Ponderable of the day: Is your organization ready to become a Frontier Firm?

According to Microsoft WorkLab, the future of work has just arrived.

Earlier this week, Microsoft published its 2025 Work Trend Index Annual Report. This combines survey data from 31,000 workers across 31 countries in addition to trillions of Microsoft 365 productivity signals, LinkedIn hiring and labour trends, as well as expert insights in order to give employees and business leaders a comprehensive view of the work landscape. 

The report sets forth the idea that embracing AI isn’t just about technology. It’s about reimagining how we work, lead and grow. It further asserts that organizations need to transform into Frontier Firms as a way of framing just what those workplaces and work structures need to be inside of the next 2–5 years.  

Question of the day for you is: Is your organization ready to become a Frontier Firm?

The journey to becoming a Frontier Firm

The report identifies three phases for an organization’s transformation into a Frontier Firm. Phase 1 involves employees interacting with AI assistants to work more efficiently. In phase 2, humans use AI agents, which function as more of a ‘digital colleague’, carrying out tasks under human direction and freeing up their time. By phase 3 humans are working with a team of AI agents, which can run entire business processes and workflows.

The report goes on to say that this evolution of AI into knowledge work will mimic how AI-enabled software development has progressed from general assistance in coding to chat interfaces, then on to being agents that can carry out the task on the user’s behalf.

Ten key takeaways for digital workplace leaders

In Reader’s Digest fashion, here are 10 key takeaways for digital workplace leaders and their teams:

1. 2025 is the year of the #FrontierFirm: organizations powered by AI agents and human collaboration, redefining how work gets done.
2. ‘Intelligence on tap’ is here – AI is now an on-demand utility, transforming expertise from something you hire to something you access instantly.
3. 82% of leaders say this is a pivotal year to rethink strategy and operations for the AI era.
4. Hybrid human – AI teams are the new normal, with AI agents acting as digital colleagues to boost productivity and scale capacity.
5. 68% of employees feel overwhelmed by work pace and volume – AI is key to bridging the capacity gap and reducing burnout.
6. The journey to becoming a Frontier Firm has three phases: AI as assistant, AI as digital colleague, and AI autonomously managing processes.
7. ‘Agent boss’ is the new role for everyone – managing, delegating to and collaborating with AI agents.
8. Frontier Firms are scaling faster, adapting with agility, and generating value at unprecedented speed thanks to AI.
9. 71% of workers at Frontier Firms say their company is thriving – nearly double the global average.
10. Within 2–5 years, every organization will be on the journey to becoming a Frontier Firm – are you ready to lead the change?

What questions should digital workplace leaders ask themselves?

In reading what feels a lot like a manifesto, digital workplace leaders should ask themselves and their organizations some key starter questions based on the report’s major themes:

Intelligence on tap

• How are we scaling digital labour?
• Are we redesigning work, not just adding AI to old workflows?

Becoming a Frontier Firm

• Where are we on the AI adoption curve?
• Are we investing in new roles and skills?

Human-agent teams

• What’s the optimal human–agent ratio?
• Are we building dynamic, outcome-driven teams?

Agent boss mindset

• Are we closing the leader–employee AI skills gap?
• Are employees ready to manage agents?

Culture & strategy

• Are we fostering agility and transparency?
• How are we measuring and communicating the impace of AI?

Microsoft’s report urges leaders to move beyond incremental AI adoption and fundamentally rethink how work gets done. The most successful organizations will go beyond and ask deeper, tougher questions in order to act boldly and empower both humans and agents to thrive together.

Don’t Journey Alone

So, what are your calls to action to fast-track your way to becoming a Frontier Firm?

1. Tap into DWG’s expertise:

If you’d like help with setting up a workshop to enable you and your stakeholders (or team) to make sense of this report’s ground-breaking findings so you can factor it into your future of work strategy: contact us.

2. Plug into DWG’s topical research:

DWG can also help you understand the full range of questions needed to build your workforce readiness strategy based on the timely release of our latest DWG research entitled ‘Empowering employees for the AI era: A guide to AI upskilling’.

Read the AI Literacy blog post here

DWG members can access the full report here

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Categorised in:   → Diary of a She-E-O, Future of work