The rapid pace of enterprise AI adoption is creating a significant gap between technological deployment and workforce preparedness, according to new research from technology services firm Kyndryl. The company's 2026 People Readiness Report, based on a survey of 1,100 business and technology leaders across eight countries, found that only 23% of organizations believe they are ready to support AI at scale. This disconnect is emerging as a critical barrier to achieving the transformative outcomes that businesses seek from AI investments.
The survey results reveal a striking disparity: while 57% of organizations have broadly deployed AI or embedded it into core business processes, and 77% have scaled generative AI across multiple functions, workforce readiness lags significantly behind. Only 35% of respondents said their IT infrastructure is prepared for AI, and even fewer—25%—believe their organizational culture is ready. Governance and compliance readiness stands at just 23%. These figures underscore that the human and organizational dimensions of AI adoption are proving far more challenging than the technical aspects.
The Pacesetter Advantage
However, the research identifies a small but instructive subset of organizations—dubbed “pacesetters”—that are bucking the trend. These companies, representing just 9% of respondents, have invested heavily in workforce readiness while simultaneously redesigning jobs and workflows around AI. The results are compelling: pacesetters were 1.5 times more likely to report AI-driven revenue growth and 1.6 times more likely to achieve innovation-related outcomes compared to their peers. This finding suggests that the organizations paying closest attention to the human side of AI are reaping the most significant rewards.
“This is a critical moment for global enterprises as they race to adopt AI, redesign workflows, and pursue innovation, yet they’re finding that their greatest assets—their people—need more attention,” said Kim Basile, CIO at Kyndryl, in a statement. “The data shows that the organizations investing in people—whether it’s rethinking roles and workflows, dedicating resources for upskilling and retraining, or guiding employees through change—are experiencing positive outcomes at a much higher rate.”
The report emphasizes that workforce readiness is not merely about training employees on new tools; it encompasses a broader transformation of roles, decision-making processes, and organizational culture. Sixty-eight percent of respondents said they expect workforce skills and role structures to be fully AI-ready by the end of the year, and 33% anticipate similar readiness for organizational culture and change-management capabilities. Yet these optimistic projections may be tempered by the reality that nearly 80% of leaders believe AI adoption will outstrip their organization’s ability to adapt its workforce, governance structures, and operating model.
Challenges in Achieving Desired Outcomes
Organizations are struggling to convert AI investments into tangible business results. Improving operational efficiency and productivity remains the top priority, cited by 34% of respondents, followed by IT modernization (27%), risk management and security improvements (25%), business innovation (25%), and AI-driven revenue growth (24%). Yet only 32% reported achieving even one of their top two desired outcomes, and a mere 11% said they had achieved both. The most commonly realized outcome was improved operational efficiency, reported by 38% of organizations. Far fewer achieved AI-driven revenue growth (14%), IT modernization (13%), or innovation in new products and services (11%).
Workforce and skills issues are central to these struggles. Nearly half of respondents (49%) identified skills and talent gaps as a major obstacle to executing their AI strategies, second only to cybersecurity concerns (52%). Moreover, 52% said it has become more difficult over the past year to find employees with the skills needed to support their organization’s AI strategy. This talent shortage is prompting many companies to focus on upskilling existing employees: 94% of respondents believe AI will make upskilling current workers more effective than hiring external talent.
“AI’s ability to reshape work is challenging organizations to reshape their workforce more rapidly than ever before,” said Mark Paulek, Kyndryl’s chief human resources officer. “The leaders pulling ahead are aligning skills, roles, and decision-making with how work is actually changing.”
The Path Forward: Integrating People and Technology
Kyndryl’s research underscores a fundamental shift in how organizations must approach AI. The technology itself is advancing quickly, but the real competitive advantage lies in how companies manage the transition. Those that treat workforce readiness as an afterthought risk falling behind, while those that embed change management and role redesign into their AI strategies are more likely to succeed. The report suggests that investing in people—through upskilling, clear communication, and structural changes—can unlock the full potential of AI. As enterprises move beyond experimentation and focus on measurable business outcomes, the ability to align human capital with technological capabilities will become the defining factor in AI success.
Looking ahead, the report indicates that the organizations most likely to thrive are those that adopt a holistic approach, combining technology deployment with deliberate workforce planning. This includes redesigning roles to leverage AI capabilities, implementing formal change-management programs, and fostering a culture that embraces continuous learning. While the challenges are significant, the evidence from pacesetters shows that the rewards of such an approach—in terms of growth, innovation, and efficiency—are substantial. For the majority of organizations still struggling to achieve their AI goals, the message is clear: prioritizing people is not just a nice-to-have, but a strategic imperative.
Source: Network World News