On May 27, 2026, Workday Inc. (NASDAQ: WDAY), a leading enterprise AI platform for HR, finance, and IT, released groundbreaking global research that reveals the dual-edged nature of artificial intelligence in the workplace. While AI appears to alleviate burnout and enhance employee confidence, it also poses a significant risk of fostering a “connection deficit.” The study highlights that younger employees, particularly Gen Z, are disproportionately affected, with 20% of respondents from this demographic reporting feelings of loneliness or isolation leading to time off work.

2. The Human Connection Workplace Index

The Human Connection Workplace Index, a comprehensive survey conducted by the Workday Foundation, involved 2,150 employees from large enterprises across various industries and regions. The research aimed to measure the transformative effects of AI on trust, collaboration, and social connections among workers.

Positive Outcomes of AI Adoption

The findings from the Index reflect several beneficial outcomes from AI adoption in the workplace:

Reduction in Burnout and Increased Productivity: A significant 62% of employees reported a decrease in stress or burnout risk since using AI tools, while 86% felt that these tools have boosted their productivity. Many employees indicated that AI has enabled them to focus on higher-value and more strategic tasks.

Rising Employee Confidence: Nearly two-thirds (64%) of the surveyed individuals stated that AI has enhanced their confidence in their ability to succeed in future roles.

Emerging Challenges: The Connection Deficit

Despite the positive metrics, the Index also uncovers potential pitfalls in workplace relationships:

Erosion of Everyday Connections: Approximately one-third (33%) of respondents indicated that they rarely engage in conversations with colleagues beyond transactional work tasks. Furthermore, less than half (46%) found it easy to form friendships at work, and 14% reported taking time off due to feelings of loneliness or social isolation.

AI as a Substitute for Human Interaction: With the integration of AI, 16% of respondents noted a decreased patience for small talk with colleagues. Over the past year, 76% utilized AI for advice, 52% for brainstorming, and 37% even sought companionship from AI, citing its judgment-free and always-available nature as a primary reason for this shift.

Generational Disparities: The report highlights a stark generational gap, with Gen Z workers being 12 times more likely than Gen X individuals to feel completely disconnected from their colleagues. Gen Z employees are also twice as likely as millennials and eight times as likely as Gen X to feel lonely at work. More than 20% of Gen Z respondents claimed that AI tools have negatively impacted their personal relationships with colleagues.

3. Implications for Employee Engagement and AI Adoption

The findings emerge against the backdrop of a troubling trend in employee engagement, which has reportedly cost the global economy $10 trillion in lost productivity last year. Notably, when asked about their top concerns regarding AI, 43% of respondents cited reduced human-to-human interaction—expressing a pressing need to address human connection as AI continues to proliferate in workplaces.

Carrie Varoquiers, Chief Impact Officer at Workday, emphasized the balance that must be struck, stating, “We are seeing that AI is having a very positive effect on productivity at work, and employees across all industries globally are clearly telling us they feel less burned out than before they started using AI tools. But our Index cautions that, as we route more questions, ideas, and even conflicts through AI, we risk losing the everyday human interactions that build trust, resilience, and a sense of connection.”

4. Workday Foundation's Initiative to Foster Human Connection

In response to the identified connection deficit, the Workday Foundation has announced a commitment of $500,000 USD in microgrants ranging from $2,500 to $10,000 for eligible nonprofits worldwide. These grants aim to support initiatives that promote human connection within communities, focusing on programs that facilitate joyful activities, intergenerational conversations, and the use of prosocial technology to enhance social bonds.

5. Conclusion: Designing a Connected Workplace

The Human Connection Workplace Index serves as a crucial reminder for organizational leaders to prioritize social connection as a fundamental component of workplace culture. The report suggests that leaders must intentionally design collaboration processes, feedback mechanisms, and mentorship opportunities while tracking how AI influences trust and belonging among teams. By placing guardrails around AI interactions, companies can ensure that AI serves to augment rather than replace the essential human conversations that foster resilience and innovation.

As Workday continues to lead the charge in AI adoption within the enterprise space, the findings from this report underscore the importance of balancing technological advancements with the need for genuine human connections in the workplace.

Original press release