Employees are relying on AI more than ever — and costly mistakes are piling up faster than companies expected.
The rapid rise and use of artificial intelligence (AI) tools in U.S. workplaces is creating new opportunities for productivity, but also new challenges as employees make mistakes that disrupt workflows and incur financial costs.
A recent survey of U.S. managers by Resume.org reveals that AI-related errors are widespread, with nearly 70% of managers reporting that direct reports made at least one mistake using AI in the past year.
Common Mistakes and Their Impact
The most frequent errors involve inaccurate information and omission of critical context. More than half of managers observed employees submitting AI-generated work with factual mistakes or lacking nuance. Other errors included low-quality outputs, poor recommendations, unclear communication, and issues affecting confidentiality or compliance.
These mistakes have ripple effects across organizations: 58% of managers reported personally dealing with AI errors, while clients, coworkers, supervisors, and vendors have all experienced negative consequences. Common outcomes include extra work to correct mistakes, missed deadlines, damaged internal relationships, and harm to brand credibility.
Financial Consequences Are Significant
AI-related errors carry real financial risk. Nearly 20% of managers said mistakes cost their company more than $10,000, with 5% reporting losses over $50,000. These figures underscore the need for companies to implement training, clear guidelines, and oversight for AI use.
Younger Employees More Likely to Make Errors
Managers identified Gen Z employees (18–29) as the most prone to AI mistakes, followed by Millennials. Experts attribute this to high reliance on AI early in workflows and limited formal training. Gen X and Baby Boomers were less frequently cited as error-prone. Organizations are advised to invest in onboarding, mentoring, and scenario-based training to close these gaps.
Using AI Safely Requires Human Oversight
Survey results highlight that AI tools perform best as assistants, not decision-makers. Over-reliance on AI without verification or context leads to costly errors. Experts emphasize that proper use involves validating outputs, applying judgment, and integrating AI as a support tool for drafting, summarizing, and exploring options rather than replacing human decision-making.
A Growing Challenge for the Future of Work
As AI becomes embedded in workflows, companies face a dual challenge: capturing efficiency gains while mitigating risk from human errors. The survey suggests that organizations that invest in structured training, clear usage policies, and accountability measures will be better positioned to realize AI’s potential without compromising quality, relationships, or finances.
