A new survey from Ernst & Young (EY) has shown that many US companies are using productivity gains from artificial intelligence (AI) to reinvest in growth, employee development, and technology rather than reduce headcount.
The fourth EY US AI Pulse Survey, conducted among 500 senior decision-makers across multiple sectors, found that nearly all organizations investing in AI (96%) reported some level of productivity improvement, with 57% describing the gains as significant.
Despite media reports highlighting AI-related layoffs, only 17% of companies experiencing productivity gains said these gains resulted in reduced headcount.
Instead, companies are channeling AI-driven benefits into existing AI capabilities (47%), developing new AI tools (42%), strengthening cybersecurity (41%), funding research and development (39%), and upskilling or reskilling employees (38%).
Financial results appear to be driving further AI investment. Among respondents seeing a positive return on AI investments, 56% said it led to significant improvements in overall financial performance.
Planned AI spending is expected to grow sharply. While 27% of companies currently dedicate a quarter or more of their IT budgets to AI, that figure is projected to rise to 52% next year. Organizations investing $10 million or more in AI were more likely to report significant productivity gains (71%) compared with those investing less than $10 million (52%), per the report.
“Organizations that shift from a productivity mindset to a growth agenda are using AI to drive innovation, create new markets and achieve what was previously considered impossible,” EY Global Consulting AI Leader Dan Diasio said in a statement.
“The survey demonstrates this inflection point—companies are reinvesting their gains to build the businesses of the future, not just optimize the operations of today.”
The survey also highlights an increasing focus on responsible and ethical AI practices. 60% of respondents said time spent on responsible AI training has grown in the past year, and 64% expect further increases. Similarly, 68% of companies plan to expand efforts to ensure AI operates ethically, and 63% anticipate increasing transparency with customers about AI use.
“Trust and transparency are the ultimate license to operate as AI diffuses throughout the enterprise,” Diasio said. “Companies are realizing that if they want to turn productivity gains into long-term value, they must prove to their workforce and customers that their systems are not just powerful, but responsible.”
EY US commissioned a third-party vendor to conduct the survey between September 19 and October 16, 2025, across sectors including healthcare, technology, financial services, advanced manufacturing, and real estate.