In this episode of ‘The Future of Work,’ Mark Dixon, CEO, IWG, explains how artificial intelligence is changing the workplace, cutting costs, and redefining the future of jobs.
00:00 – AI Adoption in the Workplace
00:06 – Balancing Growth and Costs
02:03 – AI CapEx and ROI
02:28 – Customer Communication Improvements
04:37 – Redeploying Staff
05:16 – CFO Budget Cuts
06:15 – Future of Work
07:35 – Advice for Business Leaders
08:52 – Impact on Jobs
Transcript:
Caroline Woods:
What’s the number one reason companies are adopting AI in the workplace?
Mark Dixon:
Well, for ourselves, it’s about speed and better customer service. It’s about automation and lower costs. There are a lot of drivers for AI adoption. We’ve got nine million customers — it makes sense. You need to get computerized. We’ve been doing it for a while, and now we’re investing a lot more in it.
Caroline Woods:
Your latest CEO/C-suite 2026 outlook shows that CEOs are optimistic, but very focused on costs. How are companies balancing growth while being mindful of the bottom line?
Mark Dixon:
It’s a tough challenge to save costs while growing. Companies are saying: if I’m going to adapt and develop my business, I’m going to do it quicker.
Business development and innovation cycles are much shorter. Companies want to innovate fast and fail fast — that’s being adopted widely. That’s number one.
Number two, they’re confident but aware of volatility. They’re keeping costs under control and flexible. They outsource as much as possible, make everything variable where they can, and stay agile. They avoid heavy capital-intensive projects. So be capital-light, flexible, invest in the right things, and get results quickly.
Caroline Woods:
We talk a lot about CapEx, especially with hyperscalers. I would think adopting AI would be capital intensive.
Mark Dixon:
No, not really. It’s actually very good value. We’ve been amazed by the investment required and the returns you can get. It’s still in its infancy, but ROI is very attractive for any company.
Caroline Woods:
Are companies actually seeing that return?
Mark Dixon:
Yes, absolutely. It’s a key part of our strategy. It doesn’t work well for very small companies, but for scaled-up businesses, cost savings and improvements in customer engagement are significant. These benefits — for relatively low tech investment compared to the returns — make it very compelling.
Caroline Woods:
Talk to me about how your communications with customers are improving with AI. Some people get frustrated when redirected to a bot instead of a person.
Mark Dixon:
That’s what people say, but the reality is different. Bots work 24/7, don’t get answers wrong, and resolve issues quickly. You can’t use a bot for every job, but for the right ones, you get much better outcomes.
Simple things like “I don’t understand my invoice” — bots are very good at explaining it. I’ve seen them answer ten customer questions in a row logically. They’re outstanding.
Another use is scheduling. We have AI tools looking at weather, train times, and multiple databases to determine how many people we need in a location at a specific time. They scan everything and give the right results immediately. That speed is what AI provides.
Caroline Woods:
Those jobs were done by people before. What are those people doing now?
Mark Dixon:
Actually, they weren’t done by many people — maybe a couple — and not very well. Now, we get better customer service with the right people in the right place at the right time. We don’t have more people, but outcomes are much better. It’s a more efficient use of people, who are a major cost for our business.
Caroline Woods:
Let’s bring it back to the C-suite survey. CFOs are trimming budgets by about 10% on average. Is that higher than in previous years?
Mark Dixon:
They probably do that every year. Every year, we look to cut our budget by 10% to become more efficient. The real challenge is finding the savings. CFOs must get more creative: How can you be more efficient? How can you make people more productive? How can you automate processes to reduce leakage? You won’t get 10% just by cutting a bit here and there.
Caroline Woods:
Five years from now, what do you see for the future of work?
Mark Dixon:
It’s going to be so digital you wouldn’t recognize it. Think Amazon — no one imagined warehouses delivering everything to your door. My daughters order from Amazon several times a day. That transformation changed retail — and work will change the same way.
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