What Does the Human Side of Work Look Like in the Age of AI?

Source – State of the Global Workplace 2026

The release of State of the Global Workplace 2026 by Gallup offers an important lens into how work is evolving alongside ongoing technological change. While much of the global conversation on AI focuses on efficiency and productivity, this report centres around how people are experiencing work.

The findings highlight a moment of transition. Organisations are moving quickly on technology, but the human experience of work is shifting in more complex ways. Engagement is declining, manager roles are evolving, and employee wellbeing continues to need attention. These trends point to the need for a more balanced approach to the future of work.

Key Highlights

The Engagement Slump Continues

Global employee engagement declined for the second consecutive year in 2025, falling to 20%, down from 23% in 2022. This marks the lowest level since 2020.

This decline signals a growing disconnect between employees and their work. Engagement is closely linked to productivity, retention, and team performance, making it a critical indicator for organisations to track and respond to.

The Changing Role of Managers

A key driver of this trend is the decline in manager engagement. Since 2022, manager engagement has dropped by nine percentage points, with a sharp fall between 2024 and 2025.

Managers, who previously reported higher engagement than their teams, are now experiencing similar levels. This shift suggests that the role itself is becoming more demanding. With flatter structures and fewer managerial layers, managers are often balancing performance expectations with team support, without a corresponding increase in resources or clarity.

Job Market Optimism Shows Stability

Employee perceptions of the job market improved slightly in 2025, with 52% of employees believing it is a good time to find a job.

While this reflects steady confidence, it remains below pre-pandemic peaks. The data indicates that although economic conditions have stabilised, employees continue to approach job opportunities with caution.

Understanding the Emotional Workplace

Global employee wellbeing improved for the first time in three years. However, daily experiences of stress, anger, and sadness remain higher than pre-2020 levels.

This suggests that while there has been some recovery, employees are still figuring out a more demanding work environment. The report highlights that wellbeing improves when employees find their work purposeful and feel it contributes positively to others, highlighting the importance of purpose in shaping workplace experience.

South Asia Highlights

South Asia reflects some of the most pronounced shifts in this year’s findings:

• Engagement declined to 21%, marking a significant drop.
• Thriving levels remain the lowest globally at 16%.
• Daily sadness continues to be among the highest worldwide at 36%.
• Manager engagement saw a steep decline, dropping by eight points.

These trends suggest that structural changes, including reduced managerial layers, may be influencing employee experience. With fewer managers, employees may have less access to guidance and support, affecting both engagement and wellbeing.

India Highlights

India’s data reflects a mix of stability and ongoing challenges:

• Engagement stands at 23%, slightly above the regional average.
• Stress levels are reported at 26%, indicating continued workplace pressure.
• Thriving is at 17%, highlighting room for improvement in overall wellbeing.
• Anger is reported by 31% of employees.
• Job market optimism remains relatively strong at 53%.
• Daily sadness is reported at 36%.

These figures suggest that while employees remain connected to their work, their emotional experience may not always reflect the same level of positivity. This gap is important for organisations to address as they build long-term workforce strategies.

The State of the Global Workplace 2026 highlights that the future of work is as much about people as it is about technology.

As organisations continue to integrate AI and adapt to changing structures, there is a growing need to focus on how employees experience work on a daily basis. Supporting managers, improving engagement, and creating purposeful work environments will be key to managing this transition. The opportunity ahead lies in connecting technological progress with human needs, so that the evolution of work remains both impactful and resilient.

You can read the full report here.