Around 13% of employees are in the high-burnout category, while nearly one in four chief human resources officers (CHROs) expects artificial intelligence to reduce workforce headcount by up to 20% over the next two years, according to a new study by Great Place To Work India.
The findings highlight growing uncertainty in workplaces as companies accelerate AI adoption while managing a younger workforce with changing expectations around flexibility, purpose and job security.
Balbir Singh, CEO of Great Place To Work India, said organisations are facing the combined impact of workforce transformation, AI adoption and changing employee expectations.
AI raises new concerns about job security
AI adoption has moved beyond experimentation, with companies increasingly deploying the technology across teams and functions. However, the transition is creating new challenges for employees and managers.
Around 44% of CHROs said one of their major concerns is that high-performing employees are using AI to widen the gap with colleagues who are struggling to keep pace.
The study also points to uncertainty over the reliability of AI-generated work. About 32% of CHROs said employees remain unsure about which AI-generated outputs need to be verified and which can be trusted.
Job security is another major concern. Nearly 25% of CHROs anticipate a 1-20% reduction in workforce headcount because of AI over the next two years.
At the same time, the long-term impact remains difficult to predict. Almost 45% of CHROs said it is still too early to estimate how AI will affect workforce size over the longer term.
The uncertainty extends to performance management. Around 21% of managers said they are unsure how to evaluate performance in an AI-enabled workplace, while 26% of employees feel leadership is not clearly addressing concerns about job security.
Burnout remains a workplace challenge
Despite increased attention to employee well-being, burnout continues to affect a significant share of the workforce.
The study found that medium burnout has declined from 21% in 2019 to around 15% currently, while approximately 72% of employees fall into the low-burnout category.
However, progress appears to have stalled. Burnout levels have remained broadly stable between 2022 and 2026, with around 13% of employees still experiencing high burnout.
Gen Z pushes for greater flexibility
The changing composition of the workforce is also influencing workplace expectations.
Gen Z employees now account for 26% of the workforce, nearly twice their share in 2023, according to the study.
Workplace flexibility is particularly important to this generation. As many as 81% of CHROs identified flexibility as the top workplace priority for Gen Z, compared with just 8% for Gen X and older generations.
The growing presence of Gen Z is therefore prompting organisations to rethink how they approach work culture, flexibility and employee engagement.
Employees less willing to go the extra mile
The study also found that discretionary effort has declined by 4% since 2023, with six in 10 organisations reporting a year-on-year fall.
In practical terms, employees may continue to meet their core responsibilities, but fewer appear willing to contribute additional effort beyond their defined roles.
Nearly 58% of CHROs said their organisations are simultaneously dealing with AI-related and generational challenges.
According to Balbir Singh, organisations that adapt successfully will need to combine faster technology adoption with trust, clarity and meaningful work.
The findings suggest that while AI could reshape workforce structures and job roles, companies will also need to address employee confidence, burnout, career progression and workplace flexibility as the transformation continues.
