Workforce unreadiness undermines global AI investments

Despite heavy spending, firms face talent gaps, cultural resistance, and stalled AI adoption.

Despite record investments in artificial intelligence, most organisations remain unprepared to scale its use — a challenge rooted not in technology, but in people. According to Kyndryl’s 2025 AI Readiness Report, 95% of firms have invested in AI, yet 71% say their workforce is not ready to adopt it effectively.

Dr. Vishnu Nanduri, Head of AI and Innovation for ASEAN and Korea at Kyndryl, said the problem lies in a disconnect between investment and implementation. “Only 54% of companies are seeing positive returns, and 62% haven't actually moved past the pilot phase. So what this tells us is that the transformation is stalling, not because the tools don't work, but because people aren't being brought along.”

Nanduri said fear and lack of skills are key factors behind the stall. “Employees worry AI metric plays their jobs,” he said. “Companies need to build a culture of psychological safety, investing in upskilling, and clearly show how AI supports but not threatens their workforce.”

Aaron McEwan, VP, Advisory in the Gartner HR practice, agreed that strategy clarity and adoption planning are often missing. “Many organisations are struggling to drive what we call AI literacy across the enterprise,” he said. “There’s a combination of not being clear in what the organisation's strategy for AI actually is and their intent for using it.”

Talent shortages are compounding the issue. “AI projects don't fail because of technology. They fail because of talent gaps,” Nanduri said. To help bridge this, Kyndryl launched its AI Innovation Lab in Singapore in June 2025. “It’s a regional hub designed to build AI talent and drive innovation across Asia,” he said, adding that the lab works with local partners to develop reusable AI assets and promote responsible adoption.

McEwan emphasised that employees’ fears — from job loss to unethical use — must be addressed directly. “Organisations should be very diligent in ensuring that staff understand how they're using the technology…and the safeguards that they have in place,” he said.

Both experts agreed: closing the AI gap begins not with machines, but with mindset.