Indian workplaces are entering a new phase of transformation where artificial intelligence is reshaping jobs, employee expectations are evolving rapidly and burnout remains a persistent concern.
According to a new study by Great Place To Work India, nearly one in four CHROs expect AI to reduce workforce headcount by between 1% and 20% over the next two years, while 13% of employees continue to fall into the high-burnout category.
The findings suggest organisations are managing multiple workforce challenges simultaneously as AI adoption moves from experimentation to operational reality.
Balbir Singh, CEO of Great Place To Work India, said organisations are navigating the combined impact of workforce transformation, AI adoption and changing employee expectations.
AI adoption raises fresh questions around jobs
The study indicates AI is no longer a future consideration for most organisations. Companies are increasingly deploying the technology across functions and teams, creating new opportunities as well as new concerns.
One emerging challenge is the growing divide between employees who can effectively leverage AI and those who struggle to do so.
Key findings include:
- 44% of CHROs are concerned high performers are accelerating ahead through effective AI use while others fall behind
- 32% of CHROs report employees are uncertain about which AI-generated outputs can be trusted without verification
- 25% of CHROs anticipate workforce reductions of between 1% and 20% because of AI within two years
- 45% of CHROs say it remains too early to determine AI's long-term impact on workforce size
The findings suggest AI adoption is creating workforce challenges that extend beyond technology implementation into capability development, trust and organisational readiness.
Leadership faces a confidence challenge
The study points to growing uncertainty among both managers and employees regarding how work will be evaluated in AI-enabled environments.
According to the research:
- 21% of managers are unsure how to assess performance in workplaces increasingly influenced by AI
- 26% of employees believe leadership is not clearly addressing concerns around job security
Burnout remains stubbornly persistent
While burnout levels have improved compared with pre-pandemic years, progress appears to have slowed.
The study found:
- 13% of employees remain in the high-burnout category
- 72% of employees fall within the low-burnout category
- Medium burnout has declined from 21% in 2019 to around 15% today
- Burnout levels have remained broadly unchanged between 2022 and 2026
A workforce experiencing sustained pressure may struggle to fully capitalise on productivity gains promised by emerging technologies.
The data suggests employee wellbeing remains a significant concern despite ongoing investments in workplace wellness and engagement initiatives.
Gen Z is reshaping workplace priorities
The report also highlights how generational shifts are influencing organisational priorities.
Gen Z employees now account for 26% of the workforce, nearly double their share in 2023. Their growing presence is changing expectations around flexibility, purpose and the employee experience.
Among CHROs surveyed:
- 81% identified workplace flexibility as the top priority for Gen Z employees
- Only 8% said the same for Gen X and older generations
The findings reinforce growing evidence that workforce expectations are becoming increasingly segmented across age groups.
Discretionary effort continues to decline
The study also identified a decline in discretionary effort across organisations. According to the findings:
- Discretionary effort has fallen 4% since 2023
- Six in 10 organisations reported a year-on-year decline
- 58% of CHROs are simultaneously managing AI-related and generational workforce challenges
Employees may be meeting core job expectations, but fewer are demonstrating the additional effort often associated with higher engagement and organisational commitment.
The next workplace challenge
The study paints a picture of organisations balancing technology adoption with workforce confidence, wellbeing and engagement.
While AI continues to unlock new possibilities for productivity and innovation, the findings suggest business leaders face a broader challenge. Success may depend not only on how effectively organisations deploy AI, but also on how well they address trust, burnout, job security concerns and changing workforce expectations.
As AI adoption accelerates and younger employees represent a larger share of the workforce, organisations will likely face increasing pressure to combine technological progress with meaningful employee experiences and clear career pathways.