AI tools are widening the workplace divide between management and employees, report warns

New research suggests there is a widening gulf in the use of AI tools between senior leaders and junior staff, raising concerns that productivity gains from the technology are being unevenly shared. According to the Work that Works report from employment platform Employment Hero, nearly three-quarters of senior managers in the UK use AI tools each month. Among entry-level staff, that figure falls to just 32 percent.

The report points to a growing “AI advantage gap” in small businesses, with leadership benefiting from automation and support tools, while others are left behind. Despite assumptions that Gen Z workers are leading the charge, millennials are in fact the most frequent users of AI.

This divide is having a direct impact on performance. The report finds that employees who feel left out of AI initiatives report a 50 percent drop in productivity. Firms that have made little progress on AI adoption see a similar dip.

Smaller firms appear to be at particular risk. Companies with fewer than 50 employees are half as likely to have introduced AI tools. They are also significantly less likely to invest in technology or prioritise digital skills, with many describing themselves as being in “survival mode”.

The report challenges the view that AI is a shortcut rather than a support tool. Among those who use it regularly, 40 percent say it reduces feelings of overwhelm, while 38 percent report improved quality of work.

Kevin Fitzgerald, UK managing director at Employment Hero, said that current AI adoption strategies are not reaching enough people. “AI is only delivering productivity gains for some, and that’s a huge problem,” he said. “We need a trickle-down, human-centred approach to adoption. One that starts with leadership, but quickly and intentionally reaches every corner of the business.” He added that closing the gap is vital—not just for individual businesses, but for the wider economy.