AI’s Impact on the Workplace in 2025: 2nd Annual Survey of American Managers

AI continues to transform the workplace—but what was once disruptive in 2023 has become more mainstream in 2025. As people continue to explore the vast capabilities of the technology, there’s an undeniable shift in managers' attitudes on the impact it has on the workplace.

At Beautiful.ai, we empower teams with AI-driven tools to enhance productivity and streamline workflows. As AI adoption continues to evolve, we set out to better understand how managers are integrating these tools, the challenges they face, and their expectations for the future. We interviewed 3,000 managers in our second annual AI’s Impact on the Workplace survey to learn how they’re continuing to integrate this technology into their businesses in 2025.

Companies that successfully utilize AI tools are not just cutting costs—they’re unlocking new opportunities for growth, collaboration, and scalability. But what are the ramifications of adopting the technology? Our findings provide managers with valuable takeaways on how to navigate AI’s emerging role in business, from balancing efficiency with employee concerns to leveraging AI as a strategic asset.

Summary of Key Findings

• 15% more managers (54%) do not want to replace employees with AI tools compared to last year.
• 17% less managers (30%) said it would be financially beneficial if they could replace a large number of employees with AI tools compared to 2024.
• 20% more managers (63%) said they do not believe multiple employees that they currently manage could be replaced by AI tools and the team would operate well without them. 
• 77% of managers said they are adopting AI tools in the workplace to either enhance worker productivity or improve efficiency, an 11% increase from 2024.
• 65% of managers said their biggest concern about AI in the workplace is either employee resistance to AI resulting in unhappy workers or the fear of the unknown when it comes to AI tools at work.
• 64% of managers said that their employees fear that AI tools will make them less valuable at work in 2025.
• 58% of managers said they agree that their employees fear that AI tools will eventually cost them their jobs.
• 44% of managers said they are fearful that AI tools in the workplace will result in lower pay for workers in management positions, while 23% were undecided on this issue.  
• The majority of managers, 64%, equate AI outputs with the outputs of a “novice manager,” a 28% increase from 2024. 
• 59% of managers said they agree or are undecided, but do not disagree, on whether they view AI as an opportunity to lower salaries of employees because less human-powered work is needed.
• 41% of managers said they believe AI tools are a threat to their pay and will fuel wage declines across the country in 2025. 
• 57% of managers said they are using AI tools to help them manage employees on either a daily or weekly basis in 2025. Still, daily use of AI tools have decreased by 14% from the previous year. 
• 45% of managers said they believe the new administration's approach to AI regulation will encourage AI use in the workplace in 2025.

Does AI still pose a risk to job security in 2025?

One of the biggest concerns that followed the AI boom was job security, and whether the technology was savvy enough to replace human work. As managers have familiarized themselves with AI, there’s less of a focus on downsizing and replacing employees with AI tools, and instead an opportunity to enhance the work they’re already doing. Of those surveyed, 77% of managers said the primary reason they’re adopting AI in the workplace is to either enhance worker productivity or improve efficiency, an 11% increase from last year. 

As AI becomes more common, managers appear to be more hesitant around the idea of replacing workers or critical functions with AI entirely. Only 23% agree with the idea that replacing workers with AI is a good thing for their company— an 18% decrease from 2024. 

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The notion that team members are replaceable by AI now gives managers pause as they explore the capabilities of the tools. In 2024, nearly half of those surveyed agreed that it would be financially beneficial for their company to replace a large number of workers with AI, a number that has drastically decreased by 17% in 2025. In fact, the majority of managers said they do not believe the employees that they currently manage could be replaced by AI tools. 

While the unemployment rate is still cause for concern, professionals should feel less threatened by AI tools eliminating their role. 

Lingering concerns 2 years after the AI boom

Even 2 years after the debut of generative AI, managers are still navigating concerns of the new technology and how it will impact their job. Questions around employee adoption, resistance to AI, fear of the unknown, the integrity of AI and pay cuts are at the top of the list. Most managers agree that their biggest concern about AI in the workplace is either employee resistance to AI resulting in unhappy workers or the fear of the unknown when it comes to AI tools at work.

