This report by Microsoft analyses data from 31,000 workers across 31 countries, LinkedIn market trends and trillions of Microsoft 365 productivity signals, revealing the emergence of an entirely new organisation: a Frontier Firm that looks markedly different from those we know today. These companies are structured around on-demand intelligence and powered by "hybrid" teams of humans and agents. They scale rapidly, operate with agility and generate value faster. The report predicts that within the next 2-5 years, every organisation will be on their journey to becoming a Frontier Firm. 82% of leaders say this is a pivotal year to rethink key aspects of strategy and operations, and 81% say they expect agents to be moderately or extensively integrated into their company's AI strategy in the next 12-18 months.