Outdated digital tools are limiting AI’s full potential

AI is supposed to improve the way we work, simplifying processes, driving efficiency, and improving decision-making. But here’s the problem: most digital workplace tools just aren’t keeping up. A Lenovo report surveying 600 IT leaders shows that while 79% believe generative AI (Gen AI) will boost productivity, only 36% think their current tools support meaningful engagement. That’s a massive gap, and it means companies are bringing AI into outdated systems that weren’t designed for it.

The rapid development of large language models (LLMs) is pushing automation forward at an unprecedented pace. However, legacy digital tools weren’t built to handle this level of sophistication. AI can do much more than automate basic tasks, it can increase collaboration, encourage innovation, and create a smarter, more adaptive workplace. But if the foundational technology is clunky and inefficient, AI can’t reach its true potential.

For executives, this isn’t just an IT issue; it’s a business strategy problem. If companies are serious about unlocking AI’s full capabilities, they need to upgrade their digital infrastructure. That means moving beyond outdated enterprise tools and embracing systems that are designed to support advanced AI functionality. The ROI is clear: smarter workplace technology means more engaged employees, better decision-making, and a competitive edge.

The data backs this up. Lenovo’s report indicates that while IT leaders see AI as a game-changer, less than 50% believe their existing workplace tools improve productivity, engagement, or innovation. Businesses need to modernize.

“AI won’t drive meaningful results if it’s running on infrastructure that holds it back.”

Employee resistance and security concerns 

While business leaders see massive potential in Gen AI, employees are approaching it with skepticism. According to Lenovo’s report, 42% of employees worry AI will reduce their contributions, while 35% cite privacy, security, and ethics as major concerns. If companies don’t address these issues directly, adoption will stall, and AI’s value will remain untapped.

Employees see automation advancing rapidly, and without clear communication, many assume AI will replace them rather than improve their work. Business leaders need to shift the narrative. When implemented correctly, AI reduces repetitive tasks, so employees can focus on more meaningful, strategic work. Addressing this upfront is critical.

There’s also the security issue. AI systems process vast amounts of company and customer data, and if security measures aren’t prioritized, the risks increase. C-suite leaders must make sure that AI integration comes with robust data policies, including encryption, access controls, and transparent governance. Trust needs to be built at every level, starting with employees who work with AI daily.

For AI adoption to succeed, companies must take a proactive approach. That means clear policies on data security, open discussions on ethics, and a commitment to reskilling employees rather than replacing them. Leaders who approach this strategically will unlock AI’s benefits without losing workforce trust.

A comprehensive overhaul of the digital workplace is needed

AI has the potential to transform business operations, but most organizations aren’t ready to take full advantage of it. Lenovo’s report reveals that 89% of IT leaders believe businesses must first overhaul their digital workplace before AI can truly deliver on its promise. The reality is that AI won’t generate productivity gains if companies are still relying on outdated systems built for a pre-AI era.

The problem is the foundation that AI is being deployed on. Many organizations attempt to integrate AI into legacy environments that weren’t designed to support intelligent automation, adaptive workflows, or real-time data processing. These limitations prevent AI from being anything more than an improvement to existing processes, rather than a driver of real transformation. Business leaders need to recognize that to gain the full benefits of AI, a fundamental shift in digital infrastructure and workplace strategy is required.

This means redefining how work gets done. Companies need to move away from fragmented solutions and invest in digital ecosystems that support AI-driven productivity, innovation, and collaboration. That means smarter tools, smooth integrations, and systems that adapt to evolving workflows rather than forcing employees to work around inefficiencies.

Executives who act now will position their organizations ahead of the competition. AI is already reshaping industries, and companies that modernize their workplace technology accordingly will see the biggest gains. Those that fail to adapt risk falling behind, in AI adoption, and in overall business performance.

