UK firms see AI boost but workforce training lags behind

IBM's latest research indicates that two-thirds of UK businesses are already realising notable productivity improvements from artificial intelligence, but workforce upskilling remains a critical challenge.

AI adoption delivering results

According to the new study titled The Race for ROI, 66% of UK enterprises report significant productivity increases linked to AI, with 63% of surveyed senior leaders citing gains in operational efficiency. These results see UK organisations outperform their European counterparts, with only 55% of EMEA businesses reporting similar operational efficiencies.

The study, which surveyed 3,500 business leaders across EMEA - including 500 based in the UK from sectors such as banking, public sector, retail, telecommunications, and energy - found that AI and automation are positively impacting the workforce. UK senior leaders highlighted that AI is allowing employees to dedicate more time to high-impact work, such as generating new ideas (41%), engaging in creative projects (41%), undertaking strategic decision-making (39%), strengthening relationships with clients and stakeholders (35%), and driving sustainability initiatives (35%).

However, the report also reveals that nearly two-thirds (62%) of organisations have yet to fully unlock AI's potential, suggesting there is still substantial headroom for further productivity gains.

Lack of workforce development

Despite enthusiasm for AI, the research notes persistent barriers to broader adoption. Internal resistance and cultural factors were cited by 67% of UK business leaders as limiting the rollout of pilot AI projects. Only 45% of UK enterprises currently provide company-wide or role-specific AI training, while just 38% are prioritising inclusive workforce transformation, ensuring upskilling opportunities are available across roles, ages, and technical backgrounds.

Upskilling is increasingly considered essential to realising future benefits, with government initiatives aiming to deliver AI skills training to 7.5 million UK workers broadly welcomed by industry. The inability to develop these capabilities could limit both individual organisational success and the UK's wider ambitions in AI.

Leon Butler, Chief Executive, IBM UK and Ireland, said:

"UK businesses are clearly seeing the productivity benefits of AI, with two-thirds already reporting significant gains. But the real opportunity lies ahead-unlocking even greater value through workforce transformation and upskilling. By investing in AI skills training across all levels, organisations can not only outperform their peers but build a future-ready workforce that drives innovation and resilience."

In terms of financial outcomes, 27% of UK senior leaders indicated their organisations are already benefitting from financial or cost-saving returns as a result of AI initiatives, with a further 34% expecting such outcomes within twelve months.

Growing consumer acceptance

As well as workforce challenges, the IBM research considers consumer attitudes towards AI. A recent survey of over 2,000 UK consumers found that 74% are comfortable with AI assistants participating in decision-making - from personalised recommendations to financial advice. Furthermore, 79% of those surveyed said they trust interactive AI experiences such as chatbots, with 72% expressing that they enjoy using them.

Consumers indicated that convenience and speed (40%), robust data security (37%), and 24/7 support (35%) are the most important factors motivating their adoption of AI-powered services.

This increasing acceptance places pressure on businesses to invest in both development and skills to ensure AI systems are secure, trustworthy, and capable of supporting customer needs efficiently.

Measuring ROI and ongoing challenges

Despite the apparent progress, UK business leaders highlighted major obstacles in measuring the return on investment from AI adoption. The most significant challenges include high upfront investment costs (37%), the difficulty of attributing business outcomes specifically to AI (35%), and a shortage of relevant skills and expertise (31%).

To address these, the report recommends that organisations align AI investments closely with overarching business objectives such as cost efficiency, revenue growth, and upgraded customer experiences.

Sue Daley OBE, Director of Tech and Innovation at techUK, said:

"Adoption and use of AI within organisations of all size and sector presents both opportunities and challenge. While AI offers immense benefits, businesses can only realise its full potential when their workforce is equipped with the right knowledge."

"IBM's Race for ROI study highlights the importance of skills in the face of this issue. To succeed in the long-term, businesses must make AI reskilling a key part of their employee development strategy. This will empower employees to embrace and leverage AI's potential, unlocking its full value across the whole business."

Recommendations for business leaders

The IBM report proposes five priorities for enterprise leaders seeking to accelerate returns from AI:

• Establish a clear AI operating model, such as a federated or hub-and-spoke framework, with defined ownership and responsibilities.
• Promote AI literacy and foster a culture of innovation from the boardroom to entry-level roles.
• Develop a change-ready culture capable of adapting to rapid developments and a shifting AI landscape.
• Understand and mitigate the regulatory, reputational, and operational risks associated with AI through effective governance tools.
• Set up a company-wide "AI Board" to define ethical principles and review higher-risk AI applications before deployment.

The research summarises that UK businesses are already ahead in harnessing AI for operational efficiency, but significant opportunities remain for wider impact through investment in upskilling and workforce transformation.