Why AI Is Powering Agencies, But It’s Missing From the Data

Agencies are adopting AI faster than ever – using it for research, reporting, and client delivery. But according to time tracking data published in 2025 from Hubstaff’s More Profit, Less Burnout: How Smart Agencies Scale report, these productivity wins aren’t showing up where they matter most: in the timesheets.

This reveals a surprising gap in how agencies are tracking the real impact of AI. 

Widespread AI Adoption, Hidden in the Data

Findings show that 65–73% of agency teams already use AI, and 86% report measurable productivity gains.et time tracking data tells a different story – only around 4% of logged hours are categorized as AI-related tasks.

This disconnect suggests that agencies may be undercounting AI’s true contribution to efficiency. When AI speeds up workflows, but those time savings aren’t logged or analyzed, valuable data goes missing.

“Agencies are gaining hours every week with AI, but they’re not tracking those wins,” said Jared Brown, CEO of Hubstaff. “You can’t optimize what you don’t measure.”

The Measurement Gap: Agencies Need Smarter Time Tracking

AI is freeing agency teams from repetitive work, helping 67% move faster and 69% focus better.
But most agencies still rely on traditional time tracking tools that can’t capture AI’s indirect efficiency gains.

That means operations leads and project managers are often planning capacity and profitability without seeing the full picture.

To stay competitive, agencies need more than basic timesheets. They need time tracking software that connects activity data, focus patterns, and app usage – allowing them to measure where AI is truly making an impact.

Why Visibility Matters More Than Ever

In agencies, every billable hour counts. But as AI becomes embedded in daily workflows, leaders must understand how work is getting done — not just how long it takes.

That’s where Hubstaff’s time tracking software with built-in productivity monitoring, workforce analytics, and automated payments comes in.

Hubstaff helps agencies turn invisible efficiency into measurable growth.

By tracking time accurately and surfacing where AI reduces manual effort, agencies can:

• Improve capacity planning
• Identify automation opportunities
• Increase profit margins without burning out their teams

When agencies make time visible and predictable, they can connect AI-driven productivity gains to actual capacity, turning invisible efficiency into measurable, scalable growth.

Get the full report and learn how to get more profit and less team burnout

Hubstaff’s How Smart Agencies Scale report explores how top-performing teams are balancing AI productivity gains, improving resource visibility, and driving profitability in the age of automation.

This research builds on Hubstaff’s earlier findings from The AI Productivity Shift and Workstyle Revolution: Debunking Myths and Unlocking Distributed Team Potential. 

Read the full report to learn how your agency can scale smarter, not just faster.