AI and Productivity: A Global Look at What’s Next

Key Takeaways 

• AI adoption is reshaping work differently across global markets, driven by local labor needs, regulatory environments and cultural attitudes.
• While AI offers opportunities to boost productivity and enhance employee experience, its benefits will depend on whether companies choose to reinvest gains into their people or prioritize profit.
• From burnout concerns in Canada to talent shortages in the Netherlands, the future of AI in the workplace will hinge on ethical implementation, employee training and long-term workforce planning.

In Italy, AI adoption could help combat a shrinking labor force. In the U.K., a light-touch approach to AI regulation has driven a wave of experimentation. In the U.S., organizations can use AI to focus on employee wellbeing, even as it benefits the bottom line. AI is upending work in slightly different ways in different markets (and it’s going to affect different types of jobs in different ways). But everywhere, it’s sparking soul-searching about the meaning — and future — of human labor. 

How will employers take advantage of the potential time savings from using AI? Will they reinvest it into the workforce by offering shorter workweeks or more flexible schedules? Or will they hoard the benefits, maximizing profits at the expense of employees?

“We will need to rethink how we value people,” says Kyle M.K., a Talent Strategy Advisor at Indeed, “not just for their productivity, but for the quality of their ideas, the strength of their relationships, and the morale they bring to a team.”

To see how attitudes on productivity and AI vary by market, we asked Indeed’s Talent Strategy Advisors from around the world how employers are using AI and what it means for workers. Here’s what they said.

The United States: Investment in Work Wellbeing

In the U.S., M.K. predicts the age of AI could inspire some employers to invest more in work wellbeing. A company could well already be maximizing people’s productivity, but the cost of employee turnover is still high, and the workforce of the future — Gen Z — already expects more of their employers in terms of flexibility.

“Even if you are ‘bottom line–oriented,’ the bottom line does better when your people do better,” M.K. says. The data bears that out. According to a University of Oxford analysis of Indeed’s Work Wellbeing Score results, greater employee wellbeing is tied to higher company valuation, returns and profits.

In an AI-driven future, companies may reinvest in employees by, say, transitioning to four-day workweeks, M.K. says, which can boost productivity and improve people’s mental health. Others may spend that time training employees in skills AI can’t accomplish. 

Of course, M.K. acknowledges, there will be plenty of companies that don’t take this approach and use AI’s productivity gains to justify layoffs or hiring freezes. “It would be naïve to think everything will be rainbows and butterflies,” M.K. says. “But I genuinely believe the companies that prioritize their people during this technological shift will come out ahead in the long run.”

The Netherlands: Using AI to Fill Labor Gaps 

“In the Netherlands, AI adoption is driven both by talent shortages and productivity gains,” says Alvera Lubbers, a Talent Strategy Advisor in Amsterdam. That’s pushing AI adoption into tech and healthcare roles, which can be hard to fill. Some Dutch hospitals are using AI-driven chatbots and diagnostic tools to support overworked doctors and nurses, Lubbers says, rather than trying to hire more staff they can’t find.

Still, many employees remain concerned about the rise of AI at work. “I definitely see tensions emerging as employers roll out AI tools across the Netherlands. Employees may fear that AI will replace their jobs,” she says. But while some jobs may disappear, Lubbers anticipates many new ones will be created. 

She says companies could see significant time savings from AI, which could translate to shorter workweeks, and employees will be able to focus more on tasks that energize them. She also believes Dutch labor protections will slow down any wave of mass layoffs. “Employers who reinvest AI-driven cost savings into employee training can also build a more skilled, future-proof workforce,” Lubbers says.

Italy: Slow and Steady Adoption 

Italian companies have been especially slow to adopt AI, particularly for screening job applicants, because of the local regulatory environment and reputational concerns, says Gianluca Bonacchi, Senior Talent Strategy Advisor in Milan. 

“Local regulations strictly prohibit covert employee monitoring and impose tight restrictions on technologies that collect data without explicit consent. Italy also has a strong focus on privacy and data protection, especially regarding sensitive data, which may affect the use of AI in HR,” Bonacchi says. “Companies want to avoid unintentional discrimination and ensure that AI does not introduce biases.”

Still, Bonacchi sees opportunities for companies to address Italy’s shrinking labor force with AI. “Productivity in Italy didn’t grow over time as fast as in other countries, and it would be a great way to see companies grow and boost the economy. There will be an impact on the workforce, as with every major change, but with the labor force shrinking, it should be seen as a way to fix something that we can’t fix: the talent mismatch.”

