Employee engagement in the U.S. remained unchanged during the first half of 2026, with 31% of workers engaged and 18% actively disengaged, according to Gallup. Engagement has now remained at its lowest level in years after falling from a recent high of 36% in 2020.
Gallup estimates the decline since 2020 represents roughly 8 million fewer engaged employees and continues to cost the U.S. economy about $2 trillion annually in lost productivity.
AI Adoption Isn’t Enough
As organizations rapidly expand AI use, Gallup found the technology itself is not driving a better employee experience.
Employees working at organizations that have adopted AI are generally more engaged than those whose employers have not. However, the biggest gains occur only when companies provide clear guidance on how AI should be used and managers actively support employees throughout the transition.
Within AI-enabled organizations, employees who use AI at least weekly are more engaged than infrequent users. But organizations with a defined AI implementation plan see an even larger engagement advantage.
The strongest results came when three conditions were present simultaneously: employees regularly used AI, leaders had a clear implementation strategy, and managers actively coached AI adoption. Under those circumstances, employee engagement climbed to 53%.
Managers Are Driving AI Success
Gallup found manager support had the strongest relationship with engagement.
Employees whose managers actively encourage and guide AI use reported engagement rates of 48%, compared with 30% among those without that support.
The research suggests managers play a critical role in translating AI strategies into day-to-day work by setting expectations, explaining where AI adds value, and helping employees understand when human judgment remains essential.
Productivity Depends on Leadership
The report also found that simply providing AI tools does not guarantee productivity gains. Among employees who regularly use AI, only 17% reported the highest level of productivity improvement. That figure rose significantly among employees who also had clear AI guidance, supportive managers, and high engagement.
Gallup concludes that organizations are more likely to see measurable returns from AI when leaders integrate the technology into performance management, establish role-specific expectations, and equip managers to coach employees through changing workflows.
Rather than replacing good management, the findings suggest AI makes effective leadership even more important as organizations adapt to new ways of working.
