Business

UK businesses struggle to harness full potential of AI due to skills gap and cultural barriers

Tuesday, 2 December 2025 8:13AM UTC

Despite widespread optimism about AI’s benefits in driving innovation and productivity, UK companies face significant challenges in workforce training and cultural acceptance, risking underperformance in their AI ambitions amid lagging adoption compared to Asian economies.

Business leaders across the UK and the wider EMEA region are actively deploying artificial intelligence (AI) to drive innovation and improve operational efficiency. A recent IBM Consulting report, ‘The Race for ROI’, highlights that UK firms view AI as a vital tool for freeing up time for high-impact tasks, fostering innovation, enhancing creativity, and supporting strategic decision-making. About 41% of the 500 surveyed UK senior leaders expressed expectations that AI would advance innovation and enable more engaging work, while nearly the same proportion anticipated improvements in strategic planning. This optimism echoes broadly across EMEA, where 79% of senior leaders either use or plan to use AI to accelerate innovation cycles by simulating scenarios and testing hypotheses. Overall, 92% expect to meet their AI-related ROI goals within the next two years.

However, this widespread confidence belies certain critical challenges. Studies reveal a disconnect between firms’ perceptions of their AI-driven innovation and measurable outcomes. For instance, UK companies tend to overestimate their technological innovation, with fewer than one in four having successfully commercialised any technology products or services. Furthermore, while some niche startups achieve notable returns, fewer than one in ten companies reports significant ROI from AI initiatives. Experts attribute these mixed results in part to a lack of investment in human capital: only around 38% of organisations prioritise training and upskilling related to AI transformations, even as 62% acknowledge that much of AI’s potential remains untapped.

The situation is particularly acute in the UK. Although 66% of UK enterprises report productivity improvements from AI and 63% acknowledge operational benefits, only 45% offer AI training across companies or within roles. A combination of internal resistance, cultural barriers, and insufficient workforce development stifles broader AI adoption and scalability, according to an IBM report. This raises concerns that many businesses may be underestimating the need to prepare their staff for AI-related changes, opting instead to rely on AI to replace roles rather than enhance capabilities. IBM UK and Ireland’s chief executive, Leon Butler, emphasises that unlocking AI’s full value depends heavily on workforce transformation and comprehensive upskilling, which can foster resilience and sustained innovation.

Comparatively, the UK lags behind leading Asian economies in AI enterprise adoption. Research indicates that only 37% of large UK companies have actively deployed AI, trailing behind countries such as India (59%), the UAE (58%), and Singapore (53%). Furthermore, 41% of UK enterprises are still experimenting without full deployment. Barriers such as skill shortages, high costs, and data complexity hamper broader adoption. These issues underscore the importance of bridging skill gaps to accelerate AI integration.

Efforts to address these challenges are underway. The UK government has partnered with major tech firms, including Amazon, BT, Google, IBM, Microsoft, and Sage, in an initiative aiming to provide AI skills training to 7.5 million workers. This collaboration forms part of a broader strategy to grow the UK’s AI capabilities and economic competitiveness, reflecting a recognition that workforce development is critical to sustaining leadership in this space. Additionally, a consortium of industry leaders, including IBM, has launched programmes to equip millions of individuals worldwide with digital and AI skills by 2030, reflecting a global commitment to managing AI’s workforce impact.

Academic research further supports the need for educational reforms to prepare workers for AI-driven transformations. A strategic report commissioned by IBM highlights profound skills shortages as fundamental obstacles to effective AI adoption across several countries, including the UK. It calls for well-structured educational pathways tailored to a rapidly evolving labour market shaped by AI technologies.

Looking ahead, businesses across EMEA, including the UK, anticipate increased AI investment in coming years, focused equally on innovation and ROI rather than immediate financial savings. Yet, without significant strides in workforce transformation and addressing cultural resistance, the promise of AI risks remaining partially unrealised. In this context, sustained commitment to upskilling and inclusive training initiatives emerges as paramount for companies seeking to harness AI’s transformative potential fully.

📌 Reference Map:

^[1] (Consultancy UK) - Paragraphs 1, 2, 3, 5
^[2] (IBM Newsroom) - Paragraph 2, 3, 4
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^[5] (UK Government) - Paragraph 5
^[6] (TEHA Group / IBM) - Paragraph 7
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Source: Noah Wire Services

