From C-suite disconnects to lack of trust, Kyndryl’s People Readiness Report highlights where organisations are falling short of successful AI adoption.
Last month, tech services provider Kyndryl released a global study that indicated a significant gap between AI investment and workforce preparedness in enterprise.
The People Readiness Report revealed that while 95pc of businesses have adopted AI in their operations, 71pc of business leaders believe their workforces are not ready to use the technology to its full potential.
The report, which surveyed more than 1,000 senior business and technology executives across 25 industries and eight geographies, found that only a small group of businesses – dubbed ‘AI Pacesetters’ – have aligned their workforce, technology and growth goals to benefit from AI adoption.
“The rest are often treating AI as a technical implementation rather than a transformation that demands cultural and operational change,” Nick Drouet, CTO of Kyndryl UK and Ireland explains to SiliconRepublic.com.
Drouet further explains that of the businesses leveraging AI, 66pc of them focus heavily on internal process optimisation while neglecting the ways in which AI can influence growth opportunities or workforce roles.
“Pacesetters, by contrast, embed AI into their enterprise and culture, and they empower their people through trust-building, change management and proactive upskilling. Not focusing on this holistic integration is where most businesses fall short.”
Skills and trust
According to the report, there are three critical barriers that are inhibiting AI adoption: organisational change management, lack of employee trust in AI and skills gaps.
“Many organisations underestimate the level of organisational change required,” says Drouet. “They also struggle to build trust in AI among employees – especially when fears of job displacement go unaddressed.”
Only four in 10 leaders surveyed say their organisation has fully implemented an overall AI adoption strategy to take them from their current state to a future state, while even fewer have implemented foundational strategies such as an AI governance framework or a change management strategy.
In fact, 53pc of responding leaders believe their workforce is ready to navigate changes related to AI over the next five years.
In terms of trust, half of leaders say there is a widespread fear of job displacement among their workforces, which is affecting employee engagement with AI. 45pc of CEOs state that their employees actively resist the tech.
While, 51pc of leaders say there is a lack of skilled talent to manage AI tech in their business.
“Solving the skills gap requires investment and intention,” says Drouet. “Businesses must understand not only what skills are missing but where demand is heading.”
C-suite contrasts
Interestingly, the report suggests that a disconnect exists between CEOs and CIOs/CTOs regarding how they view workplace readiness and how they can improve readiness.
According to the report, CEOs are more likely to report that their organisation is not currently using AI or is still in the early stages of implementation.
“CEOs tend to perceive more employee resistance to AI – 45pc say their teams are hostile or resistant – while 73pc of CTOs and CIOs say the opposite,” says Drouet. “This disconnect can result in misaligned strategies and missed opportunities.”
The disconnect is further present in regard to strategies for solving the skills gap.
80pc of CIOs and CTOs are focused on upskilling existing employees in AI, while 43pc of CEOs are prioritising hiring new employees to get those skills.
What can be done?
With the critical barriers to AI adoption identified, we asked Drouet how organisation can combat these challenges.
When it comes to trust, Drouet says transparency is key.
“Trust is foundational. People need to feel that AI is there to enhance, not replace, their work,” he says. “Organisations must be transparent about how AI will be used, explain its benefits and actively involve employees in its deployment.”
Drouet says that where most leaders fall in terms of AI adoption is underestimating the need for a full organisation transformation.
“Technology adoption is the easy part – it’s the cultural, governance and workforce alignment that make or break AI strategies,” he says.
“Kyndryl’s research shows Pacesetters are nearly three times more likely to have implemented a change management strategy and two times more likely to say their workforce is ready to navigate change. Too many organisations skip these foundational steps and focus only on AI tools.
“But tools don’t create value; people using them effectively do.”
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