In today’s edition…

Some workers remain skeptical of AI’s role at the office. Younger and highly educated employees are leading adoption, while others struggle due to limited training and unclear use cases. Companies racing to implement AI face a severe talent shortage. Many are rethinking hiring strategies, investing in upskilling and offering premium salaries to secure expertise. The shift from traditional software to AI-driven agents is redefining how digital services operate, pushing businesses to rethink product models and user experiences. And in Extra Credit, a new Microsoft report showcases over 140 real-world applications of AI at work and why layoffs driven by AI automation may not be good for corporate health.

Let’s dive in. 👇

ONE // Workers Remain Skeptical of Corporate AI Push

Generative AI promises efficiency, creativity, and better work-life balance, but many employees remain unconvinced. Adoption varies by age, education, and industry. Knowledge workers and younger employees are more likely to use AI tools, while older and less-educated workers are slower to adopt. A lack of structured training leaves many unsure how AI fits into their daily workflows.

By The Numbers

• 48% of white-collar workers use AI daily, up from 31% last year, but only 25% have received formal training.

• 12% of U.S. workers under 30 use AI regularly, compared with 6% of those over 50.

• Among postgraduate workers, 13% use AI daily, but only 5% of those with a high school education or less do the same.

• 30% of AI users report improved creativity and work-life balance, while others feel AI simply increases workload expectations.

Why It Matters

AI integration is accelerating, but without clear guidance, many workers struggle to see its value. Companies investing in AI risk losing productivity gains if employees do not trust or understand the technology. Successful AI adoption depends on structured training and transparent communication about its role in augmenting, not replacing, human work.

What’s Next

Companies will move beyond experimentation, shifting from AI pilots to full-scale deployment. Expect a greater focus on integrating AI into daily workflows, with targeted training programs and clearer role-specific applications. Businesses that align AI adoption with employee needs and operational goals will set the pace for the next phase of workplace transformation.

The Bottom Line: AI adoption will continue to grow, but workforce buy-in will determine its real impact. Companies that fail to train and engage employees risk missing out on productivity gains.

Source: Financial Times [hybrid paywall]

TWO // Skills Crunch Threatens AI Revolution

As companies move AI from experimentation to full-scale deployment, the workforce is struggling to keep pace. Businesses across industries report severe shortages in AI talent, with hiring challenges slowing progress even as demand surges.

By The Numbers

• 99% of senior IT leaders say their company is deploying AI.

• 76% report severe AI talent shortages.

• Demand for AI skills increased fivefold between 2023 and 2024.

• AI engineers saw 12 to 20% salary increases last year, while other tech salaries rose just 1%.

• Three times more AI budgets are spent on technology than people, leaving companies without the skills to scale AI effectively.

The Details

• Rethinking Recruitment: Companies are expanding their search beyond traditional hiring channels, tapping into academic partnerships, AI meetups, and internal pipelines. Many prioritize adaptable software engineers and data scientists over specialized AI talent, training them in AI tools instead.

• Upskilling as a Strategy: With demand outpacing supply, 60% of firms are training existing employees. Booz Allen Hamilton, for instance, is upskilling 35,000 employees to bridge the gap. Accenture’s research found that organizations successfully delivering enterprise AI value scored 88% higher on workforce transformation efforts than those with limited impact.

• Paying for Expertise: AI engineers are commanding double-digit salary increases, with mid-level professionals seeing 20% pay jumps over the past year. Some firms rely on contract workers and consultants to fill gaps while scaling internal talent.

Why It Matters

The AI talent shortage goes beyond hiring engineers. Companies are preparing entire workforces to use AI effectively. Organizations already generating enterprise-level AI value are 4.5 times more likely to increase their AI investment in 2025. Without a clear workforce strategy, progress will stall.

What’s Next

Companies will integrate AI into mainstream job functions, extending AI literacy beyond tech teams. The next hiring challenge will involve professionals who can apply AI to business strategy and operations.

The Bottom Line: AI adoption is outpacing the workforce’s ability to keep up. Companies must develop a clear strategy for building AI-ready teams, balancing recruitment, training, and deployment to keep pace with demand.

Sources: CIO and Accenture [report]

THREE // From Apps to Agents: The End of Software as We Know It

AI is reshaping the software industry, shifting computing from app-based ecosystems to on-demand, AI-driven services. This transformation threatens traditional software marketplaces and redefines the balance of power in tech.

Why It Matters

AI is breaking the traditional software economy, shifting control from app stores to those who own foundation models, proprietary data, and industry-specific AI agents. As AI-native services replace standalone applications, companies built on app distribution and in-app purchases must rethink how they monetize and deliver software.

What’s Next

The shift from apps to AI-powered services will reshape software development. Developers will move toward AI-as-a-service models, creating modular AI agents that integrate directly into workflows instead of requiring standalone installations. The companies that adapt to this new framework will define the future of digital interaction.

The Bottom Line: The shift from apps to AI-driven agents is redefining how digital services operate. Companies that control AI models, data, and industry-specific solutions will shape the next era of computing. Software is moving toward modular, intelligent services that anticipate user needs and deliver seamless experiences. No more switching between apps or navigating cluttered interfaces. AI-driven agents will make today’s software experience feel as outdated as your Tesla Model S.

Source: Justin Westcott for VentureBeat

Extra Credit

For the overachievers: These are the stories that didn’t crack the top three but are too important to ignore—quick hits on what’s happening and why it matters.

AI in Action: Microsoft Showcases 140+ Real-World Use Cases

Key Takeaway: We don't usually feature vendor-produced content, but Microsoft's latest report offers a rare look at how AI is delivering measurable impact across industries, moving beyond casual experimentation to full-scale integration.

Why It Matters: Practical AI implementation examples remain scarce. Most discussions focus on either individual productivity tools or large-scale automation, offering little in between. This report bridges that gap, showcasing real-world use cases for companies looking to transition from experimentation to meaningful business outcomes.

Source: Microsoft

AI and the Illusion of Efficiency in Layoff

Key Takeaway:
Companies have historically used layoffs as a short-term cost-cutting tool, but AI is now automating jobs at an unprecedented scale, creating a new wave of workforce reductions. While AI promises efficiency, its unchecked deployment may replicate the same long-term pitfalls of traditional layoffs—low morale, loss of institutional knowledge, and diminished innovation capacity.

Why It Matters:
AI-driven workforce reductions may seem like a more data-driven alternative to traditional layoffs, but without strategic planning, they risk creating the same negative long-term outcomes. Companies that invest in AI without simultaneously reskilling their workforce may find themselves in the same cycle of reactive cuts, eroding their competitive advantage instead of strengthening it.

Source: The Hustle

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