Since the startling capabilities of generative artificial intelligence (GenAI) first shook the world in 2023, more of us are wondering: could the four-day workweek come sooner than we thought, or is that just wishful thinking? Once considered a far-fetched notion, the prospect of a four-day workweek (with no loss in pay) is now being taken seriously by companies around the world. This is largely due to changing attitudes towards work-life balance and surging optimism over AI.
Experiments in progress
It’s easy to imagine how a four-day workweek could improve the quality of life for stressed-out full-time workers. With an extra day off each week, there’s more time for rest, family, exercise, hobbies, or just kicking back and relaxing. This not only enhances the mental and physical well-being of employees but also fosters a more engaged workforce and less turnover.
Experiments conducted in Iceland, New Zealand, Sweden, Japan, the United Kingdom, and even the United States — all countries where companies have tried out a four-day workweek — suggest that employees and employers could see benefits. In a survey of 100 large-company leaders, nearly one-third of U.S. CEOs said they were exploring this idea.1
Moreover, a four-day workweek can help increase productivity. One explanation for this is called Parkinson’s Law, which contends that work will expand to fit the time available for completion. In other words, when time is limited, people tend to focus better and cut out the fluff. In 2019, when Microsoft tested a four-day workweek in Japan, it reportedly resulted in a 40% jump in productivity.2
For the four-day workweek to really take off, there’s still a lot that would need to change, including new laws, the expansion and success of pilot programs, and major adjustments in corporate culture.
Enter the game changer — AI
AI is poised to boost workplace productivity, which could speed up the shift to a four-day workweek. Think about how much time workers spend on repetitive tasks — things that AI could handle in seconds. Tools powered by AI can help manage projects, perform research, produce content, and even take over customer service roles with chatbots. For people using AI tools, this could mean less time stuck in mundane routines and more time for meaningful and creative work — or eventually some extra time off each week.
Of course, a four-day workweek may never work for every industry and all jobs. For some types of roles, squeezing five days of work into four could lead to burnout for employees, especially if employers have unrealistic expectations.
1) Bloomberg Businessweek, June 21, 2024
2) CNBC, November 3, 2019
Copyright 2006-
Broadridge Investor Communication Solutions, Inc. All rights reserved.Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. Coastal Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.
CFS representatives do not provide tax or legal guidance. For such guidance please consult with a qualified professional. Information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy. Past performance does not guarantee future results.
Trust Services are available through MEMBERS Trust Company. CFS* is not affiliated with Members Trust Company.