AI is paving the way for a new type of organization - a Frontier Firm

As artificial intelligence (AI) evolves from a tool to a true assistant, its role in the workplace expands, fundamentally transforming how enterprises operate. Microsoft's latest research identifies a new type of organization known as the Frontier Firm, where on-demand intelligence requirements are managed by hybrid teams of AI agents and humans. Also: Will AI replace software engineers? On Wednesday, Microsoft published its 2025 Work Trend Index Annual Report, which combines survey data from 31,000 workers across 31 countries, Microsoft 365 productivity signals, LinkedIn hiring and labor trends, and expert insights to give employees and business leaders a comprehensive view of the work landscape. The focus of this year's report is the concept of a Frontier Firm, which helps researchers explore what work structure will be like in the AI era.