Connect with us

Business

Why success with AI requires elevating workplace relationships

Published

on



AI is finally delivering the productivity gains long promised. But something else is quietly slipping away: our connection to one another. While many conversations about AI fixate on job loss, new research from the Upwork Research Institute reveals a more immediate and underrecognized risk. AI is accelerating output, but at an emotional and relational cost, pointing to a growing lack of trust and clarity from leadership.

The hidden cost of AI-driven productivity

Upwork’s global survey of 2,500 C-suite executives, employees, and freelancers confirms what many leaders have hoped for: AI delivers measurable results. Employees report a 40% boost in productivity, and 77% of C-suite leaders say they’re already seeing productivity gains from AI adoption in the past year.

But the workers who report the highest productivity gains due to AI are also the most at risk. Among top AI performers, 88% report feeling burned out, and they’re twice as likely to consider quitting. Many of them also feel disconnected from their organization’s broader AI strategy, as 62% say they don’t understand how their daily use of AI aligns with company goals.

This disconnect poses a critical leadership challenge. Without thoughtful integration, even the most promising technologies can undermine team cohesion and well-being. It’s not enough to adopt AI; we must redesign work systems that support the humans behind the gains.

The emotional fallout is striking. Among top AI users, 67% say they trust AI more than their coworkers, and 64% say they have a better relationship with AI than with human teammates. A full 85% say they’re more polite to AI than to people.

The very tools accelerating productivity are eroding the social fabric that sustains it.

How efficiency set the stage for disconnection

For decades, we’ve optimized work for speed and scale—streamlining operations, cutting meetings, flattening teams, and replacing dialogue with dashboards. AI fits seamlessly into this model, delivering more output with even less friction.

But in the process, we’ve stripped away much of the relational glue that holds teams together. Onboarding is rushed. Training budgets shrink. Managerial spans stretch. Real conversations are replaced by templated guidance, and the space to say “I don’t know” quietly disappears.

Into that void steps AI: tidy, responsive, nonjudgmental. It listens, summarizes, and never interrupts. No wonder workers speak to it more politely than to their peers.

For overworked employees, AI becomes a psychologically safe place to think aloud. It’s no surprise that therapy and companionship are now among its top use cases.

At first glance, this may seem harmless. But when synthetic understanding begins to replace real human connection, the impact extends beyond individual well-being to innovation, trust, and team performance.

How independent talent is modeling a better path

In contrast to full-time employees, freelancers appear to be navigating AI adoption with greater agency and resilience. Nearly 9 in 10 freelancers say AI has positively impacted their work, and 42% credit it with helping them specialize in a niche. Most use AI as a learning partner, with 90% saying it helps them acquire new skills faster.

By comparison, only 30% of full-time employees say AI has helped them take on new projects—and far fewer report benefits like better pay, faster promotions, or improved job opportunities.

This gap points to a core insight: Agency, trust, and autonomy matter. When people have control over how they use AI, they use it to grow, not just to go faster.

And demand for AI-literate talent is accelerating. On Upwork, searches for professionals skilled in working with AI agents have surged nearly 300% in the past six months. Independent professionals, by necessity, have developed healthier models of augmentation, using AI to amplify their value without eroding their human connections. Our data shows that 71% of AI use by freelancers on Upwork is focused on augmentation, not automation, highlighting a strong preference for human-AI collaboration.

Flexible talent ecosystems and psychologically safe environments aren’t perks; they’re prerequisites for sustainable performance.

How to redesign work for connection

To counter AI’s quiet displacement of human connection, leaders must move beyond tech adoption to intentional work redesign—one that puts relationships back at the center.

It starts by designing for reciprocity, not just efficiency. Leaders should examine critical workflows and look for where human interaction has been stripped out in favor of speed. Have mentorship opportunities been replaced by templated guidance? Are there still spaces for team reflection or open feedback, or have those moments been optimized away? Rebuilding intentional touchpoints—where people listen, respond, and learn from each other—will be key to sustaining collaboration in an AI-powered workplace.

At the same time, we need to rebuild the role of the manager. Many managers today are spread too thin, overseeing too many direct reports with too few tools or time to coach effectively. If we want teams to grow and thrive, leaders need the bandwidth and structure to focus on development, not just delivery. That may mean rethinking spans of control, investing in manager training, or giving them explicit permission to slow down and connect. Starbucks is a great example here. It’s actively investing and bringing in more assistant managers to its stores so that leaders can better serve their customers and employees.

We must also measure what matters. Connection won’t flourish if it’s invisible. Metrics like psychological safety, peer trust, and collaboration frequency should be tracked with the same rigor as throughput and KPIs. What you measure signals what you value—and employees notice. Microsoft provides a great case study, choosing to measure and develop human thriving, rather than engagement, emphasizing the role of relationships and connections in one’s role.

Incorporating hybrid talent models can help as well. Freelancers and independent professionals are modeling healthy AI adoption in real time. Embedding them through flexible partnerships can help transfer sustainable behaviors and norms. Already, 48% of business leaders on Upwork say they’re engaging freelancers to support AI transformation efforts.

