The Productivity Trap: Why Employees Are Burning Out From AI Efficiency

a woman sitting at a computer looking stressed

As AI accelerates the pace of work, it’s creating a new kind of invisible load that is overwhelming the people who use it best.

The employees who are gaining the most productivity from AI use are also the most burned out. Among high-performing AI users, 88% report experiencing burnout(1), and they’re twice as likely to be considering quitting compared to workers who use AI less effectively.

This is the paradox of the AI-powered workplace: the productivity gains are real, but they’re coming at cost. Your highest performers aren’t coasting on automation but are drowning in a new kind of work that’s cognitively exhausting and largely invisible to leadership.

While executives celebrate efficiency wins, employees are experiencing something different. AI hasn’t reduced their workload; it’s transformed it into a cycle of reviewing, correcting, and quality-checking machine output. The time they save on one task immediately gets filled with three more assignments. The bar for “good performance” keeps rising, and there’s no finish line in sight.

If you’ve noticed your most tech-savvy employees seem more stressed than ever despite their impressive output, it’s time to address what AI adoption is actually doing to your team.

What’s Actually Happening: The “Productivity Tax”

While 96% of business leaders expect AI to boost productivity, 77% of employees report that AI tools have actually added to their workload(2). This disconnect reveals what is being called the “Productivity Tax” which is a collection of hidden, cognitively demanding tasks that now come with every AI interaction:

The Reviewer Burden: Your employees aren’t just clicking “generate” and moving on. They’re spending significant time reviewing, correcting, and quality-checking AI output. AI produces high-volume drafts, not finished work.

The Learning Burden: AI tools evolve constantly. Your youngest employees are shouldering the burden of keeping up, often on their own time, especially since most employees feel their organization hasn’t been proactive about AI training.

The Volume Burden: When an employee completes a task faster using AI, leadership often responds by assigning more work. The productivity gain gets “reinvested” immediately, creating an “infinite workday”(3).

Your under-30 employees typically have higher digital fluency and were often the first to experiment with AI tools. This made them visible but also vulnerable to increased expectations. And, because they are still proving themselves, they are seeing their performance bar rise immediately when leadership sees them accomplish more with AI.

What You Can Do About It

1. Redefine AI’s Mission From Efficiency to Augmentation

Stop measuring “time saved” and start measuring “time reinvested.” The goal isn’t to cram more tasks into the workday, but to free up time for higher-value work like:

  • Building deeper client relationships
  • Strategic thinking and innovation
  • Mentorship and skill development
  • Creative problem-solving

Communicate this to your team. Tell them: “We’re using AI to eliminate busywork so you can focus on work that actually requires human judgment and creativity.”

2. Implement Human-in-the-Loop (HITL) Workflows

Create a simple triage system for every AI use case:

  • Full Automation: Low-risk, repetitive tasks (scheduling, email sorting)
  • Human-Only: High-stakes decisions (performance reviews, client complaints, strategy)
  • Human-in-the-Loop (most tasks): AI suggests, trained human confirms and refines

Make it clear: the human is accountable for the final output, and their role is editor and quality controller, not just copy-paste.

3. Train the “Critical Verification” Skill

Your employees need training in three core competencies:

  • Selective Use: When should AI be used and when shouldn’t it?
  • Critical Verification: How to check facts, test code, and adapt AI output to specific contexts
  • Accountability: Understanding they’re 100% responsible for the accuracy of any AI-assisted work

Consider running an “AI Limitations Workshop” showing real examples of AI failures: bias, hallucinations, and data privacy risks. Build a healthy skepticism.

4. Fix the Workload Expectations

The most important intervention: stop the “Performance-Punishment” cycle.

  • Don’t automatically increase quotas just because a task can be done faster
  • Recognize that AI-assisted work often requires more cognitive effort, not less
  • Protect the “bought-back” time and explicitly designate it for strategic work

Consider new metrics that reward things like innovative ideas or enhanced client relationships.

5. Create Transparency Around Roles and Job Security

Workers worry AI might replace their job. This anxiety is a direct driver of burnout, triggering “fear-based productivity” where young employees work longer hours trying to prove their worth.

Combat this with transparency:

  • Be specific about which tasks AI will handle (not which jobs)
  • Emphasize augmentation over automation

6. Rebuild Human Connection

If your employees are finding AI “more empathetic” than their colleagues, you have a management problem, not a technology problem.

  • Designate “AI-free zones” for 1:1s, conflict resolution, and creative brainstorming
  • Invest in soft skills training: active listening, constructive feedback, empathy
  • Increase human check-ins as AI handles more administrative work

The businesses that will win in this new era aren’t those with the best AI tools. They’re the ones with leaders who understand that AI’s true value isn’t technological efficiency, but human augmentation. Leaders who protect their talent from the “productivity trap” and invest their team’s reclaimed time in the work that actually matters: innovation, relationships, and growth.

Your most valuable employees have already shown they can master the technology. Now it’s your turn to master the leadership challenge that comes with it.

 

Sources

(1)Upwork Research Institute, High-performing AI users burnout study

(2)Upwork Research Institute, When Human Pace Meets Machine Speed

(3)Microsoft Work Trend Index, "Infinite workday" analysis

 

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