AI is accelerating business pace and forcing companies to rethink office space needs, pushing leaders toward flexible, decentralized workspace models, according to new research from International Workplace Group (IWG).
The IWG study found 60% of CEOs and CFOs believe AI has made it harder to predict office space requirements two years out, driving a shift toward capital-light strategies.
Notably, 73% say technological change has made their organization less willing to commit to long-term office leases or traditional real estate.
Yet flexibility doesn't mean retreat: 76% of CEOs say the office's role will actually grow in importance over the next two years.
Nearly all respondents (99.8%) report actively shifting real estate costs from fixed to variable spend, reflecting this new flexibility-first mindset.
India exemplifies this shift, boasting the world's highest workplace AI adoption at 73% of professionals using AI tools regularly.
Global Capability Centres already drive 45.5% of India's office leasing, while flexible workspace penetration has surged from 5% to 21% since 2017.
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