The workforce AI gap no one's talking about—but every frontline worker feels
AI is transforming manufacturing, but frontline workers are being left behind. Discover how closing the AI gap can boost retention, productivity, and engagement across the frontline workforce.
By Sheila Stafford for TeamSenseApril 23 2025, Published 6:11 p.m. ET
Artificial Intelligence (AI) is revolutionizing industries at an unprecedented pace, especially in the hard-hit manufacturing space. From supply chain automation to predictive maintenance, manufacturing is experiencing a surge in efficiency-driven innovation.
However, there's a critical area where AI has barely made an impact: the daily work experience of frontline employees, who comprise an estimated 70% of the U.S. workforce.
Despite being the backbone of manufacturing and logistics, frontline workers often remain disconnected from their employers, underserved by technology, and burdened by outdated or poorly designed digital tools. This investment gap represents a significant missed opportunity for enhancing productivity, engagement, and employee retention.
- Low Investment in Frontline AI Training: Only 14% of frontline employees have received training on how AI will change their jobs, despite 86% expressing the need for such training.
- Employee Concerns About AI: Over 40% of workers fear that AI will replace their jobs within the next decade, highlighting significant apprehension about AI's impact on employment.
United Business Mail, America's largest independent provider of Standard Commingle Services, is beginning to do things a little differently.
"If someone makes it through their first seven days, they'll likely be here for life. But making it through those first seven days is a major challenge," says Valentine Chavez‑Gonzalez, United Business Mail's director of human resources. "Using AI during onboarding could help boost that early retention."
When Chavez‑Gonzalez first came to United Business Mail, their attrition rate was 150%. Now, attrition is three times lower, thanks to a lot of hard work and leveraging AI-powered workforce management software.
But United Business Mail's story is one of the exceptions.
The Real Cost of Ignoring Frontline Tech
- Companies invest in machines, not people: While many manufacturers have been quick to embrace AI-powered automation, spending on workforce productivity tools has stagnated. Investment in frontline technology remains significantly lower than enterprise software spending, even though frontline teams constitute the majority of the workforce.
- Disconnected workers are costing you:
- The manufacturing industry has one of the lowest employee engagement rates, with only 34% of employees feeling engaged at work.
- Disengaged employees are 87% more likely to leave their organizations, underscoring the critical link between engagement and retention.
- App-based user interfaces are failing the frontline: Many workforce applications claim to address these issues, but most are designed with desk workers in mind. For frontline teams, they are often:
- Clunky and hard to use: Overly complex logins and nonintuitive navigation hinder usability.
- Not designed for the job: Requiring constant updates, excessive manual entry, or unreliable connectivity.
- Built for management, not workers: Prioritizing reporting features over actual worker usability and efficiency.
- Usability Issues: A study revealed that only 34% of knowledge workers and management reported getting what they wanted from AI agents, suggesting that current AI tools may not be effectively designed for user needs.
- Productivity loss due to poor design: Companies with engaged employees are 21% more profitable and 22% more productive than those with disengaged employees, highlighting the financial impact of effective tool design and employee engagement.
"We sort between 19,000 to 33,000 pieces of mail every minute," notes United Business Mail CEO Bill Boyce. "To keep that pace, everyone has to be on the same page. The company's employee-centric AI helps us be 50% more productive and operate in lockstep. It's our secret ingredient."
It's Time to Rethink Frontline Workforce Tech
The natural next phase of AI adoption in manufacturing is to go beyond automation and empower the people doing the work. It also has to be safe.
"One of the reasons we felt confident using our AI employee assistant is that it uses our own data as the source," Chavez‑Gonzalez says. "That's unique. Most policy assistants pull from generic external sources,"
Companies serious about retention, productivity, and workforce engagement will benefit from prioritizing the employee experience, not just process optimization.
This means investing in:
- AI-powered tools that simplify work, not add complexity.
- Seamless, mobile-first solutions that align with the workflows of frontline teams.
- Effective communication strategies that genuinely connect workers to their employers.
- Enhanced safety and retention. Implementing AI-powered technology led to a 26% reduction in crashes and a 50% decrease in driver turnover for DHL Supply Chain, demonstrating AI's potential to improve safety and employee retention.
AI is ubiquitous—but if manufacturing leaders don't reconsider how they apply it, they risk neglecting their most valuable asset: the workforce that keeps everything running. As Chavez‑Gonzalez aptly puts it, "HR doesn't work 24/7, but our AI does."
