Advertisements
Running Remote 2026
Advertise With Us
Wednesday, February 18, 2026
Explore
Allwork.Space
No Result
View All Result
Newsletters
  • Latest News
  • Leadership
  • Work-life
  • Coworking
  • Design
  • Career Growth
  • Tech
  • Workforce
  • CRE
  • Business
  • Podcast
  • More
    • Columnists
      • Dr. Gleb Tsipursky – The Office Whisperer
      • Nirit Cohen – WorkFutures
      • Angela Howard – Culture Expert
      • Drew Jones – Design & Innovation
      • Jonathan Price – CRE & Flex Expert
    • Get the Newsletter
    • Events
    • Advertise With Us
    • Publish a Press Release
    • Brand PulseNew
    • Partner Portal
No Result
View All Result
Newsletters
Allwork.Space
No Result
View All Result
  • Home
  • News
  • Leadership
  • Work-life
  • Coworking
  • Design
  • Workforce
  • Tech
  • CRE
  • Business
  • Podcast
  • Career Growth
  • Newsletters
Advertisements
Yardi Kube automates flex and coworking operations
Home News

AI Adoption Costs Big Companies $4.4 Billion In Early Losses, EY Finds

While AI boosts productivity and efficiency, initial value capture lags as companies reinvest gains, according to a survey of 975 executives from the British business services firm formerly known as Ernst & Young.

Allwork.Space News TeambyAllwork.Space News Team
October 8, 2025
in News
Reading Time: 1 min read
A A
AI Adoption Costs Big Companies $4.4 Billion In Early Losses, EY Finds

AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Nearly every large company to have introduced AI has incurred some initial financial loss, an EY survey published on Wednesday said, often due to compliance failures, flawed outputs, bias, or disruptions to sustainability goals.

Reputational damage or legal problems were less frequently reported. EY, the British business services firm formerly known as Ernst & Young, conducted the anonymised survey among 975 executives overseeing AI at companies with annual sales exceeding $1 billion from around the world in July and August 2025.

Advertisements
Your Brand Deserves The Spotlight - Advertise With Us - Allwork.Space

Total combined losses were estimated at $4.4 billion, with metrics such as revenue growth, cost savings and employee satisfaction trailing expectations. Despite that, the firms polled were still optimistic that AI adoption would ultimately yield significant benefits, EY said.

“AI is absolutely improving efficiency and productivity, people are doing more, faster. But the value capture lags because those gains are being reinvested into doing more work, not necessarily into cutting costs or driving immediate revenue, said Joe Depa, EY’s Global Chief Innovation Officer, in an email to Reuters.

Advertisements
Alliance Virtual Offices - Automate Revenue Ops

EY’s survey was focused on what it terms “Responsible AI” adoption – a series of metrics assessing whether companies have established internal governance policies for AI, communicated clear usage guidelines, and monitored compliance.

Companies with more fully developed “Responsible AI” policies reported stronger performance on sales, cost savings, and employee satisfaction metrics, EY said.

(Reporting by Toby Sterling, Editing by Louise Heavens)

Advertisements
Subscribe to the Future of Work Newsletter
Source: Reuters
Tags: AIBusinessNorth America
Share7Tweet5Share1
Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

Other Stories Recommended For You

Office Building Debt Crisis Arrives as Banks Stop Extending Bad Loans
News

Office Building Debt Crisis Arrives as Banks Stop Extending Bad Loans

byAllwork.Space News Team
1 hour ago

Commercial real-estate lenders can no longer delay bad loans and are now taking the hit. After years of extensions, lenders...

Read more
Crackdown on Immigration Is Cutting Job Growth and Housing Supply, Fed Says

Crackdown on Immigration Is Cutting Job Growth and Housing Supply, Fed Says

3 hours ago
Switching Jobs No Longer Guarantees Bigger Raises in Today’s Low-Churn Labor Market

Switching Jobs No Longer Guarantees Bigger Raises in Today’s Low-Churn Labor Market

3 hours ago
SEC Calls to Reduce How Much Companies Reveal About Executive Compensation

SEC Calls to Reduce How Much Companies Reveal About Executive Compensation

3 hours ago
Advertisements
Deel - Upgrade your global team management
Advertisements
Yardi Kube automates flex and coworking operations

The Future of Work® Newsletter helps you understand how work is changing — without the noise.

Choose daily or weekly updates to stay current, and monthly editions to explore worklife, work environments, and leadership in depth.

Trusted by 22,000+ leaders and professionals.

2026 Allwork.Space News Corporation. Exploring the Future Of Work® since 2003. All Rights Reserved

Advertise  Submit Your Story   Newsletters   Privacy Policy   Terms Of Use   About Us   Contact   Submit a Press Release   Brand Pulse   Podcast   Events   

No Result
View All Result
  • Home
  • Latest News
  • Topics
    • Business
    • Leadership
    • Work-life
    • Workforce
    • Career Growth
    • Design
    • Tech
    • Coworking
    • Marketing
    • CRE
  • Podcast
  • Events
  • About Us
  • Advertise | Media Kit
  • Submit Your Story
Newsletters

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00