Dysfunctional tech is hurting businesses worldwide, with 42% reporting revenue loss—but AI could help turn the tide

GÖPPINGEN, GERMANY, 13 November, 2025 — As organizations strive to boost productivity in a challenging economy, new research from TeamViewer, a global leader in digital workplace solutions, highlights concerns about dysfunctional technology. The study reveals that dysfunctional technology is quietly eroding business performance and limiting productivity gains across industries.

The financial, operational, and human impacts are significant with employees stating they are losing on average 1.3 days per month due to digital friction. According to the research, 80% of employees lose productive time every month due to digital friction — everyday technology breakdowns that prevent people from doing their jobs efficiently.

The impact extends well beyond inconvenience: 42% of respondents say their organization has suffered revenue loss due to digital friction, while 69% believe it has contributed to employee turnover. Further, 47% say technology frustration reduces job satisfaction, and 28% have considered quitting because of it.

The report, “The Impact of Digital Friction: Understanding How Dysfunctional Technology Drains Productivity, Performance & People,” draws on insights from 4,200 employees and managers across nine countries and multiple industries.

“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,” said Oliver Steil, CEO, TeamViewer. “Technology sits at the core of every modern organization. When it underperforms, the cost is immediate – in efficiency, customer satisfaction, and ultimately in competitiveness.”

AI’s role in resolving dysfunction

Encouragingly, the research highlights a clear path forward. Nearly half of respondents (48%) believe AI can help reduce digital friction in their organization. Meanwhile half (50%) are open to AI taking over routine IT tasks such as troubleshooting and password resets.

These insights suggest a growing readiness among businesses to embrace AI as a force multiplier for productivity and efficiency, helping teams work smarter and faster while reducing everyday hurdles.

“Technology should empower people, not hold them back” said Andrew Hewitt, VP of Strategic Technology, TeamViewer. “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 organizations embrace AI-powered workplace solutions, they can remove barriers, give people back valuable time, and create a smoother, more rewarding work experience.”

About the Report: The study was conducted by Sapio Research on behalf of TeamViewer in August–September 2025 across nine markets: the U.S., Canada, U.K., Germany, France, Italy, Japan, India, and Australia. Respondents included an even split of managers and employees across industries and company sizes. The full report is available here: https://www.teamviewer.com/en/resources/reports/impact-of-digital-friction/