AI is Driving the Future of Work: 51% of Employees Predict Physical Offices Will Become Obsolete

GoTo, a global leader in cloud communications and IT solutions, has unveiled its latest research report, The Pulse of Work in 2025: Trends, Truths, and the Practicality of AI, conducted with Workplace Intelligence. The survey of 2,500 global employees and IT leaders reveals a powerful trend — artificial intelligence (AI) is reshaping the future of work, enabling a flexible, remote-first model and transforming workplace productivity.

According to the findings, 51% of employees believe AI will make physical offices obsolete in the near future, while 62% prefer AI-enhanced remote work over in-person roles. AI-powered tools such as virtual assistants, generative AI platforms, collaboration technologies, and AI-driven IT support are already redefining how employees and organizations work across industries.

The benefits are striking:

71% of employees say AI improves work-life balance and flexibility.
66% agree AI enables them to work from anywhere without losing productivity.
65% report that AI enhances customer service and efficiency in remote settings.

Even IT leaders are highly optimistic, with 9 out of 10 saying AI has significantly boosted productivity and engagement for distributed teams.

Interestingly, the study found a disconnect between IT leaders and employees: while 91% of IT leaders think their company effectively uses AI for hybrid work, only 53% of employees agree. This highlights a growing need for better AI integration into workplace strategies.

Another key insight: 61% of employees believe AI investments are more valuable than office perks such as amenities, signaling a cultural shift where digital transformation and AI-driven productivity are valued over physical workspaces.

Generationally, the impact spans across age groups — from Gen Z (90%) and Millennials (84%) to Gen X (71%) and Baby Boomers (74%) — all reporting tangible productivity gains from AI-powered workplace tools.

“AI is rapidly evolving from a helpful tool to a foundational force shaping the future of work. The companies that embrace AI as part of their employee experience will lead in productivity, connectivity, and collaboration in a hybrid workforce,” said Rich Veldran, CEO of GoTo. 

As organizations prepare for the future of work in 2025 and beyond, this study underlines the growing role of AI in driving remote work adoption, hybrid workforce models, and workplace efficiency.