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Businesses report rising revenue loss from inefficient tech as AI adoption grows

New research shows two in five global businesses face revenue loss due to tech inefficiencies, with many turning to AI to improve productivity.

New research from TeamViewer has highlighted growing concern about the impact of dysfunctional technology on business performance, with two in five global companies reporting that inefficient IT systems have already cost them revenue. The study shows that digital friction, described as everyday technology breakdowns that slow or block work processes, continues to undermine productivity in organisations of all sizes.

The findings reflect a challenging economic backdrop where companies are under pressure to improve efficiency. Employees surveyed say they lose an average of 1.3 days of productive time each month because of persistent technology issues. TeamViewer’s research indicates that 80 per cent of employees experience lost work time every month due to digital friction, pointing to a widespread operational strain that extends far beyond occasional inconvenience.

The consequences are financial and human. Across all markets, 42 per cent of respondents say their organisation has suffered revenue loss linked to IT inefficiencies. Nearly seven in ten believe these issues have contributed to employee turnover. Job satisfaction is also affected, with 47 per cent saying technology frustrations lower morale, and 28 per cent admitting they have considered resigning because of ongoing digital challenges.

The report, titled The Impact of Digital Friction: Understanding How Dysfunctional Technology Drains Productivity, Performance & People, is based on insights from 4,200 employees and managers across nine countries and a wide mix of industries.

Oliver Steil, CEO of TeamViewer, said the findings underline the scale of the issue. “Given the number of challenges business leaders are navigating today, it’s understandable that IT issues can go unnoticed – but when they do, the financial impact is significant. Technology sits at the core of every modern organisation. When it underperforms, the cost is immediate, in efficiency, customer satisfaction, and ultimately in competitiveness.”

APAC’s position in the global landscape

The research shows that Asia Pacific sits close to the global average for digital friction but still trails markets such as the US and India. While 42 per cent of APAC organisations report revenue loss due to technology inefficiencies, the figure climbs to 47 per cent in North America and drops to 37 per cent in EMEA. The region mirrors the overall global average of 42 per cent, pointing to a consistent challenge across multiple markets.

In APAC, only 14 per cent of employees say they have not lost work time due to digital friction. Respondents report losing an average of 1.33 working days each month to technology-related disruption. Half of the region’s respondents say digital friction has delayed critical operations or projects. Meanwhile, 42 per cent believe persistent IT issues contribute to burnout, and 30 per cent have considered leaving their jobs because of these challenges.

Industries such as manufacturing, logistics and finance are particularly affected, where even brief system downtime can disrupt operations and reduce profitability. The region’s blend of digitally advanced economies, including Singapore and Japan, alongside developing markets introduces additional complexity. Strengthening digital infrastructure across APAC will be key to maintaining competitiveness in a rapidly evolving global market.

AI offers a path to recovery

Despite growing concerns about digital friction, the research points to cautious optimism. Nearly half of all respondents (48 per cent) believe AI can help reduce daily technology barriers within their organisation. Confidence in AI is slightly higher in APAC and North America, where 50 per cent of respondents say they see value in using AI-driven tools to streamline IT workflows. In Europe, the figure stands at 41 per cent.

Half of global respondents, and 52 per cent of those in APAC, say they are open to using AI to automate routine IT tasks such as troubleshooting and password resets. This signals a shift toward greater acceptance of AI as a practical solution rather than an emerging technology.

Andrew Hewitt, VP of Strategic Technology at TeamViewer, said AI holds strong potential to improve the workplace experience. “Technology should empower people, not hold them back. With productivity such a huge focus for businesses right now, there’s a real opportunity to turn everyday tech frustrations into progress. Our findings show that reducing digital friction can have an enormous impact on both performance and morale. When organisations embrace AI-powered workplace solutions, they can remove barriers, give people back valuable time, and create a smoother, more rewarding work experience.”

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