Microsoft’s 2025 Work Trend Index reveals the latest findings in AI workplace adoption and predictions for the future
- Emerging capacity crisis: 84% of the region’s workforce reports lacking sufficient time or energy for their work, highlighting the urgent need for AI solutions
- APAC leads global adoption: 53% of APAC leaders are already using AI agents to fully automate business processes – the highest rate worldwide and 7% above the global average
- Confidence in AI transformation: 84% of APAC leaders express confidence in using agents to expand workforce capacity within the year
- Mindset advantage: Unlike other regions, APAC employees predominantly view AI as a thought partner (52%) rather than just a command-based tool (47%)
Asia Pacific, 29 April 2025 – New data released today from Microsoft’s 2025 Work Trend Index reveals how the rise of AI-driven intelligent agents is redefining the traditional organizational chart and transforming knowledge work across every job level – from the C-suite to frontline workers.
The latest data exposes a widening capacity gap, with 61% of APAC leaders saying productivity must increase, but 84% of the region’s workforce – both employees and leaders – saying they lack enough time or energy to do their work. This is supported by Microsoft 365 telemetry data, which shows that on average, employees are interrupted every 2 minutes by meetings, emails, or pings.
However, with the rise of agents that can reason, plan, and act as digital labor, roles and organizations will reshape to scale capacity as needed. Already, 85% of APAC leaders say this is a pivotal year to rethink core strategies and operations, while 84% are confident in using agents to expand workforce capacity in the next 12-18 months – both above the global average.
“Asia Pacific has surpassed the rest of the world on digital transformation – and the WTI confirms this,” said Rodrigo Kede Lima, President of Microsoft Asia. “Leaders here are taking bold action: scaling AI capabilities while simultaneously preparing their workforce to collaborate effectively with intelligent agents.”
Leaner Teams, Higher Impact
As AI continues to democratize access to expertise, the data shows an evolution from rigid and hierarchical organizational charts to more fluid “Work Charts”, where teams are formed around outcomes rather than siloed functions like marketing or finance – mirroring a model typically used on movie production sets today.
With agents acting as research assistants, analysts, or creative partners, companies can deploy lean, high-impact teams on demand. In fact, more than half of APAC leaders (53%) are already using agents to fully automate workstreams or business processes – higher than any other region in the world, and well-above the global average of 46%.
But to maximize impact, organizations need to achieve the right ratio of human and digital labor for specific tasks. The report highlights that employees in APAC turn to AI not to replace human value, but to access capabilities humans can’t provide: 24/7 availability (38%), machine-driven speed and quality (31%), and unlimited ideas on demand (30%).
Particularly striking is APAC’s mindset advantage: 52% of employees in the region already treat AI as a thought partner rather than a command-based tool (47%) – a reverse of the global trend and a powerful indicator of the region’s readiness for AI collaboration.
The Rise of The Frontier Firm
The report points to the emergence of Frontier Firms – a new type of organization powered by hybrid teams of humans and agents – as proving what’s possible by scaling faster, moving with greater agility, and creating value in new ways. Workers and leaders at these Frontier Firms are more than twice as likely to say their companies are thriving and that they can take on additional work. They are also more likely to report having opportunities to do meaningful work.
Within the next two to five years, every organization is expected to begin the journey toward becoming a Frontier Firm. 43% of APAC leaders say expanding capacity with digital labor is a top priority in the next 12-18 months, second only to upskilling (46%). Beyond agents, 82% of APAC leaders also say their company is considering adding new AI-focused roles to prepare for the future, such as AI agent specialists, AI trainers and AI workforce managers.
AI Skills Now a Top Priority
Both leaders and employees in APAC lead other regions in terms of their familiarity with AI agents. Nonetheless, countering last year’s findings, which showed employees leading in AI adoption, this year business leaders are ahead of the curve. 74% of APAC leaders report being highly familiar with AI agents, compared to just 48% of employees.
To bridge this gap, 52% of APAC managers expect AI training or upskilling to become a core responsibility for their teams in the next five years. Within the same period, APAC leaders have greater expectations than global peers that their team’s scope will expand to include redesigning business processes with AI (42%), building multi-agent systems to automate complex tasks (47%), as well as training and managing agents (44% and 41% respectively).
Looking Ahead
The findings suggest APAC’s early adoption of AI agents could translate into significant competitive advantages over the next decade. From the boardroom to the front line, success will increasingly depend on thinking like the CEO of an agent-powered startup – skillfully delegating to and managing teams of specialized AI agents.
“With so many organisations in APAC already investing in AI agents, those who delay risk falling behind,” said Tim Sheedy, Vice President of Research at Ecosystm, a technology research firm. Commenting on what organizations should do to stay ahead, he said: “Start by improving your ‘AI Quotient’ by equipping employees with the skills to leverage AI today and explore new possibilities tomorrow. Begin with simple agents that enhance daily tasks and focus on well-governed data sets to achieve early wins, before scaling to more complex, cross-functional AI solutions”.
Organizations embracing the Frontier Firm model are positioned to outperform traditional competitors in innovation speed, operational efficiency, and talent attraction. “What we’re witnessing isn’t simply technology adoption – it’s a fundamental reimagining of work,” adds Kede Lima. “And APAC is writing the playbook that the rest of the world will likely follow.”
Read the 2025 Work Trend Index on Worklab or visit the Microsoft blog and Microsoft 365 Blog to learn more. For all WTI blogs, videos, and assets, please visit our microsite.
*Asia Pacific markets in the study include Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.
About Work Trend Index
The Work Trend Index survey was conducted by an independent research firm, Edelman Data x Intelligence, among 31,000 knowledge workers across 31 countries between 6 February 2025 and 24 March 2025. This survey was 20 minutes in length and conducted online, either in the English language or translated to local languages across markets. In addition to survey data, qualitative insights were derived from conversations with AI-native startups, economists, futurists, scientists, and academics. These insights were enriched by a broader review of existing literature on AI’s impact on the workplace.
About Microsoft
Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