Germany: Expanding Opportunity 

Norman Mauer, a Senior Talent Strategy Advisor in Düsseldorf, says German companies are “pretty eager” to adopt AI tools, driven by the country’s strong automotive and engineering sectors.

Mauer says he knows of a massive shipping hub, handling tens of thousands of parcels a day, that uses AI translation tools to help its multinational warehouse staff navigate the floor. “Back in the day, you had a robotic voice telling you in maybe four different languages what you have to do, and if you did not speak one of these four different languages, you were probably out of the game,” he says. “That changed because of AI.”

Mauer also described a large customer service call center that recently began using chat agents to answer simple requests. “Maybe the AI is replacing this particular job, but workers can then be moved up the ladder,” he says, adding that workers can now use large language models to ask questions directly, allowing for greater flexibility than when they had to rely on a handbook.

Still, Mauer is skeptical that AI will drastically reduce the workweek to just a couple of days, leaving the rest for leisure. A more likely scenario for a workplace like, say, the shipping hub or call center? Mauer predicts, “They’ll work the same amount of time, but move more parcels and information more effectively.” 

UK: Lightening the Admin Load

The U.K.’s relatively light-touch approach to AI regulation has made it a hotbed of experimentation, says Matt Burney, a Senior Strategic Advisor based in England. “I think we’ve got a strategic advantage.”

While Burney is also doubtful that the age of AI will drive employers to four-day workweeks, he is optimistic that AI adoption will improve both the quality of work that HR and TA leaders do and, just as importantly, the enjoyment they get out of it. “If a talented recruiter can’t manage 500 requisitions because there’s so much administrative process in there, maybe they can now because we’ve automated that work,” he says. “That gives them the time to go and do all of the very human bits that they are good at.”

On the flip side, Burney predicts, the AI era may also weed out low performers who weren’t adding much to the job beyond processing paperwork. In a world where much of that work is automated, he says, “they’ll get found out really quick.”

France: Training in AI Skills

Eric Gras, Senior Manager of Talent Strategy in Paris, sees AI as a speeding train. In France, many companies are watching it speed by, afraid to jump on board. Why? Above all, it’s due to fear of the unknown and novelty, but also the productivity gains it could bring. “We think, if an AI can do half my job better and faster, maybe my manager or CEO can take it away from me,” Gras explains.

Companies embarking on this adventure are investing heavily in training their employees on these tools to optimize their work. “They can then share with their colleagues how they already use them and the benefits they bring,” he explains.

Many companies and talent managers, however, are still looking to prove that AI is profitable. “We need to provide proof,” Gras says. “For a recruiter, if you show that an AI can do something better and faster, and you show them that it can save 30% of their time, with real added value where we need employees, then it will make sense.”

India: Using AI for Job Elevation, Not Replacement

What sets India apart from other countries in the world, says Rohan Sylvester, a Talent Strategy Advisor in Bengaluru, “is the sheer optimism and confidence among both employers and job seekers.” According to Indeed survey data, 98% of HR/TA leaders and 91% of job seekers are already using AI tools at work — the highest figure across the 11 nations surveyed.

“The push toward AI in India is largely about unlocking productivity and efficiency,” Sylvester says, noting that most HR/TA leaders believe AI can positively impact recruitment speed and personalization. “Most employers will likely channel these gains into higher-value activities — creating, innovating and elevating the candidate experience. For recruiters, this means more time spent on meaningful interactions.”

Canada: Battling Burnout

There are a lot of things that make AI adoption in Canada unique, says Alexandra Tillo, an Indeed Talent Strategy Advisor based in Toronto. For one thing, Canada is a bilingual country, which “adds complexity to AI tools.” It’s also an early adopter of AI legislation, including the Artificial Intelligence and Data Act (AIDA). 

“This puts pressure on employers to ensure ethical and transparent AI use, even before formal laws take effect,” Tillo says, noting that Canada also has robust employment equity laws and human rights laws. “This makes Canadian HR teams more cautious and compliance-focused compared to some other markets.”

Still, Tillo says Canadian companies are already using the technology for resume screening, interview scheduling and candidate matching. Companies want AI to help them reduce costs and the need to use external staffing agencies for recruitment.

But Tillo doesn’t anticipate perks like shorter work weeks. “They will most likely reallocate time rather than reduce it,” she predicts. That could lead to two very different outcomes, she says: a more strategic approach to hiring with less task overload — or greater demand for increased productivity. “There’s the risk of employees being under more pressure to achieve faster turnaround and higher expectations,” she says. “This could increase stress and anxiety and lead to more burnout.”
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Related Links

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