Kyndryl, a global leader in enterprise technology services, has released its first People Readiness Report, highlighting a major disconnect between AI investments and workforce readiness. Despite a widespread push toward AI implementation, few organizations have taken proactive steps to align their workforce strategies with these technological advancements.

The report, based on insights from over 1,000 senior executives across 25 industries and 8 geographies, paints a sobering picture: while businesses are eager to embrace AI, most are ill-equipped to integrate it meaningfully across their teams.

Findings from the Kyndryl People Readiness Report

1. AI Investments Are High, But Workforce Readiness Is Low

• 95% of businesses have already invested in AI.

• 71% of leaders report their workforces are unprepared to leverage AI effectively.

• 51% say their organizations lack the necessary skilled talent for AI operations.

• 45% of CEOs believe that employees are resistant or even hostile toward AI adoption.

2. Industry-Wise Disparities in Readiness

• Banking, Financial Services, and Insurance show higher levels of workforce readiness.

• Healthcare lags behind, reporting some of the weakest readiness levels for AI integration.

3. The Disconnect Between AI Implementation and Business Value

• Most companies have yet to unlock high-value AI use cases like product innovation or advanced decision-making.

• Generative AI is widely used, but only 4 in 10 leaders report using AI to derive strategic insights.

• Just 20% use AI primarily for developing new customer-facing products or services.

Who’s Getting It Right? The AI Pacesetters

A small subset of organizations—referred to as AI Pacesetters—stand out for aligning workforce strategies with AI goals. These companies are seeing meaningful ROI and employee adoption benefits.

AI Pacesetters Address 3 Major Challenges:

• Organizational Change Management:
  Pacesetters are 3x more likely to have fully implemented change management strategies for AI integration.

• Lack of Employee Trust:
  They are 29% less likely to face employee disengagement due to AI concerns.

• Skill Gaps:
  Pacesetters are 67% more likely to have accurate skill inventories and 4 in 10 report no skills gap issues.

Leadership Perspectives: Misalignment and Missed Opportunities

1. C-Suite Disconnect

• CEOs are more likely than CIOs/CTOs to say their organizations are in early AI adoption stages.

• CEOs are also 2.5x more likely to cite infrastructure inadequacies as a barrier to AI.

2. Talent Strategy Divide

• CEOs prefer hiring new talent to address AI gaps, while CIOs and CTOs lean toward upskilling current teams.

3. Alignment Yields Results

• Organizations with aligned leadership on AI strategy are progressing faster and achieving stronger outcomes.

The Kyndryl People Readiness Report underscores that AI investment alone is not enough—success hinges on preparing the people who will interact with the technology. Companies must go beyond technical infrastructure and invest in organizational change, employee trust, and reskilling programs.

Organizations that align workforce strategy with AI goals are not only seeing stronger adoption but also driving business innovation and growth. The path to AI maturity is complex, but companies that prioritize people alongside technology are emerging as industry leaders.

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