Exclusive: Google report warns that only 5% of workers are AI fluent—and they’re likely losing raises and promotions as a result

In a study conducted with Ipsos and shared exclusively with Fortune, Google found that just two in five U.S. workers (40%) are even casually using AI on the job. Only 5% are considered “AI fluent,” meaning they’ve redesigned or reorganized significant portions of their work with the technology.

That gap appears to have real career implications. Workers who are AI fluent are 4.5x more likely to report higher wages and 4x more likely to report a promotion attributed to their ability to use AI, as compared with workers who are still in the early stages of using the technology.

But among those not using AI at work, the top barrier was relevance: 53% said they don’t think AI applies to what they do. Adoption also lags among small businesses, rural workers, and frontline employees—groups that could face the steepest climb as AI-driven productivity baselines rise.

While fears of immediate, widespread job replacement have cooled in recent months, Google’s data points to a possibility of workers being left behind if they are not properly trained. Just 14% of workers have been offered AI training by their employer in the last 12 months, and only 37% say that their organization provides guidance on AI use at work.

Fabien Curto Millet, Google’s chief economist, acknowledged it will take more time for AI to be integrated into day-to-day workflows—but warned that waiting has consequences.

“Failing to invest in training means running the risk of losing ground to competitors who are already reaping these rewards,” Curto Millet told Fortune. “Employers should consider what happens when their competitors are the ones achieving that kind of jump in quality and efficiency first.”

The race for AI fluency—and what it means for the workforce

The findings come more than three years after ChatGPT arrived—and a subsequent wave of generative AI tools, from Claude to Gemini to Copilot. In that time, corporate pressure to squeeze more productivity out of workers has only intensified.

Google’s CEO Sundar Pichai has pushed employees to move faster on AI adoption, arguing that the current moment demands staying ahead of the curve.

“Anytime you go through a period of extraordinary investment, you respond by adding a lot of headcount, right?” Pichai said, according to CNBC. “But in this AI moment, I think we have to accomplish more by taking advantage of this transition to drive higher productivity.”

Google is also placing a bet on more structured upskilling. The company is launching a new AI Professional Certificate, an eight-hour program focused on applying AI to research, content creation, and data analysis. Major companies, including Walmart, Colgate-Palmolive, and Deloitte are set to offer the certificate at no cost to their employees.

Donna Morris, Walmart’s chief people officer, told Fortune the company views AI as a shift that changes how work gets done—not a reason to sideline workers.

“We all have to change. That’s an ongoing need, but we all have the opportunity to lean into what that new future is,” Morris said. 

“I think new jobs will be created. I think new businesses will be created. I think the way we will do things will change. But that’s not to say that humans are going to be left behind.”

How Gen Z can get ahead in an AI-powered world

For young people staring down an uncertain job market future—and navigating an education system still scrambling to keep pace with workforce demands—Curto Millet’s advice is simple: learn AI aggressively, but don’t treat it as a substitute for human judgment.

“I encourage young people to gain experience and accumulate judgment as fast as they can— leaning into human skills that will remain invaluable going forward,” he said, adding that historically, young people are the ones that benefit the most from technological change.

That message was echoed by Matt Sigelman, president of the Burning Glass Institute, a workforce research organization that partnered with Google and Ipsos on the new report. Gen Z, he said, shouldn’t sideline foundational skills like critical thinking, empathy, and strategic decision-making—even as they sharpen their technical chops. The goal isn’t to compete with AI, but to use it as a force multiplier.

“While being able to vibe code some new spreadsheet tracker app is interesting and a good skills-building exercise, it’s unlikely to help you do your job bigger and better,” Sigelman told Fortune. “But using AI to help generate new ideas, prototype concepts, and automate manual work so you can focus on higher-value activities will be the key to thriving alongside an AI-supported workforce.”

And even as some employers hollow out entry-level roles, Curto Millet said companies shouldn’t miss what early talent can uniquely offer as a tech-native generation.

“If nothing else, I am routinely struck by how remarkably well versed young people are in AI,” Curto Millet said. “Organizations would do well to continue to secure young talent, who can then engage in ‘reverse mentorship’ and help upskill the organization in the most cutting edge ways to use AI.”