May 17, (THEWILL) – As organisations brace for the next phase of workplace transformation, Microsoft’s fifth annual Work Trend Index (WTI) report has spotlighted the emergence of a new business archetype—the Frontier Firm.
Titled “2025: The Year the Frontier Firm Is Born,” the report, developed in partnership with LinkedIn, reveals how businesses are rapidly evolving by leveraging intelligence on demand, AI-powered human-agent teams, and fluid, outcome-driven workplace structures.
The study draws insights from over 31,000 professionals across 31 countries, LinkedIn’s Economic Graph data, and trillions of aggregated signals from Microsoft 365, including emails, meetings, and chats.
Microsoft defines Frontier Firms as organisations using AI not only to enhance efficiency but also to scale innovation. These firms are harnessing hybrid teams—where humans and AI systems collaborate—to address growing business demands amid shrinking capacity.
The report found that 82% of business leaders plan to adopt AI-driven solutions in the next 12 to 18 months, aiming to close the capacity gap caused by limited human resources.
“AI has fundamentally changed the equation. Intelligence is now abundant, affordable, and scalable,” said Ola Williams, Country Manager, Microsoft Nigeria. “Just as the internet era created millions of knowledge jobs, the AI era is already birthing new roles—many of which we haven’t yet imagined.”
According to the 2024 Oxford Insights AI Readiness Index, Nigeria ranks 7th in Africa, with significant adoption of AI in fintech, healthcare, and agriculture. Backed by government policies encouraging innovation, the Lagos AI Institutereported a 43% increase in AI startup investments since early 2023.
The WTI report highlights AI skilling and digital labour as top strategic workforce priorities. Nearly 78% of global leaders are considering hiring for AI-specific roles, a figure that rises to 95% among Frontier Firms. Key roles under consideration include AI trainers, data and security specialists, agent managers, ROI analysts, and strategists in marketing, finance, and customer service.
Additionally, nearly half of business leaders (47%) ranked upskilling their existing workforce as a top priority for the next year.
The report also notes a fundamental shift from traditional hierarchical structures to agile, AI-integrated workflows, where human-agent teams operate fluidly to deliver results. Employees in Frontier Firms are more likely to use AI in marketing, internal communications, customer support, and data science compared to their counterparts in conventional firms.
This year’s report also introduces the concept of the “agent boss”—professionals who build, delegate to, and manage AI tools as part of their core responsibilities. Leaders predict that within five years, managing AI agents will become a standard part of team operations.
Despite the optimism, a notable gap remains in AI adoption. While 67% of leaders claim familiarity with AI agents, only 40% of employees report the same. Moreover, while 79% of leaders believe AI will accelerate their careers, only 67% of employees share that view, revealing an urgent need for AI literacy and skills development.
Williams added, “The findings of this year’s Work Trend Index make it clear that businesses must rethink how they harness AI.
“Frontier Firms are proving that those who strategically integrate AI and empower hybrid human-agent teams will thrive in today’s fast-changing landscape.”
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
