AI could reduce demand for office space

A new report from workplace consultancy AWA suggests that artificial intelligence could cause a 54 million square foot reduction in UK office demand over the next five years.

The AWA’s AI Impact Report 2026 claims that AI systems could free up an average of 11 hours per employee each week by decreasing routine work across roles with a higher focus on knowledge work. This could lead to productivity gains equivalent to 15.8 million full-time roles in additional capacity across the UK’s economy.

Furthermore, the report notes that the productivity gains of AI might not need to be seen as a loss in workers. While some jobs have the capacity to be replaced by AI, more roles can be reinvested in high value work.

There could be a significant impact on facilities, however, as organisations react to the changing nature of AI. As companies rethink roles and capacity, their space requirements could alter drastically, with office space demands changing sooner than many expect. Because of the shift in roles, a current headcount might not provide a fully accurate picture of space requirements.

The founder of AWA, Andrew Mawson, said: “Most organisations are still viewing AI as a productivity tool. The bigger question is what happens to workplace demand when millions of hours are returned to employees every week.”

He went on to say that “it is important to note that a 54 million sq ft reduction in office demand doesn’t necessarily mean 54 million sq ft disappears. For many organisations, the bigger opportunity will be to reconfigure space around the activities that create the most value. As AI takes care of more administrative tasks, offices can become less focused on individual desk work and more focused on collaboration, innovation, learning, culture and belonging.”