Companies Struggle With a Hidden Cost of AI

Generative AI has spread quickly in offices. Many firms encourage employees to use it for reports, presentations, and day-to-day communication. Yet surveys suggest that the technology often produces material that looks complete but is of little real use. Researchers call this “workslop^[1],” a label for AI-generated drafts that shift the burden of effort onto colleagues who must repair or clarify them.

How Common It Has Become

A recent study from Stanford University and BetterUp Labs surveyed more than a thousand U.S. employees. Four in ten said they had received workslop in the past month. They estimated that about 15 percent of the content they receive at work falls into this category. Respondents reported spending nearly two hours handling each incident, which includes fixing errors, checking facts, or rewriting sections. At scale, this creates a measurable financial hit. For a company with 10,000 employees, the time lost could translate to more than nine million dollars in productivity losses every year.

Strain on Workplace Trust

The impact is not limited to wasted time. Many workers said they felt annoyed or confused when confronted with low-quality AI output. Around half judged colleagues who relied on such drafts as less capable or less creative. Others questioned their reliability or intelligence. These perceptions can weaken professional relationships and reduce willingness to collaborate. Some employees even said they would rather avoid working with senders of workslop in the future.

Broader Signs of Limited Gains

The Stanford study aligns with other recent findings. An analysis of S&P 500 filings by the Financial Times noted that large companies mention AI often but struggle to show specific benefits. A separate report from MIT’s Media Lab concluded that despite tens of billions invested in generative AI, 95 percent of organizations have seen no return on those investments. Polling by Gallup also found rapid adoption, with about 40 percent of workers using AI, but many lacked clear direction or examples of where it truly added value.

Why Leadership Matters

Researchers argue that company leaders have a role in shaping how AI is applied. Blanket encouragement to use the tools can lead to careless output. Clearer guidance, defined use cases, and shared standards can reduce the chances of employees pushing unfinished drafts onto others. The study suggests that when staff approach AI with purpose and context, the tools are more likely to improve their work instead of creating extra tasks for colleagues.

A Quiet Tax on Productivity

Workslop reflects a broader challenge: speed of production does not always mean progress. Generative AI can create neat slides, long reports, or tidy summaries in seconds. But if that content lacks depth or accuracy, the cost shows up elsewhere. The recipient ends up doing the hard work the sender avoided. In that sense, AI has introduced a hidden tax on workplace collaboration—one that companies are only starting to recognize.

Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.

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