster payout estimates. Engineering occupations, including civil, aerospace and electrical engineers, are projected to grow steadily at 6-9%, since regulatory oversight and technical expertise limit full automation.

The financial sector also shows sharp contrasts. Credit analysts face a projected 3.9% decline as machine learning and datasets allow AI systems to quickly produce credit scores and risk reports. Personal financial advisors, however, are projected to grow by 17.1%, with demand driven by clients who value human guidance and customer experience. Healthcare is another field expected to see growth as AI supports diagnosis and forecasting but cannot replace the interpersonal and technical skills required of clinicians.

Technology-specific roles are forecasted for some of the fastest growth. Software developers (+17.9%) and database architects (+10.8%) will add hundreds of thousands of jobs, while emerging positions around things like cybersecurity and ChatGPT-like GenAI applications will expand as businesses build AI infrastructure. These roles reflect how employers are emphasizing upskilling to keep pace with new technologies.

The Federal Reserve Bank of Dallas reinforces this outlook, noting that research shows little evidence of widespread job loss from AI so far. Instead, task allocation is shifting. High-skill roles are seeing stronger demand, while low-skill roles face moderate pressure. Taken together, the evidence suggests that AI will not replace work wholesale but will continue to reshape it, creating growth opportunities where workers and organizations adapt.

The Rise of AI in the Workplace

AI technologies are moving beyond pilot programs and into everyday business practices. While adoption levels differ by industry, the broader trend shows steady growth as more organizations choose to use AI. Productivity gains are coming from reshaping tasks and workflows rather than eliminating entire jobs, and these changes are altering how employees work and where companies invest.

Businesses are also discovering practical use cases, from streamlining data entry to improving customer service. These examples demonstrate how advancements in generative AI are opening new possibilities while pushing employers to prioritize upskilling and long-term workforce planning. The future of work is unfolding through gradual adaptation, and organizations that adopt AI responsibly will be best positioned to capture its benefits.

Methodology

This report, conducted on behalf of Youngstown State University, draws on a combination of nationally representative surveys, government projections, and academic research to assess how generative AI is affecting U.S. work today and how it could in the future. The study connects current adoption and productivity effects with future occupational growth and sector-level impacts using the following sources:

  • Louis Fed, “Impact of Generative AI on Work Productivity” (Feb 2025): Worker-level adoption, intensity of use and time-savings estimates
  • Louis Fed, “Rapid Adoption of Generative AI” (Sept 2024): Early survey evidence on adoption trends
  • NBER Working Paper W32319: Analysis of firm-level adoption patterns and expectations using the Census Bureau’s BTOS
  • BLS, Monthly Labor Review (Feb 2025): Incorporation of AI impacts into 2023-33 employment projections
  • Federal Reserve Board, FEDS Note (Feb 2025): Methodological guidance on measuring AI uptake in the workplace
  • Dallas Fed, Economics Research Brief (June 2025): Labor market context and AI’s potential macroeconomic effects

About Youngstown State University

Youngstown State University offers flexible online Master of Science in Education (M.S.Ed.) programs designed to support working professionals who want to advance their careers in teaching and educational leadership. The programs provide practical coursework, expert faculty guidance and curricula focused on building education strategies and skills that can be applied immediately in the classroom. By completing an M.S.Ed. online program from YSU, educators can balance work and study while preparing for leadership roles in schools and districts.

Fair Use Statement

This article includes data and findings from sources such as the Federal Reserve Banks, BLS and NBER. These references are provided for educational and informational purposes to illustrate the current and projected impact of generative AI on the U.S. workforce. If you wish to use or share this content, please provide proper attribution and a link to this page.

Related Articles

skyline