AI can drive connection—if we let it

The biggest risk of AI isn’t job loss; it’s relational loss. People aren’t quitting because they fear automation. They’re quitting because they feel unseen, unsupported, and increasingly alone.

Organizations that want to retain their most productive workers must go beyond tools and training to foster connection, support, and alignment.

If we allow AI to replace not just tasks but trust, we’ll see short-term gains followed by long-term erosion: rising attrition, faltering innovation, and teams that turn inward rather than toward each other.

But if we design work intentionally—so that AI augments human strengths instead of replacing them—we can create a future where technology doesn’t diminish connection, but deepens it.

The future of sustainable productivity isn’t just AI + human. It’s AI + human + intentional work redesign.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

Read more:



Source link

Continue Reading

Business

SpaceX to offer insider shares at record-setting $800 billion valuation

Published

on



SpaceX is preparing to sell insider shares in a transaction that would value Elon Musk’s rocket and satellite maker at as much as $800 billion, people familiar with the matter said, reclaiming the title of the world’s most valuable private company. 

The details, discussed by SpaceX’s board of directors on Thursday at its Starbase hub in Texas, could change based on interest from insider sellers and buyers or other factors, said some of the people, who asked not to be identified as the information isn’t public. SpaceX is also exploring a possible initial public offering as soon as late next year, one of the people said. 

Another person briefed on the matter said that the price under discussion for the sale of some employees and investors’ shares is higher than $400 apiece, which would value SpaceX at between $750 billion and $800 billion. The company wouldn’t raise any funds though this planned sale, though a successful offering at such levels would catapult it past the record of $500 billion valuation achieved by OpenAI in October.

Elon Musk on Saturday denied that SpaceX is raising money at a $800 billion valuation without addressing Bloomberg’s reporting on the planned offering of insiders’ shares. 

“SpaceX has been cash flow positive for many years and does periodic stock buybacks twice a year to provide liquidity for employees and investors,” Musk said in a post on his social media platform X. 

The share sale price under discussion would be a substantial increase from the $212 a share set in July, when the company raised money and sold shares at a valuation of $400 billion. The Wall Street Journal and Financial Times earlier reported the $800 billion valuation target.

News of SpaceX’s valuation sent shares of EchoStar Corp., a satellite TV and wireless company, up as much as 18%. Last month, EchoStar had agreed to sell spectrum licenses to SpaceX for $2.6 billion, adding to an earlier agreement to sell about $17 billion in wireless spectrum to Musk’s company.

Subscribe Now: The Business of Space newsletter covers NASA, key industry events and trends.

The world’s most prolific rocket launcher, SpaceX dominates the space industry with its Falcon 9 rocket that lifts satellites and people to orbit.

SpaceX is also the industry leader in providing internet services from low-Earth orbit through Starlink, a system of more than 9,000 satellites that is far ahead of competitors including Amazon.com Inc.’s Amazon Leo.

Elite Group

SpaceX is among an elite group of companies that have the ability to raise funds at $100 billion-plus valuations while delaying or denying they have any plan to go public. 

An IPO of the company at an $800 billion value would vault SpaceX into another rarefied group — the 20 largest public companies, a few notches below Musk’s Tesla Inc. 

If SpaceX sold 5% of the company at that valuation, it would have to sell $40 billion of stock — making it the biggest IPO of all time, well above Saudi Aramco’s $29 billion listing in 2019. The firm sold just 1.5% of the company in that offering, a much smaller slice than the majority of publicly traded firms make available.

A listing would also subject SpaceX to the volatility of being a public company, versus private firms whose valuations are closely guarded secrets. Space and defense company IPOs have had a mixed reception in 2025. Karman Holdings Inc.’s stock has nearly tripled since its debut, while Firefly Aerospace Inc. and Voyager Technologies Inc. have plunged by double-digit percentages since their debuts.

SpaceX executives have repeatedly floated the idea of spinning off SpaceX’s Starlink business into a separate, publicly traded company — a concept President Gwynne Shotwell first suggested in 2020. 

However, Musk cast doubt on the prospect publicly over the years and Chief Financial Officer Bret Johnsen said in 2024 that a Starlink IPO would be something that would take place more likely “in the years to come.”

The Information, citing people familiar with the discussions, separately reported on Friday that SpaceX has told investors and financial institution representatives that it’s aiming for an IPO of the entire company in the second half of next year.

Read More: How to Buy SpaceX: A Guide for the Eager, Pre-IPO

A so-called tender or secondary offering, through which employees and some early shareholders can sell shares, provides investors in closely held companies such as SpaceX a way to generate liquidity.

SpaceX is working to develop its new Starship vehicle, advertised as the most powerful rocket ever developed to loft huge numbers of Starlink satellites as well as carry cargo and people to moon and, eventually, Mars.



Source link

Continue Reading

Business

National Park Service drops free admission on MLK Day and Juneteenth while adding Trump’s birthday

Published

on



The National Park Service will offer free admission to U.S. residents on President Donald Trump’s birthday next year — which also happens to be Flag Day — but is eliminating the benefit for Martin Luther King Jr. Day and Juneteenth.

