Kyndryl: 71% of Workforces Unprepared for AI Deployment

A study by Kyndryl has found that whilst 95% of businesses have invested in AI technology, 71% of leaders acknowledge their workforces remain unprepared to leverage these systems effectively.

The enterprise technology services provider’s first People Readiness Report shows that 51% of organisations believe they lack the skilled talent required to manage AI systems, whilst 45% of chief executives report employee resistance or hostility towards AI implementation. The findings suggest that technical infrastructure alone cannot deliver the commercial benefits organisations expect from their AI investments.

“Only a small group of businesses have been able to harness AI successfully for business growth,” comments Michael Bradshaw, Global Practice Leader for Applications, Data and AI at Kyndryl. “This report shows that while data architecture and technology infrastructure are key pieces of the puzzle, organisations that do not prioritise their workforces and organisations will miss out.”

Banking and financial services lead AI workforce preparation

The research reveals sector-specific variations in workforce readiness levels. Banking, financial services and insurance companies report the highest levels of preparation for AI deployment, whilst healthcare organisations trail behind other industries in workforce development initiatives.

Despite widespread implementation attempts, most organisations have not achieved transformative use cases that generate new products and services for customers. The report finds that generative AI (Gen AI) tools represent the most common deployment, yet only 40% of leaders report using AI-powered insights to enhance decision-making or drive business growth. Just 20% of respondents identify new product and service development as their primary AI use case.

The study identifies a subset of organisations, termed AI Pacesetters, representing 14% of companies surveyed. These organisations have successfully deployed AI for commercial purposes whilst addressing workforce readiness challenges. Pacesetters demonstrate three times higher likelihood of implementing comprehensive change management strategies for workplace AI adoption compared to other companies.

Kyndryl identifies three barriers to AI workforce integration

The research highlights three key obstacles preventing effective AI adoption across organisations. AI Pacesetters show 29% lower likelihood of citing employee engagement concerns related to AI implementation. These organisations also demonstrate 67% higher probability of agreeing their company possesses adequate tools and processes for skills inventory management, with 40% reporting no skills challenges.

“Preparing your workforce for the era of AI is easy to say, hard to do and an urgent imperative for business leaders,” says Maryjo Charbonnier, Chief Human Resources Officer at Kyndryl. “At Kyndryl, we run an entire ecosystem of systems and culture that readies our people and our business for continuous change. It’s about anticipating the business impacts of AI, understanding and integrating your skill data with your customer demand and having a multi-pronged approach for equipping employees to build the skills they need and learn to effectively use generative AI tools in their work.”

The study reveals significant differences in perspective between chief executives and technology leaders regarding AI implementation. CEOs demonstrate higher likelihood of describing their organisations as being in early AI stages and show 2.5 times greater probability of citing inadequate infrastructure support. This divergence extends to approaches for addressing workforce challenges, with CEOs showing preference for external talent acquisition over internal employee upskilling programmes.

Technology leaders favour internal skills development over external hiring

The gap between executive perspectives affects strategic decision-making around AI workforce development. Technology leaders typically advocate for upskilling existing employees, whilst CEOs lean towards recruiting external talent to fill AI-related roles. This difference in approach can impact the speed and effectiveness of AI implementation programmes.

The research indicates that organisations achieving alignment between senior leadership teams demonstrate better AI adoption outcomes. These companies show coordinated movement towards common objectives and report measurable benefits from their unified approach to AI workforce development.

“The encouraging news is that organisations who can get alignment at the top are not only marching in the same direction, but are seeing the benefits of that alignment,” says Kim Basile, Chief Information Officer at Kyndryl. “This work isn’t easy, but aligning technology strategies with broader business goals is the top action leaders need to take to fully benefit from AI.”

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