A new survey of 3,000 professionals demonstrates the potential real-world impact of this new technology.  

By Gillian Manning 

The workplace is at an inflection point, according to a new report by Beautiful.ai, an AI-powered presentation software company. The third annual survey of thousands of American managers found that a growing number see the upside of replacing their team with AI.  

In 2025, 21% of managers believed multiple employees could be replaced by AI and the team would still be fine; 37% said the same in 2026. While increased productivity and efficiency are reportedly the primary goal of using AI in the workplace, according to managers, 42% also say they believe that swapping a significant portion of their workforce for AI tools would be a smart financial move—a 12% jump from the previous year. Meanwhile, 37% of leaders oppose the idea, and 21% are undecided. 

The three main takeaways from the survey include the following. 

  • Compensation is under pressure, as 45% of managers believe it will push down salaries. 
  • Job displacement is gaining acceptance, as 42% say large-scale replacement could be financially advantageous. 
  • AI is now core infrastructure, as 72% use it to assist with employee management at least weekly, and the daily increase of AI tools has increased 16% from 2025 to 2026.  

“The economics of work are shifting quickly, but this is a moment to redefine where we all create the most value,” says Jason Lapp, CEO of Beautiful.ai. “As AI takes on routine tasks, human judgment, creativity, and leadership become more important, not less.” 

Other key findings are: 

  • 58% of managers rate AI’s output as at least equal to that of an experienced manager or better; 
  • 43% don’t think that AI can replace teams of people; and 
  • 32% of managers said their biggest concern about AI is fear of the unknown, down 8% from last year.  

Looking to dive deeper? We keep an ever-growing archive of HRO Today Association member webinars. Watch now: “AI in Performance Management: What’s Real, What’s Ready, and What’s Still Risky.”

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