Artificial intelligence is accelerating the pace of business and forcing companies to rethink both the amount and type of office space they need. In this context, organizations are increasingly betting on flexible and decentralized work models, according to a new study by International Workplace Group (IWG), the largest global workspace platform and owner of brands such as Regus and Spaces.
The study, carried out among chief executive officers (CEO) and financial directors (CFO), reveals that 60% consider that the rise of AI has made it difficult to forecast their organization’s workspace and office needs for the next two years. As technological advances transform productivity, workforce planning and the way of working, managers are moving away from fixed, long-term real estate commitments to more flexible and less capital-intensive strategies, capable of adapting to the changing needs of companies.
AI redefines where you work
88% of CEOs say that the expansion of AI makes it essential to have flexibility in workspace or real estate solutions, since the speed with which technology evolves makes it difficult to anticipate future space needs.
When asked how technology, including AI, is influencing office location decisions, 42% say it facilitates remote work and reduces the need for a headquarters; 39% consider that it promotes flexible or decentralized work models and offices; and 37% highlight that it expands access to global and distributed talent, favoring new ways of working.
From fixed costs to variable costs
This change is already underway. 99.8% of CEOs and CFOs assure that their organization is transforming its real estate costs to move from a model based on fixed costs to a more flexible one, with less capital investment. This strategy frees up resources to drive growth and respond with greater agility to future business and work needs.
Aware of the advantages offered by adapting office space to the evolution of activity, instead of being tied to long and expensive contracts, 57% are actively investing in hybrid work models. In addition, 55% are studying creating a network of work spaces closer to their employees’ place of residence and 52% are considering implementing decentralized office models that improve the work experience.
Cost has also become a virtually universal factor in senior management real estate strategy. 99% say that cost reduction influences office location decisions and more than a quarter (27%) consider it the main criterion.
A more productive and efficient work model
Instead of relying on a single corporate headquarters located in the center of large cities, more companies are creating networks of professional workspaces that facilitate hybrid working, improve organizational agility and bring high-quality offices closer to where their employees live.
In addition to financial savings, offering access to flexible workspaces also has a positive impact on productivity. According to the study, hybrid work models, especially those that allow work to be carried out from flexible spaces close to home, can increase productivity by up to 11% over the next five years. This is a particularly relevant factor for companies seeking to attract and retain talent, while optimizing their costs in the long term.
The office maintains its relevant role
More than three in four CEOs (76%) believe that the role of the office will be even more important to their organization over the next two years, compared to just 0.8% who believe it will lose relevance.
These data reflect a growing consensus: companies continue to need professional spaces that promote collaboration, innovation, corporate culture and a more efficient work environment, although they no longer consider it necessary to commit for years to a single fixed location.
Christian Schmitz, CEO of IWG, said: “AI is accelerating the pace of transformation for all businesses, and organizations that want to stay competitive need workspace strategies that allow them to scale up or down quickly, reduce unnecessary overhead costs, and give their teams access to high-quality workspaces wherever they need them.
Offering access to flexible workspaces also has a positive impact on productivity
»It is about providing companies with the necessary flexibility to adapt as technology evolves. No one knows for sure what their organization will look like in two years, but they do know that it will need enough agility to respond to changes. “That is precisely what the IWG platform offers.”
For his part, Mark Dixon, founder and CEO of IWG, points out: “AI is not simply a new wave of innovation. It is accelerating the pace of business at a speed few could imagine, making it much more difficult for companies to predict what they will need even two years from now. In this context, assuming long-term real estate commitments makes less and less sense.
«The future belongs to companies capable of adapting quickly, accessing talent wherever it is and offering their professionals quality workspaces wherever they need them. “AI will make creativity, judgment and adaptability even more valuable, and flexible workspaces provide precisely the agility needed to respond to that scenario.”
