As organizations rethink talent strategies in the age of AI, a new KPMG U.S. report suggests that one of the strongest drivers of employee engagement may be surprisingly simple: meaningful friendships at work.

According to the 2025 Friends at Work Report, most professionals would be willing to give up 20% of their salary if it meant working alongside close friends. The finding highlights the growing importance of human connection at a time when organizations are navigating economic uncertainty, hybrid work and rapid technological change.

The research also reveals a striking contradiction. While workplace relationships remain highly valued, 45% of employees say they sometimes feel isolated or lonely at work—almost double the level reported a year earlier. Remote employees report the highest levels of loneliness, followed by professionals in the technology, telecommunications and media sectors.

KPMG’s Vice Chair of Talent and Culture, Sandy Torchia, argues that organizations should pay as much attention to social connection as they do to compensation. As companies redesign work around AI, she says, fostering authentic relationships is becoming a strategic business priority rather than simply an employee wellbeing initiative.

The AI paradox

The report also points to an emerging paradox. While generative AI is reshaping how people collaborate, it appears to be increasing—not reducing—the desire for human interaction.

Among the findings:

• 86% of professionals say generative AI has increased their need for human collaboration.
• 99% would be interested in an AI chatbot that could act as a trusted workplace companion.
• 98% would welcome AI tools that recommend colleagues with shared interests.
• Yet 49% believe technology is replacing meaningful conversations with superficial interactions.

The data suggests that employees see AI less as a replacement for relationships and more as a tool that could help facilitate them—provided it strengthens, rather than substitutes, human connection.

A leadership challenge

For business leaders, the findings reinforce a broader trend emerging across recent workplace research: culture is increasingly becoming a competitive advantage.

As AI automates more routine work, organizations may need to invest just as deliberately in creating environments where people build trust, collaborate effectively and develop genuine relationships. The companies that succeed with AI, the report suggests, may ultimately be those that become more human—not less.

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Source: KPMG Survey | Forbes