The new list of free admission days for Americans is the latest example of the Trump administration downplaying America’s civil rights history while also promoting the president’s image, name and legacy.

Last year, the list of free days included Martin Luther King Jr Day and Juneteenth — which is June 19 — but not June 14, Trump’s birthday.

The new free-admission policy takes effect Jan. 1 and was one of several changes announced by the Park Service late last month, including higher admission fees for international visitors.

The other days of free park admission in 2026 are Presidents Day, Memorial Day, Independence Day, Constitution Day, Veterans Day, President Theodore Roosevelt’s birthday (Oct. 27) and the anniversary of the creation of the Park Service (Aug. 25).

Eliminating Martin Luther King Jr. Day and Juneteenth, which commemorates the day in 1865 when the last enslaved Americans were emancipated, removes two of the nation’s most prominent civil rights holidays.

Some civil rights leaders voiced opposition to the change after news about it began spreading over the weekend.

“The raw & rank racism here stinks to high heaven,” Harvard Kennedy School professor Cornell William Brooks, a former president of the NAACP, wrote on social media about the new policy.

Kristen Brengel, a spokesperson for the National Parks Conservation Association, said that while presidential administrations have tweaked the free days in the past, the elimination of Martin Luther King Jr. Day is particularly concerning. For one, the day has become a popular day of service for community groups that use the free day to perform volunteer projects at parks.

That will now be much more expensive, said Brengel, whose organization is a nonprofit that advocates for the park system.

“Not only does it recognize an American hero, it’s also a day when people go into parks to clean them up,” Brengel said. “Martin Luther King Jr. deserves a day of recognition … For some reason, Black history has repeatedly been targeted by this administration, and it shouldn’t be.”

Some Democratic lawmakers also weighed in to object to the new policy.

“The President didn’t just add his own birthday to the list, he removed both of these holidays that mark Black Americans’ struggle for civil rights and freedom,” said Democratic Sen. Catherine Cortez Masto of Nevada. “Our country deserves better.”

A spokesperson for the National Park Service did not immediately respond to questions on Saturday seeking information about the reasons behind the changes.

Since taking office, Trump has sought to eliminate programs seen as promoting diversity across the federal government, actions that have erased or downplayed America’s history of racism as well as the civil rights victories of Black Americans.

Self-promotion is an old habit of the president’s and one he has continued in his second term. He unsuccessfully put himself forwardfor the Nobel Peace Prize, renamed the U.S. Institute of Peace after himself, sought to put his name on the planned NFL stadium in the nation’s capital and had a new children’s savings program named after him.

Some Republican lawmakers have suggested putting his visage on Mount Rushmore and the $100 bill.



Source link

Continue Reading

Business

JPMorgan CEO Jamie Dimon says Europe has a ‘real problem’

Published

on



JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon called out slow bureaucracy in Europe in a warning that a “weak” continent poses a major economic risk to the US.

“Europe has a real problem,” Dimon said Saturday at the Reagan National Defense Forum. “They do some wonderful things on their safety nets. But they’ve driven business out, they’ve driven investment out, they’ve driven innovation out. It’s kind of coming back.”

While he praised some European leaders who he said were aware of the issues, he cautioned politics is “really hard.” 

Dimon, leader of the biggest US bank, has long said that the risk of a fragmented Europe is among the major challenges facing the world. In his letter to shareholders released earlier this year, he said that Europe has “some serious issues to fix.”

On Saturday, he praised the creation of the euro and Europe’s push for peace. But he warned that a reduction in military efforts and challenges trying to reach agreement within the European Union are threatening the continent.

“If they fragment, then you can say that America first will not be around anymore,” Dimon said. “It will hurt us more than anybody else because they are a major ally in every single way, including common values, which are really important.”

He said the US should help.

“We need a long-term strategy to help them become strong,” Dimon said. “A weak Europe is bad for us.”

The administration of President Donald Trump issued a new national security strategy that directed US interests toward the Western Hemisphere and protection of the homeland while dismissing Europe as a continent headed toward “civilizational erasure.”

Read More: Trump’s National Security Strategy Veers Inward in Telling Shift

JPMorgan has been ramping up its push to spur more investments in the national defense sector. In October, the bank announced that it would funnel $1.5 trillion into industries that bolster US economic security and resiliency over the next 10 years — as much as $500 billion more than what it would’ve provided anyway. 

Dimon said in the statement that it’s “painfully clear that the United States has allowed itself to become too reliant on unreliable sources of critical minerals, products and manufacturing.”

Investment banker Jay Horine oversees the effort, which Dimon called “100% commercial.” It will focus on four areas: supply chain and advanced manufacturing; defense and aerospace; energy independence and resilience; and frontier and strategic technologies. 

The bank will also invest as much as $10 billion of its own capital to help certain companies expand, innovate or accelerate strategic manufacturing.

Separately on Saturday, Dimon praised Trump for finding ways to roll back bureaucracy in the government.

“There is no question that this administration is trying to bring an axe to some of the bureaucracy that held back America,” Dimon said. “That is a good thing and we can do it and still keep the world safe, for safe food and safe banks and all the stuff like that.”



Source link

Continue Reading

Trending

Copyright © Miami Select.