FM’s Technology (Re)Evolution
How AI is reshaping the modern office
BY CAITLIN KAMM
Editor’s note: This article is the first part of a three-part series spotlighting workplace technology.
The workplace is evolving as artificial intelligence (AI) reshapes operations and reimagines possibilities. From AI-powered automation to biometric security and collaboration tools, technology is transforming how the office functions and how employees experience it. AI and automation have transcended traditional boundaries to become integral parts of everyday office environments.
Recent Envoy and Hanover research asked 495 workplace professionals what they thought, and an overwhelming 76 percent believe that AI and automation will have the most significant impact on their work environment. Companies are realizing they need to jump on board with these game-changing technologies. This is not just a small update – it is a complete reimagining of how work gets done, how organizations use office space and how people interact with technology. Today's employees expect workplaces equipped with smart, intuitive systems that boost efficiency, security and teamwork.
AI is breaking out of IT departments
The bottom line is that AI is not just for technical folks anymore. It has expanded across all aspects of workplace functionality. From making administrative tasks easier to optimizing how organizations use office space, AI is fundamentally changing how everyone interacts with both digital and physical workspaces.
Which technologies does your organization plan to invest in over the next 12 months to enhance your workplace?
Workplace security technologies
Automation tools
Collaboration platforms
Smart office solutions
No plans to invest
Compared to 2024, how has your company's workplace budget changed for 2025?
Increased between 1 to 10%
Remained the same
Increased by more than 10%
Decreased between 1 to 10%
Decreased more than 10%
Figure 1: AI is no longer a nice-to-have, but a necessity. Sixty-nine percent of organizations plan to invest in automation tools this year, and 65 percent have larger year-over-year budgets to spend on real estate, workplace design, workplace technology and staffing.
Companies are going all-in on workplace tech
Organizations are backing up their commitment to technology with serious money, as Figure 1 shows. This investment trend suggests industries are riding what many call a "big wave" of AI-powered tool adoption in 2025. Companies that miss this wave risk falling behind in both efficiency and their ability to attract and keep talent.
The allocation of these increased budgets reveals shifting priorities in digital transformation efforts within workplaces. While traditional IT infrastructure still commands a significant portion of technology spending, there is a notable increase in investments focused on employee experience technologies, including collaboration tools, workflow automation platforms and AI-powered productivity assistants. These investments show the increasing demand for sustainable growth, replacing the mantra in the days of yore to grow-at-all-costs. Now, businesses are looking to leverage both human and digital resources to create a mutually symbiotic/beneficial relationship, maximizing the lifetime value of both human and digital assets, as well as the overall organizational ecosystem. This reflects a growing recognition that technology investments should enhance human capabilities rather than simply replace them.
Investment in workplace AI and defining the organization’s AI strategy is a business imperative. Industry sectors vary in their investment approaches, with financial services, health care and professional services leading in adoption rates for advanced AI tools — a promising trend for innovation, given these industries are more strictly regulated. Manufacturing and logistics organizations are increasingly investing in physical automation combined with AI-driven predictive maintenance and supply chain optimization. Retail and hospitality sectors are focusing on customer-facing AI applications that seamlessly connect with back-office operations.
Companies are measuring the return on these investments not just in cost savings but also in terms of opportunity costs for not investing in AI when this technology improves innovation, work quality and productivity, as well as employee experience and engagement. The headcount at an organization may remain the same, but regardless of role, those who refuse to learn and leverage AI in this new world of work will exit stage left as human capabilities coevolve and advance with the increasing adoption of AI. Organizations taking this holistic view, coupled with an understanding of the competitive landscape, are finding stronger reasons to keep investing in advanced workplace tech.
Workplace security gets a major upgrade
When it comes to workplace security, badges and keycards are not enough anymore. Companies are turning to biometric authentication and AI-powered security to keep workplaces safe, with 78 percent planning to invest in advanced workplace security tech in 2025 (See Figure 1). These systems not only enhance security but also improve the user experience by eliminating the inconvenience of forgotten or lost credentials.
The trick is finding the sweet spot between strong security and a seamless user experience. The best biometric authentication systems are the ones users barely notice. Facial recognition, fingerprint scanning and even analyzing how people walk are becoming normal in advanced workplaces. These technologies work together with behavioral analytics that continuously verify identity based on typing patterns, navigation habits and other unique ways individuals interact with digital systems. Multifactor authentication is increasingly happening in the background without anyone having to do anything.
Beyond physical access, data security is evolving through AI-powered threat detection systems that identify anomalous behavior patterns indicative of potential security breaches. These systems analyze vast quantities of network traffic data, identifying potential vulnerabilities and attacks far faster than human security teams could manage alone. When potential threats are detected, AI systems can automatically implement defensive measures while alerting security personnel with contextual information that speeds investigation and remediation.
Privacy considerations remain paramount in these advanced security implementations. Organizations are adopting zero-knowledge proof systems that verify identity without storing biometric data. Differential privacy techniques allow for security monitoring without compromising individual privacy, creating a more acceptable balance between security requirements and personal boundaries.
The rules and regulations around these advanced security technologies are also evolving, with new frameworks emerging to govern appropriate use cases, data storage limitations and consent requirements. Forward-thinking organizations are actively participating in developing these frameworks, recognizing that ethical implementation is essential for long-term acceptance.
Practical applications, tangible improvements
Perhaps the most encouraging aspect of workplace technology in 2025 is the growing recognition that AI and automation are enhancing human capabilities rather than replacing them. Contrary to earlier fears of widespread job displacement, these technologies are primarily eliminating repetitive manual tasks, allowing employees to focus on creative thinking, strategy development and innovation. The most successful organizations will be those that implement technology to improve employee experience while maintaining the human element that drives innovation. The democratization of AI across all business functions represents one of the most significant shifts in workplace dynamics in decades. What was once the domain of specialized teams is now empowering employees across departments.
