Kyndryl’s latest global People Readiness Report finds enterprise artificial intelligence (AI) adoption is accelerating rapidly, but many organisations are struggling to prepare their workforce, governance, and operating models to achieve meaningful returns on investment
Kyndryl has released its second annual People Readiness Report, revealing that while organisations are rapidly embedding artificial intelligence (AI) into their operations, workforce readiness remains one of the biggest barriers to realising business value.
The global study surveyed 1,100 senior business and technology leaders across eight countries and found a widening gap between AI adoption and organisational preparedness.
According to the report, 57 percent of organisations now have AI embedded in core business processes or deployed broadly across the enterprise, compared with 35 percent in 2025.
However, despite increased adoption, only 32 percent of organisations have achieved at least one of their top two AI objectives, while just 11 percent have achieved both.
The report also cites Gartner research forecasting worldwide AI spending will reach $2.52 trillion in 2026, representing a 44 percent year-over-year increase.
Kyndryl found that workforce preparedness has declined despite growing investment in AI.
Only 23 percent of business leaders believe their workforce is fully prepared for AI, down six percentage points from 2025. Meanwhile, 79 percent agree that the pace of AI development will outstrip their organisation’s workforce, governance, and operating models.
The report concludes that organisations achieving the strongest AI outcomes are redesigning work alongside technology deployment, rather than focusing solely on AI tools.
“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, Kyndryl.
“The data shows that the organisations 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 identifies a group of organisations described as Pacesetters, representing nine percent of respondents.
These organisations redesign roles around AI, implement structured change management, establish governance guardrails, and build workforce readiness. They are also approximately twice as likely to have fully implemented AI governance across every measured dimension.
As a result, Pacesetters are:
The report also highlights growing concerns around autonomous AI systems
While 81 percent of organisations expect AI agents to make impactful business decisions within the next year, only 25 percent currently have complete trust in AI systems operating without human oversight.
To prepare for AI-enabled workplaces, many organisations are reshaping roles and investing in employee capabilities.
The report found:
According to the report, organisations with stronger governance frameworks also report higher workforce trust in AI and are significantly more likely to achieve transformative business outcomes.
Mark Paulek, Chief Human Resources Officer, Kyndryl, said organisations must rethink how work is structured as AI adoption expands.
“AI’s ability to reshape work is challenging organisations to reshape their workforce more rapidly than ever before,” said Mark Paulek, Chief Human Resources Officer, Kyndryl.
“The leaders pulling ahead are aligning skills, roles and decision-making with how work is actually changing. When people understand their role in that system, trust and performance scale together.”
