AI is no longer a futuristic concept—it’s here, embedded in our daily workflows, shaping industries, and redefining how work gets done. Yet despite its transformative power, AI’s full strategic potential remains largely untapped. While many employees are using AI for routine and operational tasks, fewer are leveraging it for strategic planning and creative problem-solving. This gap represents a massive opportunity for businesses that prioritize AI fluency – ensuring employees understand and can effectively apply AI in their roles.
According to the 2025 State of Performance Enablement report, employees who frequently use AI report substantial benefits: 65% say it increases their speed, 49% say it improves quality, 48% say it enhances accuracy, and 46% say it boosts creativity. But there’s still room to grow—93% of AI users believe its full potential remains untapped.
The companies that embrace AI as a co-pilot for innovation—not just a tool for efficiency—will be the ones that stay ahead of the competition.
“Gaps are widening,” explains Cheryl Johnson, chief product and technology officer at Betterworks, “…between companies that still haven’t implemented AI tools and the early adopters who are forging ahead with experimentation and iterative learning.”
AI as an innovation multiplier
AI is already driving efficiency across organizations. Employees are using AI to draft emails, and analyze data, with nearly 70% of employees who use AI leveraging it for routine applications like these. About half use AI for operational work, such as software development and customer relationship management. However, beyond these mundane applications is a largely untapped higher order of use, one that has the potential to transform business strategy, fuel creative breakthroughs, and reshape industries.
The research shows that:
- 46% apply AI to strategic functions, like research and workforce planning—but only 22% use it for strategic decision-making.
- 38% leverage AI for creative tasks, including content creation and design.
AI’s role as a strategic assistant, idea generator, and researcher is still underdeveloped, representing a significant untapped opportunity. Companies that integrate AI into strategic planning and innovation processes will leap ahead of those that only use AI for automation.
“AI can liberate employees from repetitive tasks, enhance decision–making, exponentially boost productivity, and create space for strategic contributions,” says Doug Dennerline, CEO at Betterworks. “Achieving this requires prioritization, investment, communications, a shared vision across the organization, and a structure for embedding AI into the fabric of the organization. CEOs must lead with clarity and confidence, with HR as a strategic partner, to ensure that AI becomes… a catalyst for enlarging the boundaries of what’s possible.”
AI and the acceleration of innovation
AI is accelerating the pace of innovation across industries. According to PwC’s 2024 Cloud and AI Business Survey, 67% of top-performing companies are already realizing value from generative AI in product and service innovation. This aligns with a larger trend: AI innovation acceleration has been on steroids since 2020 as AI capabilities have rapidly evolved. To better understand the impact, check out the interactive graph in PwC’s article, Competing in the age of AI.
And the future promises more of the same. As PwC puts it: “During this period of disruption, tech innovation will reign supreme. Management teams capable of creatively disrupting themselves with highly effective, intelligent offerings are positioned to win in increasingly competitive markets. … It’s not uncommon for a company to have hundreds of AI-enabled use cases that are creating new savings, insights, and differentiators.
“Be intentional about making AI an intrinsic part of your business, a natural part of everything you make and do. One of the most valuable forms of innovation comes from using AI to continuously improve ways of working. Teams that are comfortable using AI in their day-to-day work are more likely to innovate with AI.
“Organizations that embrace AI innovation across all levels of work – from automation to strategic planning – will be the ones that define the future.”
Why employees resist AI—and how to overcome it
Despite AI’s potential, many employees remain hesitant to use it. In fact, the 2025 State of Performance Enablement report found that employee attitudes toward AI are deeply tied to whether they have the right tools:
- 90% of employees who have access to the right AI tools feel positive about AI.
- 83% of those without the right tools feel very negative about AI.
Providing employees with accessible, high-quality AI tools – and the training to use them effectively – is essential for increasing adoption and driving innovation.
