Most businesses are still failing to align AI investments with workforce readiness, according to Kyndryl’s People Readiness 2025 report, with 71 per cent of leaders admitting their workforces are not yet ready to successfully leverage the technology.

Kydryl, leading global IT services firm, which also has offices in Cyprus, revealed the global study, based on a survey of more than 1,000 senior business and technology executives across 25 industries and eight geographies, found that 95 per cent of organisations have already invested in AI.

However, just 14 per cent are deploying it for commercial use while future-proofing their workforces.

Michael Bradshaw, Global Practice Leader for Applications, Data and AI at Kyndryl, said “Only a small group of businesses have been able to harness AI successfully for business growth.”

He added that, “while data architecture and technology infrastructure are key pieces of the puzzle, organisations that do not prioritise their workforces will miss out.”

According to the report, 51 per cent of leaders believe their organisations lack the skilled talent needed to manage AI. At the same time, 45 per cent of CEOs think most employees are resistant or even openly hostile to it.

Workforce readiness also varies by industry, with banking, financial services and insurance showing the highest levels of preparedness, while healthcare is trailing behind.

Although generative AI tools are the most popular use case, only four in ten leaders said they use AI-powered insights to enhance decision-making or unlock growth. Just one-fifth reported that the primary use of AI at their organisation is to develop new products and services.

Still, the report points to a small subset of AI Pacesetters that are seeing results by tackling three key barriers: organisational change, lack of employee trust, and skill gaps.

These companies are three times more likely than others to report a fully implemented change management strategy for AI in the workplace.

They are also 29 per cent less likely to cite fears around AI affecting employee engagement, and 67 per cent more likely to say their organisation has the tools and processes to accurately inventory employee skills. Four in ten report no skills challenges at all.

Maryjo Charbonnier, Chief Human Resources Officer at Kyndryl, said “Preparing your workforce for the era of AI is easy to say, hard to do and an urgent imperative for business leaders.”

She explained that, “At Kyndryl, we run an entire ecosystem of culture and systems that readies our people and our business for continuous change.”

According to her, “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 report also revealed a split between top-level executives. CEOs were far more likely to say their organisation is still in its early stages of AI, and two and a half times more likely to state that their infrastructure is inadequate to support it.

They also appeared more inclined to rely on external hiring rather than upskilling their own staff.

Commenting on the Cypriot landscape, Marios Kapiris, Managing Director of Kyndryl Cyprus, said “The AI Workforce Impact Report confirms a reality we’re already witnessing in Cyprus: AI is reshaping roles across industries, not replacing them.”

He added that, “The challenge for Cypriot businesses isn’t just about adopting AI, it’s about re-skilling people to embrace AI in the workplace.”

As Kapiris put it, “At Kyndryl Cyprus, we are helping organisations embrace this shift by supporting their workforce transformation strategies, ensuring technology and talent evolve together.”