Betterworks, the leading modern performance management software company, today released its highly anticipated 2025 State of Performance Enablement report, “AI and the Employee Experience: Balancing Opportunity and Anxiety.” It reveals a workplace at a crossroads: AI is driving record-breaking productivity, but its most engaged users are heading for the exit. The divide is driving employee sentiments in opposite directions, threatening to undermine organizations’ ability to retain top talent and maintain an agile, upskilled workforce able to innovate.
“As AI rapidly reshapes the workplace, leaders have a unique opportunity to move beyond experimentation and low-hanging fruit using AI for routine tasks, and drive intentional AI adoption at all levels that will further business strategy and competitiveness,” said Doug Dennerline, CEO of Betterworks. “The key is democratizing AI skills and fostering career mobility for all—creating an environment where innovation thrives.”
This year’s research, based on insights from over 2,100 employees and leaders in the US and UK, highlights a growing talent divide: AI-driven high performers are on the move, while those disengaged from AI are staying put. Nearly 8 in 10 highly engaged employees — often AI-savvy talent — are actively seeking new opportunities outside their current company while 65% of AI-resistant employees plan to stay.
Paradoxically, AI power users understand both the opportunities their highly marketable skills create and the risk of losing their jobs to AI. Less frequent AI users are far less concerned about the role of AI in replacing them and keeping their skills up to date. The dichotomy means organizations face two critical challenges: How can they fully leverage AI’s potential while retaining their top talent, and how do they continue to innovate in an AI-driven environment?
To bridge this gap, the report urges organizations to embed AI into performance enablement, democratize AI literacy, and leverage AI to help employees identify needed skills and uncover career advancement opportunities. By improving internal mobility and removing certain responsibilities from managers, employees can exercise greater control over growth opportunities while enabling managers to focus on coaching employees and relationship-building.
Additional Key Findings: AI’s Hidden Workplace Tensions
- Employees recognize AI’s benefits—boosting productivity, quality, and creativity—yet 93% of daily AI users say they’ve barely scratched the surface of its capabilities.
- Executives are embracing AI, but adoption lags below the C-suite. Senior leaders are twice as likely as managers and 3.5x more likely than individual contributors to be AI power users. Without the right tools and training, AI progress will stall.
- Despite widespread enthusiasm, nearly 50% of AI enthusiasts fear it will replace their jobs. Leaders must address this tension to build confidence in AI-driven workplaces.
AI is transforming the workplace at breakneck speed—but without a clear strategy, businesses risk losing their most forward-thinking talent. This report provides the data and strategy HR leaders need to harness AI’s potential, close the adoption gap, and create a workplace where top talent thrives.
Download the full Betterworks 2025 State of Performance Enablement Report here to future-proof your workforce.