Top reasons employees don’t use AI
Many employees hesitate to use AI because they don’t see its relevance or don’t know how to apply it. The report found that nearly one-third don’t believe AI will help them in their role, and approximately one-quarter of employees don’t know how to use it in their role and haven’t received any AI training.
This hesitation is a major barrier to AI-driven innovation. If employees don’t see the value of AI, they won’t experiment with it, and organizations will miss out on opportunities for strategic breakthroughs. Uneven AI adoption also poses a retention threat. Equally true is that among employees who are using it, a lack of structure and process in their organizations may be leading to a kind of “wild West” free-for-all.
Employees are adopting AI—with or without employer support
As some employees hesitate, others are jumping in and adopting AI tools—whether their organizations support it or not. The 2024 Work Trend Index Report from Microsoft and LinkedIn found that:
- 78% of employees are using “Bring Your Own AI” (BYOAI) tools at work.
- This trend is even stronger in smaller companies (80%) and spans all generations.
This reality makes it even more imperative for organizations to have a structured, well-communicated approach to AI adoption. Without guidance, employees may use AI inefficiently – or even unethically or dangerously – introducing risks like misinformation, bias, and security concerns. By contrast, a structured and intentional approach to AI can build a resilient organizational culture.
AI fluency is becoming a hiring requirement
As the demand for AI skills grows, AI is no longer optional for employees looking to advance their careers. Employers are making AI fluency a hiring priority, and those without AI skills risk being left behind.
The 2024 Work Trend Index Report reveals that two-thirds of business leaders wouldn’t hire someone without AI skills. When it comes to experience vs. AI skills, the latter clearly wins out: 71% would choose a less experienced candidate with AI skills over a highly experienced one without such skills. Early adoption is also a career trajectory for younger employees: 77% of business leaders believe AI will empower early-career professionals with greater responsibilities.
This shift signals that AI proficiency will be a defining factor in career growth. Employees who learn how to work effectively with AI will have a clear advantage in the job market. As a corollary, organizations that encourage and guide AI experimentation, provide training and learning opportunities, and deliver the appropriate tools will not only aid their employees but unlock the innovation needed to compete.
How organizations can improve AI fluency
To fully realize AI’s potential, organizations must invest in AI fluency at every level. The 2025 State of Performance Enablement report recommends creating a playbook that includes:
Provide AI Training for All Employees – AI isn’t just for IT and engineering teams, and it’s not primarily a tool for management. Employees across functions need targeted training on how to integrate AI into their daily work.
Choose the Right AI Tools – AI tools should be intuitive, ethical, and aligned with employees’ needs. Frustrating or irrelevant AI tools can lead to disengagement.
Create an AI-Supportive Culture – Leaders must encourage AI experimentation and showcase AI success stories to build trust.
Implement AI Governance – Organizations need clear policies to ensure AI is used responsibly, avoiding risks like bias and misinformation.
The foundation for continuous innovation
AI-driven transformation doesn’t happen overnight—it’s a cumulative process. As PwC’s 2025 AI Business Predictions highlights:
Making AI intrinsic to the organization is vital, because making ’big leaps’ (such as new business models) is only one source of game-changing AI value. The other is the cumulative result of incremental value at scale: 20% to 30% gains in productivity, speed to market, and revenue, first in one area, then another — until the company is transformed.
“When AI becomes an intrinsic part of work,” says PwC, “organizations gain a competitive edge that compounds over time. The businesses that prioritize AI fluency now will be the innovation leaders of the future.”
AI fluency is the new competitive advantage
The future of work isn’t just about using AI – it’s about understanding and mastering it. Organizations that invest in AI fluency will unlock new levels of innovation, efficiency, and competitive advantage.
The choice is clear: embrace AI as a strategic enabler or risk falling behind in a rapidly evolving business landscape. The companies that act now will shape the future, while those that hesitate may struggle to keep up.
To gain additional insights and recommendations, read the condensed version of the 2025 State of Performance Enablement report online and be sure to download the full report.
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