Section 1: Mind The ‘Skills’ Gap

AI training is non-negotiable for competitiveness

Artificial intelligence (AI) is reshaping the workplace, offering organisations unprecedented opportunities to innovate and scale. Yet, a significant readiness gap threatens this potential. Across UK organisations, there is a disconnect between ambition and execution, with misalignments in leadership, workforce preparedness, and training access hindering progress.

0%

of HR leaders claim to have provided AI training in the past year

0%

of employees report receiving it

0%

rate their instruction as highly effective

Among younger employees, 74% use AI tools regularly, but just 52% have received formal training — and only 14% rate this training as highly effective. As a result, one-third of UK employees feel unprepared to adopt AI in the next 1–3 years.

0%

report using AI tools regularly

0%

have received formal training

0%

rate their instruction as highly effective

This discrepancy reveals a fundamental training challenge: organisations may be investing in training, but many employees are yet to feel the impact. Among younger employees, 74% report using AI tools regularly, yet only half (52%) have received formal training. Of those trained, just 14% rate their instruction as highly effective. This leaves 1 in 3 UK employees feeling unprepared to adopt AI in the next 1–3 years.

The gap is even more pronounced in leadership readiness. Middle managers are emerging as key adopters of AI, with 7 in 10 integrating it into their daily workflows.

In contrast, 52% of executives have never knowingly used AI tools, eroding confidence across teams. Only 55% of employees trust their managers to lead digital transformation effectively, and just 4 in 10 believe they can adopt AI tools themselves.

While HR leaders remain confident—88% believe their management teams are ready to lead AI adoption—only 44% of employees agree their organisations are prepared. Among Gen Z and Millennial employees, optimism reaches 57%, but large portions of the workforce are left behind, exposing a need for tailored, targeted AI training, or risk stalling AI integration altogether.

0%

believe their management teams are ready to lead AI adoption

0%

agree their organisations are prepared

0%

Among Gen Z and Millennial employees

McKinsey’s 2024 insights on generative AI adoption shed light on the broader opportunity—and challenge. Remarkably, 88% of employees using generative AI are in non-technical roles, highlighting its untapped potential beyond specialised teams. However, this also highlights a critical need for cross-departmental AI literacy, as only 12% of generative AI users occupy technical positions.

Organisations that embrace AI across all functions are 2.5 times more likely to prioritise reskilling and upskilling, capturing substantial cost efficiencies and revenue gains. Many organisations fail to utilise their in-house early-adapters who are forming AI-pockets within parts of the business.

Globally, organisations are accelerating AI adoption, with implementation in at least one business function rising from 50% to 72% in 2024 (McKinsey). For UK organisations, closing the readiness gap is an urgent priority. Over the next 12 months, investing in fundamental AI training, equipping leaders with AI capabilities, and ensuring equitable access to resources will be key. The stakes are high, but so is the potential.

Organisations that act decisively will future-proof their workforce, turn disruption into opportunity, and establish a competitive edge in an AI-driven workplace.

Contribution by Jake O’Gorman

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