A global productivity reset is underway as AI, digital transformation and shifting economic pressures redefine how value is created across modern organisations.

The latest EY Megatrends analysis highlights a structural shift in how productivity is defined and delivered, signalling what the firm calls a global “productivity reset.” For decades, productivity has been measured through traditional inputs and outputs, often centred on physical production or linear processes. EY argues that this model is no longer fit for purpose as economies become increasingly digital, knowledge-driven and shaped by human-machine collaboration.

AI is the most visible catalyst, but EY stresses that the reset is being driven by a wider convergence of factors, including demographic shifts, regulatory complexity, supply-chain restructuring and rising energy and compute demands. Together, these forces are redefining what organisations need to compete and grow. Productivity is no longer about doing more, but about doing things better, with greater accuracy, relevance and impact.

This new landscape elevates the value of human judgement, creativity and problem-solving, paired with technologies that accelerate insight and decision-making. It also requires businesses to rethink their operating models, infrastructure and data foundations. Traditional measures of productivity will become increasingly inadequate, with new metrics emerging that capture outcomes, adaptability, quality of service, resilience and the speed at which organisations learn and respond.

For policymakers, EY warns that economic strategies must adapt to recognise the new forms of value being created in digital and service-led sectors. Talent development, digital skills, and the capacity of organisations to integrate AI responsibly will become central to national competitiveness.

The productivity reset presents both opportunity and risk. The organisations, and regions, that adapt fastest will gain an advantage. Those that do not may fall behind as value creation accelerates elsewhere.

The Takeaway:

Productivity is being redefined: future value will come from better decisions, smarter systems and stronger human-machine collaboration, not simply from doing more work.

Read the full EY Megatrend here.