Even more, 64% of managers believe that their employees fear that AI tools will make them less valuable at work in 2025. And over half agree that their employees fear that AI tools will eventually cost them their jobs. 

Will these lingering concerns have the reverse effect on professionals? Employers may see an onset of quiet-quitting as employees feel devalued, and unmotivated to go above and beyond in their role. It’s important for managers to reassure employees of their contributions to the team to help alleviate some of the worry. 

AI tools continue to address inefficiencies and enhance productivity

Managers may be reassessing the capabilities of AI-driven tools in 2025. Only 7% described AI outputs as better than results delivered by human managers, a 15% decrease from 2024. Rather than viewing the technology as interchangeable with employees, the shift presents the technology as a collaborative partner instead. 

Half of those surveyed agree that they foresee AI tools replacing elements of their job functions, but in a positive and productive light, not a threatening one. AI-powered tools, like Beautiful.ai, can help professionals automate the more tedious tasks on their desk— giving them valuable time back for other impactful projects. Leveraging AI tools helps expedite the brainstorming process, allowing professionals to get from idea to impact faster than ever. 

As the novelty of AI dies down, daily usage of the tools has reduced to 18% of managers in 2025, a 14% decrease from the previous year. However, this isn’t to say that the value of AI has decreased. As people make space for AI in their workflow, they may be more intentional about how and when they’re using the tools. Instead of trying to force the use of AI on a daily basis simply because it’s available, professionals are seeking the most beneficial ways to leverage the productivity tools for their workload. 

Does automation in the workplace equate to salary cuts?

Though we’ve seen a significant decrease in the likelihood of AI disrupting the job security of American workers, there is still a lot of uncertainty around the impact of the technology. 

Over half of those surveyed said they agree or are undecided, but do not disagree, that AI is an opportunity to lower the salaries of employees because less human-powered work is needed. Similarly, over 40% of managers said they believe AI tools are a threat to their pay and will fuel wage declines across the country in 2025. Both of these statistics have decreased from 2024, further proving that AI is less of a threat to professionals the more widely adopted it becomes. 

Despite managers becoming less worried about paycuts, smaller teams may find that they have less budget allocated to the headcount of their department, and instead more access to productivity tools to fill those gaps.  

AI & government regulation

AI is constantly changing, as are the guidelines and regulations. Specifically under the new administration, companies are pivoting their approach both as businesses and consumers. Just two months after the inauguration, 45% of managers said they believe the new administration's approach to AI regulation will encourage AI use in the workplace in 2025.

The future of AI is poised for significant policy shifts and advancements. Key areas of focus may include ethical AI development, job displacement concerns, and innovation incentives to maintain global competitiveness. Yet, only 20% of managers feel confident that the new administration will implement AI regulations that balance innovation and risk mitigation. 

Striking a balance between fostering technological progress and implementing safeguards will be crucial. As businesses and workers adapt, the administration’s stance on AI governance will determine how seamlessly the technology continues to integrate into the workplace in 2025 and beyond. 

AI’s impact on the workplace

AI has moved from disruption to integration in the workplace, becoming a core part of daily operations in 2025. While many managers still have concerns about job security, pay cuts, and employee resistance, fewer are viewing AI as a direct replacement for workers. Instead, companies are using AI to enhance productivity, streamline tasks, and foster collaboration. 

The 2025 survey results show a decline in support for replacing employees with AI, with more managers seeing it as a tool to complement human work rather than replace it. Despite lingering fears, businesses are finding ways to implement AI strategically, focusing on efficiency rather than downsizing. Additionally, new government regulations may shape how AI continues to evolve in the workplace, with nearly half of managers believing the administration will encourage AI adoption. As AI becomes more integrated, companies will need to balance its benefits with employee concerns to ensure a smooth transition into the future of work.

Methodology

All data found within this report is derived from a survey by Beautiful.ai conducted online via survey platform Pollfish from March 7-18, 2025. In total, 3,000 adult Americans in management positions with experience using AI tools in the workplace were surveyed. All respondents were asked to answer all questions as truthfully as possible and to the best of their knowledge and abilities.