Reinventing workplace technology strategies

Too many organizations are using AI to optimize outdated processes rather than reinventing their approach to work. The Lenovo report lays out a clear strategy: personalize digital tools for employees, simplify workflows through AI-driven automation, and rethink how AI increases human capabilities to drive meaningful business outcomes. Companies that fail to take this broader approach will struggle to unlock AI’s full value.

Personalization is key. Employees work differently depending on their roles, skill sets, and tasks. AI should adapt to their needs, not force rigid structures that create inefficiencies. By using persona-based configurations, companies can ensure employees get the right tools, workflows, and IT support tailored to how they work, reducing friction and improving productivity.

AI automation also needs to go beyond basic efficiency gains. Instead of just speeding up existing processes, businesses should rethink how work gets done altogether. AI can anticipate potential disruptions, resolve issues before they escalate, and even optimize work environments in real-time. Companies that prioritize dynamic, AI-driven automation will gain a competitive edge by making operations faster, more responsive, and more intelligent.

Ultimately, AI should increase human potential. That means designing systems that support creativity, problem-solving, and collaboration. Organizations need to anticipate the changes AI brings, equip employees with the right skills, and create an adaptive workplace that encourages growth.

Linda Yao, Vice President of AI Solutions & Services Group at Lenovo, highlights the importance of digital transformation, noting that businesses need to focus on how employees stay productive and tailor AI solutions accordingly. Successful implementation requires leadership that understands both the technology and the people using it.

IT leaders are prioritizing improvements in digital employee experience

AI adoption means creating a workplace where employees can be more engaged and productive. IT leaders understand this, which is why 49% of them now rank improving the digital employee experience as their top priority for the coming year, according to Lenovo’s report. Recognizing that technology alone won’t drive success, they’re shifting their focus to how AI and digital tools can improve the way people work.

A poorly designed digital workplace leads to frustration, inefficiencies, and resistance to new technologies. When employees struggle with rigid systems, productivity stalls. AI has the potential to solve these issues, but only if it’s integrated in a way that prioritizes user experience, workflow adaptability, and seamless support. IT leaders are increasingly directing resources toward tools that reduce friction, automate routine tasks, and allow employees to focus on high-value work.

This change means creating an environment where AI actively supports employees without becoming an obstacle. That includes AI-powered IT support that detects and resolves issues before they disrupt workflows, adaptive systems that adjust to user needs, and platforms designed to drive collaboration rather than increase complexity.

Executives who invest in improving digital experiences now will see stronger AI adoption, better employee satisfaction, and ultimately higher productivity. IT leaders are setting the stage for the future of work. Businesses that take action early, focusing on both technology and how employees interact with it, will have a clear advantage in an AI-driven economy.

Key executive takeaways

  • Outdated digital tools are restricting AI’s potential: AI-driven productivity gains are being held back by legacy workplace tools. Leaders must modernize digital infrastructure to make sure AI increases engagement, collaboration, and innovation rather than being limited by outdated systems.
  • Employee resistance and security concerns slow AI adoption: 42% of employees fear AI will reduce their contributions, and 35% cite privacy, security, and ethical concerns. Executives must proactively address trust issues through transparency, clear policies, and workforce reskilling to drive AI acceptance.
  • A digital workplace overhaul is essential for AI success: 89% of IT leaders agree that AI can’t deliver its full value without significant upgrades to workplace technology. Companies that retool systems for AI-first operations will gain a competitive advantage in efficiency, agility, and innovation.
  • AI must be integrated strategically: Simply automating existing tasks is not enough, businesses must rethink workflows to maximize AI’s ability to enhance human capabilities. Leaders should focus on personalization, AI-driven problem solving, and adaptive workflows to unlock AI’s full potential.
  • IT leaders are prioritizing digital employee experience: 49% of IT leaders are making employee-focused digital improvements their top priority. Organizations investing in AI-powered workplace tools that reduce friction and increase engagement will see higher productivity and stronger AI adoption.

Alexander Procter

March 24, 2025

7 Min