A new global report by Kyndryl has revealed that despite widespread adoption of artificial intelligence technologies, only a small percentage of companies have successfully aligned their workforce strategies to harness its full business potential. The “People Readiness Report” uncovers significant gaps in workforce preparedness, skills, and change management—even as AI continues to be rapidly integrated into core operations.
AI adoption is high, but impact remains limited
The Kyndryl report draws on insights from over 1,000 senior business and technology leaders across 25 industries and eight countries. While 95% of global and Indian organizations have already implemented some form of AI, only 14% are actively using it in commercial applications with a future-ready workforce.
The most widely reported use cases remain generic, with less than 20% of leaders saying AI is being used to create new products or services. Only 40% are leveraging AI for actionable business insights. This signals a broader challenge: while the technology is in place, the human systems to support it are lagging.
India stands out as a relative bright spot. Thirty-seven percent of Indian leaders report their workforce is currently prepared for AI, and 57% believe their teams are ready to navigate future developments. Notably, 41% of Indian organizations have adopted human-centric AI systems that prioritize employee well-being over productivity.
Workforce alignment remains a key barrier
Across markets, both CEOs and CIOs acknowledge a shortfall in skilled talent. Over 50% of global and Indian leaders say their organizations lack the expertise required to manage and scale AI. Integration with legacy systems remains another hurdle—61% of Indian executives flagged this as a major concern.
Interestingly, CEOs are twice as likely as CIOs and CTOs to say their infrastructure is not yet adequate for AI deployment. They are also more inclined to source external talent rather than invest in upskilling internal teams—highlighting a divergence in strategic priorities.
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The Kyndryl report also shows that resistance to AI remains widespread. Forty-five percent of global CEOs believe employees are either resistant or hostile to AI adoption, reinforcing the need for stronger communication and trust-building within organizations.
Pacesetters are closing the readiness gap
A small group of organizations identified as “AI Pacesetters” are outperforming peers by making strategic workforce decisions alongside AI deployment. These companies are:
3x more likely to have a fully implemented change management strategy for AI
29% less likely to cite employee trust issues
67% more likely to have systems that accurately track employee skills
Four in ten of these organizations report facing no skills-related challenges at all—underlining the business value of early, holistic workforce planning.
India leads in talent readiness, but challenges persist
India continues to lead globally in workforce readiness for AI. Seventy-two percent of Indian business leaders prioritize upskilling existing employees, and 95% of Indian firms have established AI governance frameworks. These efforts have positioned Indian enterprises ahead in adopting responsible and scalable AI.
However, challenges remain. Skills gaps, integration issues, and uneven leadership perspectives still hinder progress. The report calls on organizations to invest not only in AI tools, but also in long-term talent development and organizational readiness.
As AI reshapes the workplace, Kyndryl findings serve as a critical reminder: building future-proof enterprises requires more than just technology—it demands intentional, people-first transformation.
