There's a pretty intense debate going on over the impact of AI on work. Some researchers have pointed to the lack of convincing use cases for AI in many industries and occupations. Others have pointed to the need for transforming workplaces if the introduction of AI is to result in markedly higher levels of productivity, saying this process will be relatively slow.

Microsoft say that AI is emerging as a true assistant—an active collaborator that is fundamentally reshaping how enterprises operate. Their recent Work Trends Report introduces the concept of the “Frontier Firm,” a new organizational archetype where hybrid teams of AI agents and humans work in tandem to meet the escalating demand for on-demand intelligence (See diagram above). They claim 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, Microsoft predicts, every organization is expected to begin the journey toward becoming a Frontier Firm.

This could be treated as more AI hype and given Microsoft has made huge investments in Generative AI they have an interest in doing so. But it could also be taken as a reflection of changing forms of work organisation - an likely new skills demands - with the adoption of AI powered agents.