Companies face financial losses and workflow disruptions as employees over-rely on AI tools

KIRKLAND, Wash., Feb. 6, 2026 /PRNewswire/ — Resume.org, the leading platform for building a resume, has released new findings from a January 2026 survey of 1,146 U.S. managers regarding the impact of artificial intelligence on workplace accuracy. The results reveal a growing “AI slop” crisis, where 70% of managers have observed direct reports making AI-related errors that carry significant business consequences, including financial losses exceeding $50,000.

AI-related mistakes are widespread and impact most organizations. The data reveals that these errors are far from rare, with 70% of managers witnessing at least one AI-related mistake in the past year. Notably, these incidents are often recurring: 12% reported seeing these mistakes many times, and 43% observed them several times, suggesting that “slop,” low-quality or unverified AI output, is becoming a persistent feature in the modern office.

Inaccurate information and missed context are the top drivers of errors. The most frequently reported mistakes involve factual inaccuracies (58%) and the failure to account for critical context or nuance (50%). Other prevalent issues include low-quality content (41%) and poor recommendations (35%), highlighting the gap between AI’s generative speed and its lack of professional discernment.

“Most AI-related mistakes stem from over-trust and under-scrutiny,” says Kara Dennison, Head of Career Advising at Resume.org. “Employees treat AI outputs as finished work rather than as a starting point. AI is reliable when used as an assistant, not a decision-maker. Without human judgment and clear processes, speed becomes a risk, and efficiency gains can turn into costly mistakes.”

AI mistakes disrupt workflows and damage professional relationships. The impact extends across the organization, with 58% of managers reporting they were personally affected by a report’s AI error. The consequences ripple outward, affecting coworkers (44%), clients (40%), and even upper management (24%). These errors trigger a cascade of additional work, with 59% of managers stating they had to invest extra time to correct or redo AI-affected tasks.

Financial losses are tangible. The business cost of these errors is nontrivial. Nearly one in five managers report that AI mistakes have cost their business more than $10,000, with 5% indicating losses exceeding $50,000. Beyond direct costs, companies cite damaged credibility (28%), missed deadlines (25%), and lost opportunities (18%) as primary risks.

Gen Z employees are perceived as more prone to AI-related mistakes. Over one-third of managers (34%) identified Gen Z (ages 18–29) as the most error-prone group, followed by Millennials (26%).

“Younger workers aren’t necessarily more careless, but they’re often using AI more frequently and earlier in their workflows,” explains Dennison. “Organizations often assume younger employees intuitively understand AI, yet provide little guidance on verification or risk. As a result, AI may be treated as an answer engine rather than a support tool.”

To mitigate these risks, Resume.org recommends that companies implement robust AI guidelines and emphasize that AI should be used for drafting and summarizing, while humans remain responsible for validation and final judgment.

The full report can be accessed here: https://www.resume.org/ai-slop-crisis/

Resume.org is a leading career services platform dedicated to helping job seekers navigate the modern hiring landscape. By combining an innovative AI-powered resume builder with expert-led support, Resume.org provides users with professionally designed templates and real-world examples crafted by certified resume writers. Beyond document creation, the platform offers strategic insights from experienced recruiters, ensuring every resume is optimized with essential keywords to pass Applicant Tracking Systems (ATS) and effectively showcase candidate skills.

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SOURCE Resume.org