More on this

https://www.consultancy.uk/news/amp/42319/emea-leaders-must-invest-in-human-talent-to-make-most-of-ai - Please view link - unable to able to access data
https://newsroom.ibm.com/2025-10-28-IBM-Report-Two-Thirds-of-UK-Firms-Gain-from-AI-Reskilling-Key-to-Unlocking-Greater-Productivity - An IBM report reveals that 66% of UK enterprises are experiencing significant AI-driven productivity improvements, with 63% of senior leaders citing increased operational efficiency. However, nearly two-thirds (62%) of organisations are yet to tap into the full potential of AI, highlighting a critical need for a greater focus on workforce transformation and AI skills training. The study also found that 67% of UK business leaders say internal resistance and cultural barriers are stalling the rollout of pilot AI projects. A key driver of this hesitation may be the lack of investment in workforce development: only 45% of UK enterprises currently offer company-wide or role-specific AI training. Even fewer—just 38%—are prioritising inclusive workforce transformation to ensure upskilling opportunities reach employees across all roles, ages, and levels of technical expertise. To help close this gap and prepare the UK workforce for the AI jobs of the future, initiatives like the UK government's drive to deliver AI skills training to 7.5 million UK workers is a step in the right direction. Boosting technology skills across the economy is key to the UK maintaining its leadership position in AI.
https://uk.newsroom.ibm.com/UK-Lags-Leading-Asian-Economies-on-Enterprise-AI-Adoption-New-IBM-Study - A new IBM study found that more than a third of UK organisations with over 1,000 employees are actively using AI, placing the UK behind leading Asian economies. Early adopters are leading the way, with 40% of the enterprises already working with AI intending to accelerate and increase investment in the technology. The study also found that 37% of UK enterprise-scale companies report having actively deployed AI, compared to 59% in India, 58% in the UAE, 53% in Singapore, and 50% in China. Additionally, 41% of large UK enterprises are currently exploring or experimenting with AI but have not deployed their models. The top barriers preventing deployment include limited AI skills and expertise (38%), high costs (31%), and data complexity (29%).
https://uk.newsroom.ibm.com/New-IBM-research-shows-AI-investment-in-Europe-is-anticipated-to-rise-in-2025-as-businesses-seek-to-build-on-promising-AI-progress - IBM research shows that AI investment in Europe is anticipated to rise in 2025 as businesses seek to build on promising AI progress. 80% of IT decision-makers across the UK, France, Germany, and Spain (EMEA) reported their organisations have already made positive progress on their AI strategies in 2024. Over half (53%) report their organisation will increase AI investment in 2025. Despite limited return on investment (ROI) so far, organisations are betting on AI in the long term, prioritising innovation and productivity gains over traditional financial savings. The study also found that 40% of EMEA IT decision-makers reported that AI investment was equally innovation-driven and ROI-driven, with just 5% reporting their strategy was exclusively ROI-driven.
https://www.gov.uk/government/news/tech-giants-join-government-to-kick-off-plans-to-boost-british-worker-ai-skills - Leading tech firms have partnered with the UK government to deliver AI skills training to 7.5 million UK workers. Companies such as Amazon, BT, Google, IBM, Microsoft, and Sage have joined discussions to develop a programme aimed at enhancing AI skills across the UK workforce. This initiative is part of the government's Plan for Change, aiming to boost AI skills for a fifth of UK workers, thereby unlocking economic growth and high-paid jobs. The collaboration underscores the importance of upskilling the workforce to fully leverage AI technologies and maintain the UK's competitive edge in the global market.
https://uk.newsroom.ibm.com/Addressing-the-AI-Transition-in-Skills-and-Jobs-A-Strategic-Report-for-the-Future-of-Education-and-Training - A report titled 'Educational Pathways for the AI Transition in Skills and Jobs' reveals critical insights into the importance of education and training in preparing the workforce for the AI transition. Published by TEHA Group and commissioned by IBM, the report highlights that despite the growing use of AI solutions, a significant skills shortage remains a major barrier to effective adoption. To address this gap, the report outlines key recommendations and emphasises the urgent need for educational pathways to equip workers for the AI-driven future. The study focuses on six countries—France, Germany, Italy, Japan, the United States, and the United Kingdom—and the challenges related to demographic and labor market shifts.
https://newsroom.ibm.com/2024-04-04-Leading-Companies-Launch-Consortium-to-Address-AIs-Impact-on-the-Technology-Workforce - A consortium of leading companies, including IBM, has been launched to address AI's impact on the technology workforce. The consortium aims to prepare the workforce for the AI era by developing trustworthy technologies and providing workers access to opportunities to reskill and upskill as AI adoption changes ways of working and creates new jobs. IBM's goal is to skill 30 million individuals by 2030 in digital skills, including 2 million in AI. Other consortium members have set similar ambitious targets, highlighting the collective responsibility to equip the workforce for the future of work in an AI-driven world.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative is recent, published on 2 December 2025. It references an IBM Consulting report titled 'The Race for ROI', which aligns with IBM's report from 28 October 2025. The report's findings are consistent with previous IBM studies, indicating a lack of new information. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.

Quotes check

Score: 7

Notes: The article includes a quote from Leon Butler, IBM UK and Ireland's chief executive: 'Unlocking AI’s full value depends heavily on workforce transformation and comprehensive upskilling, which can foster resilience and sustained innovation.' This quote is identical to one found in IBM's report from 28 October 2025. The identical wording suggests potential reuse of content.

Source reliability

Score: 9

Notes: The narrative originates from Consultancy.uk, a reputable UK-based consulting news platform. It references IBM's official reports and includes a direct quote from IBM's chief executive, Leon Butler. The UK government's involvement in AI skills training initiatives is also cited, adding credibility.

Plausibility check

Score: 8

Notes: The claims about AI adoption rates and the need for workforce upskilling are consistent with previous IBM studies and UK government initiatives. The article highlights that 66% of UK enterprises report productivity improvements from AI, and 63% acknowledge operational benefits, which aligns with IBM's findings from 28 October 2025. The emphasis on the need for comprehensive upskilling is supported by IBM's report 'Addressing the AI Transition in Skills and Jobs', published on 24 January 2025.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative is recent and references credible sources, including IBM's reports and UK government initiatives. However, it recycles content from previous publications, including direct quotes from IBM's chief executive, suggesting potential reuse of material. The lack of new information and the reuse of content raise questions about the originality of the report.

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