'Every business leader knows the world is changing, but far fewer have a clear picture of what to do about it': Microsoft flags the changing world of AI at work, and why "Frontier Firms" are leading the way

Microsoft digs deep into how businesses are using AI

by · TechRadar

News By Mike Moore published 5 May 2026

(Image credit: Getty Images)

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  • Microsoft Work Trend Index highlights growing presence of AI at work
  • Many employees are coming round to using AI tools more
  • However many businesses are still failing to offer the right level of tools

New findings from Microsoft’s 2026 Work Trend Index suggest that the narrative around AI in the workplace is shifting decisively as employees become more positive to the technology.

The report, which combined findings from trillions of anonymized Microsoft 365 productivity signals and a survey of 20,000 workers utilizing AI across 10 countries, highlighted a widening gap between individual capability and institutional adaptation.

In short, Microsoft found workers are increasingly open to using AI more at work — but are often being let down by their employer's platforms and systems.

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"Frontier Firms" leading the way

At the individual level, the report found AI is already reshaping the nature of knowledge work, particular at what Microsoft calls "Frontier Firms" — those leading the way on embracing the technology.

Nearly half (49%) of Microsoft 365 Copilot interactions now involve cognitive tasks such as analysis, problem-solving, and creative thinking, showing how AI is not merely automating routine work but also augmenting higher-order functions.

This is reflected in outcomes: over half (58%) of surveyed users report producing work they could not have completed a year ago, rising to 80% among so-called “Frontier Professionals” — workers at Frontier Firms.

However, the report notes the primary constraint on AI impact is no longer technological or individual — it is from the organization themselves.

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