This expansion is particularly evident in three key areas:
1. ADMINISTRATIVE TASK AUTOMATION:
AI-powered systems are handling everything from scheduling and email management to document processing and data entry, freeing up valuable human time. Advanced natural language processing algorithms now draft correspondence, summarize meetings and prioritize communications based on content analysis and historical patterns. These systems learn from user behavior, becoming increasingly accurate and personalized over time, effectively serving as digital assistants that anticipate needs before they are expressed.
2. WORKSPACE OPTIMIZATION:
Smart systems are analyzing utilization patterns to create more efficient office layouts, manage meeting room availability and optimize environmental controls. Sensors embedded throughout office environments collect data on movement patterns, space usage, temperature preferences and lighting conditions. AI algorithms then process this information to make real-time adjustments that enhance comfort while reducing energy consumption. Some advanced systems even predict space needs based on scheduled meetings, project deadlines and historical usage patterns, automatically reconfiguring flexible spaces to accommodate changing requirements.
3. EMPLOYEE PRODUCTIVITY ENHANCEMENT:
AI-powered systems are handling everything from scheduling and email management to document processing and data entry, freeing up valuable human time. Advanced natural language processing algorithms now draft correspondence, summarize meetings and prioritize communications based on content analysis and historical patterns. These systems learn from user behavior, becoming increasingly accurate and personalized over time, effectively serving as digital assistants that anticipate needs before they are expressed.
AI is transforming knowledge management within organizations integrating the analysis of both real and synthetic data, ensuring that valuable information is not lost when someone leaves the company or a service, product line or system is no longer available (be it a temporary disruption or permanent shut down). Advanced systems now capture, categorize and make accessible the collective intelligence of the organization, pulling together data from disparate systems, sources and modalities into a centralized treasure trove (i.e., large language models) of insights. These knowledge repositories use sophisticated algorithms to connect related information across departments, surfacing relevant content precisely when needed without requiring explicit searches. Leveraging AI in these ways can quickly become a force multiplier of competitive advantage and overall success.
Job roles are changing, not disappearing
Rather than eliminating positions, there is a transformation of responsibilities. Bank tellers become financial advisors when transaction processing is automated. Factory workers become technical specialists when robots handle assembly. Customer service representatives become relationship managers when chatbots handle routine inquiries.
This transformation requires thoughtful change management and skill development. Forward-thinking organizations are investing heavily in reskilling programs that help employees transition into more sophisticated roles. These programs often combine formal training with on-the-job learning experiences, creating gradual transitions that build confidence while maintaining operational continuity.
The psychological impact of this transformation deserves careful attention. Employees who previously defined their value through task completion must adapt to new performance metrics based on judgment, creativity and relationship management. Organizational cultures are evolving to celebrate these distinctly human contributions, creating new recognition systems that reinforce the value of qualities that machines cannot replicate.
The physical workplace gets a makeover
The integration of advanced technology is completely reshaping physical workplace environments. The traditional office designed around individual workstations is giving way to more fluid spaces that support different modes of work throughout the day. These spaces leverage technology to enhance their functionality without becoming coldly institutional.
Ambient AI — technology that fades into the background until needed — is becoming the norm in leading workplace environments. Room systems automatically adjust lighting, temperature and acoustics based on occupancy and scheduled activities. Collaboration spaces recognize participants and automatically retrieve relevant documents and context information. Navigation systems guide visitors and employees through complex buildings with personalized directions delivered through subtle ambient cues rather than intrusive notifications.
Sustainability goals are increasingly achieved through intelligent building management systems. AI-driven climate control optimizes energy usage based on occupancy patterns and weather predictions. Smart lighting adjusts not just for energy efficiency but also to support human circadian rhythms, enhancing alertness during working hours and supporting general well-being. Water management systems detect leaks instantly and regulate usage based on real-time needs rather than preset schedules.
The concept of workplace neighborhoods is gaining traction, with physical spaces designed to support specific work modalities rather than departmental boundaries. Focus neighborhoods provide acoustic isolation and minimal distraction for deep work. Collaboration neighborhoods offer flexible furniture and interactive display technologies that support both planned and spontaneous teamwork. Social neighborhoods facilitate the informal interactions that build organizational culture and spark innovation.
Remote work technologies continue to evolve, creating more seamless connections between physical and virtual workplace experiences. Advanced telepresence systems create more natural interactions between on-site and remote participants through spatial audio, life-sized video and shared digital canvases. The boundary between in-office and remote is vanishing as cutting-edge technology forges seamless, equivalent experiences that render physical location increasingly irrelevant.
Beyond 2025
The integration of advanced technology is completely reshaping physical workplace environments. The traditional office designed around individual workstations is giving way to more fluid spaces that support different modes of work throughout the day. These spaces leverage technology to enhance their functionality without becoming coldly institutional.
The workplace of 2025 is not about choosing between technology and human capability. It is about harnessing the power of both to create something greater than the sum of its parts. Organizations that understand this fundamental truth are positioning themselves for immediate operational benefits and sustainable success in an increasingly digital future.
As workplace technology continues to evolve at lightning speed, the fundamental questions remain remarkably consistent: How can organizations use these tools to enhance human capability? How do they ensure that technology serves human needs rather than the reverse? How do they create workplaces that leverage technological advancement to create more meaningful, productive and fulfilling work experiences? The organizations that answer these questions most effectively will define the future of work for generations to come.
Part 3:
The magnetism of the modern office
Envoy’s Report — The State of Work in 2025