Owl Labs, the first company to build AI-powered, 360-degree video conferencing solutions for hybrid organizations, today released new survey data that offers a look at the state of the workplace for the first half of 2025. Surveying more than 1,000 full-time knowledge workers across the United States, the data provides a pulse check on how AI is shaping our day to day office life, a look at the Gen Z worker, and much more. 

As companies adjust their in-office policies in 2025, employees are increasingly turning to AI tools to enhance their productivity and maintain work-life balance. With employee monitoring becoming more common and traditional perks like 'Summer Fridays' becoming less prevalent, technology is serving dual roles - helping companies track performance while empowering employees to adapt, especially those balancing work with family responsibilities. 

“The modern day office experience is powered by AI and tech, whether that’s employees using it to get more done, or managers overseeing through employee tracking software. For the first time, we’re seeing employees being actively encouraged to use AI, marking a major shift from just a year ago,” said Frank Weishaupt, CEO of Owl Labs. “At the same time, stricter return-to-office mandates are fueling anxiety, especially among younger workers and those juggling caregiving responsibilities. The data reveals what today’s workforce truly needs to thrive.”

The AI tide has officially turned - more than half of US companies (56%) now encourage using it on the job

In only two years, there has been a huge shift when it comes to AI usage in the workplace. In our 2023 data report, about 44% of employees said they believe AI will help them do their jobs faster and more effectively. Now, fast forward to 2025, and the majority of US companies (67%) are using AI in the workplace, while nearly half (46%) of employees are not just using it but say they are either heavily or somewhat reliant on it at work. 

Over half of workers say their employer encourages the use of AI at work. Nearly a quarter (24%) report strong support, complete with tools, training, and clear guidelines, while another 32% get access with at least some direction. Only 4% say AI use is discouraged at all.

AI is making office life easier for many, with employees using it most for administrative tasks like scheduling and calendar management (35%), crunching data (33%), and whipping up content like emails and reports (30%). The reliance on AI increases in younger generations, with 70% of Gen Z employees and 59% of millennials saying they are reliant on it at work. A further 36% said that while they were not reliant they still use it occasionally for select tasks.  

AI is becoming so integral to the day to day of the workplace that people have fears about their jobs. More than half (52%) of employees are concerned about their job or career due to AI integration. The biggest fears include: reduced job stability and/or potential layoffs (17%), the need to learn new skills or retrain to stay competitive (15%) and fewer opportunities for career growth (13%). Gen X (51%) and Boomers (61%) are the least concerned about this, which may stem from the fact that they will retire sooner than younger generations. 

More than half of US companies are monitoring employees with tracking software, with Gen Z and Millennials under the closest watch

Tech and AI are not just helping employees, they are also being used by employers to see what’s happening among workers. The majority (53%) of US employees said that their organization now uses some form of employee tracking software, which is up from 46% who reported the addition or increased use of employee tracking software in our 2024 State of Hybrid Work Report. 

Younger generations are being monitored the closest, with a whopping 80% of Gen Z and 64% of millennials say their employers use monitoring software. Only about a quarter (26%) report no monitoring at all, while many are either unsure it’s happening (20.5%) or don’t know what’s being tracked (12.8%).

Employers generally want to know when people are working, as login/logout times (30%) are the most heavily monitored followed by number of meetings (16%), screen or mouse movement (15%), and even keyboard usage (15%).

The once prevalent Summer Fridays offering is fading fast, while employees crave additional flexibility in the summer months 

Employees are being asked to do more with less, are being monitored and under increased pressure, and as a result are craving a reprieve from it all. Especially as the months get warmer, they want flexibility.  Our data found that employees’ most valued forms of flexibility in the summer months are: half-days on Fridays (33%), flexible daily start and end times (28%), and having Friday off completely (27%). 

Unfortunately, Summer Fridays are fading fast. Just 1 in 3 U.S. workers still get them - and it’s mostly the younger crowd cashing in. Over half of Gen Z (54%) and 43% of millennials say they’ve had Summer Fridays, compared to far fewer older workers.

Looking ahead to 2025, only 21% expect the same sweet perk as before (early leave or full day off), while another 12% say the offering is being scaled back. The summer slowdown might be slowing down for good.

More than half of employees (57%) say it’s time for companies to step up with better support and flexibility for caregiving - whether it’s kids or aging parents

Juggling work and caregiving is the norm for many, but it’s especially surprising to see that number so high for younger workers. Right now, 34% of U.S. employees are balancing childcare or eldercare, with that number jumping to 48% for Gen Z and 51% for millennials. Two-thirds (66%) of caregivers worry that it is affecting their job performance.

Caregivers are looking for more support than they're currently getting: 57% of workers think employers should step up with better strategies or more flexibility. That sentiment is even stronger among Gen Z (79%) and millennials (60%). Still, 34% believe all employees should be treated the same, no matter their responsibilities outside of work.

Return-to-office mandates are driving talent away - many employees whose companies implemented in-office mandates (66%) are now job hunting as a result 

Return-to-office mandates are now stronger than ever. Nearly half (47%) of U.S. workers say their employer has rolled out or ramped up in-office requirements this year, with Gen Z (82%) and hybrid workers (60%) feeling it the most.

The most common mandate is a full five days a week (19%), followed by a three-day schedule (10%). 7% of workers have been mandated to come into the office two days per week, while 6% have been told four days and 5% have been told one day. In-office mandates are all over the map, but many companies have one thing in common - flexibility is starting to fade.

Not everyone is happy about the comeback. While 37% of workers feel good about in-office mandates and think it will boost productivity, and 38% say they don’t mind, frustration is bubbling under the surface - 16% are openly unhappy, and a whopping 66% are job hunting because of it.

Younger workers are leading the exodus: 84% of Gen Z and 79% of millennials are looking for more flexible gigs. But landing those roles isn’t guaranteed - 31% say flexible jobs are easy to find, while 24% say it’s a struggle. 

The ‘Meeting Tax’ is getting costly - 43% of employees have ditched in-office tech for hybrid meetings at some point out of sheer frustration 

Hybrid meetings are the new norm, with eight in ten meetings now being hybrid, according to our data. However, the setup is not so smooth. Workers waste valuable time just getting these meetings off the ground, whether it’s hunting for the right link, rounding up the team, or battling tech glitches. In fact, 43% have given up entirely on using in-office tech because of the setup frustrations.

Tech headaches are a huge time-suck - especially for younger workers. Gen Z is the most frustrated (78%), followed by millennials (52%), many of whom end up using their own devices to avoid the hassle.

On average, 28% of employees are spending 3-6 minutes setting up hybrid meetings, and 12% are clocking in over ten minutes. Only 13% say they never waste time on setup, with that number rising among Gen X (16%) and boomers (18%), likely relying on younger colleagues to handle the tech. 

For more future of work data, see Owl Labs’ most recent annual State of Hybrid Work report. Contact press@owllabs.com with any questions or inquiries.