Kyndryl Report: Why Most Businesses Are Not Yet Winning With AI

A new global study released today by Kyndryl found that only a small number of organizations have taken steps to align their workforce strategies with the growth of AI technology. Those that have done so have positioned themselves ahead in the race to deliver positive return on investments in the technology.

Based on a survey of more than 1,000 senior business and technology executives across 25 industries and eight geographies, Kyndryl’s first People Readiness Report reveals a striking gap between AI investment and workforce preparedness:

  • 95% of businesses have invested in AI
  • 71% of leaders say their workforces are not yet ready to successfully leverage the technology
  • 51% believe their organizations lack the skilled talent needed to manage AI
  • 45% of CEOs think most employees are resistant or even openly hostile to AI

Workforce readiness varies by industry. Businesses in Banking, Financial Services and Insurance report the highest levels of preparedness, while those in Healthcare report trailing behind.

Despite widespread attempts at implementation, most organizations are not currently benefiting from game-changing use cases that will drive new products and services for their customers. Generative AI tools are the most popular use case reported by those surveyed, yet only 4 in 10 leaders report using AI-powered insights to enhance decision-making or unlock growth for their business. Just one-fifth of leaders say the primary use case of AI at their organization is to develop new products and services for customers.

Yet this research also reveals that a small subset of AI Pacesetters has leveraged AI for business growth while addressing workforce readiness. They are making strategic workforce decisions and seeing benefits across their employee population. Pacesetters are uniquely addressing 3 key barriers that are inhibiting AI adoption, and they are seeing benefits from their actions across:

  1. Organizational change management: AI Pacesetters are three times more likely than others to report a fully implemented change management strategy for AI in the workplace.
  2. Lack of employee trust in AI: AI Pacesetters are 29% less likely to cite fears around AI affecting employee engagement.
  3. Skill gaps: AI Pacesetters are 67% more likely to agree that their organization has the tools and processes to accurately inventory the skills employees currently have. Four in 10 report no skills challenges at all.

Compared to CIOs and CTOs, CEOs are far more likely to say their organization is still in its early stages of AI, and two and a half times more likely to say their infrastructure is inadequate to support it. This difference also extends to how they choose to solve AI-related workforce challenges and the individual skills they believe their organization needs to be successful. CEOs are far more likely to turn to outside talent rather than upskilling their own employees.


To read the full report, visit Kyndryl’s People Readiness Report.

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