AI Readiness Gap Challenges Global Enterprises
- Despite rising returns on AI investments, many organizations face infrastructure, talent, and regulatory hurdles.
Kyndryl has published its second annual Global Readiness Report, based on responses from 3,700 senior executives across 21 countries. The findings reveal a mix of optimism and concern, as companies report growing returns from artificial intelligence while grappling with modernization pressures, workforce readiness, and fragmented regulatory environments. Although 90 percent of organizations believe they have the tools and processes to scale innovation, more than half cite technology limitations, and fewer than one-third say their employees are prepared to use AI effectively. This disconnect presents both a challenge and an opportunity for business leaders.
Confidence vs. Capability
The report highlights a persistent gap between perceived and actual readiness. While most executives rate their IT infrastructure as “top-tier,” only 39 percent believe it is truly future-proof. Positive returns on AI investments have increased—54 percent of respondents reported gains, up twelve percentage points from 2024—yet 62 percent remain stuck in pilot phases. Despite confidence in their ability to test and scale ideas, many organizations find their foundational systems are slowing innovation.
AI’s impact on the workforce is widely acknowledged, with 87 percent expecting significant changes to job roles within a year. However, only 29 percent feel their employees are equipped to use AI effectively, and technical skill shortages remain a concern. Cultural barriers also persist: nearly half of CEOs say their organizations inhibit innovation, and 45 percent cite slow decision-making as a limiting factor. These internal challenges may hinder progress even as external pressures mount.
Cloud Strategy Under Pressure
Geopolitical shifts and regulatory fragmentation are prompting companies to reassess their cloud infrastructure. While cloud adoption has delivered clear benefits, concerns about data sovereignty and compliance are reshaping strategic priorities. Seventy-five percent of leaders worry about geopolitical risks in global cloud environments, and 65 percent have already adjusted their strategies. Responses include repatriating data, reevaluating vendors, and shifting toward private cloud solutions.
The report notes that many cloud architectures evolved organically rather than through deliberate planning. Seventy percent of CEOs admit their cloud environments were shaped more by circumstance than strategy. As regulations tighten and data governance becomes more complex, organizations must rethink how they store, process, and protect information. These shifts are influencing infrastructure decisions across industries and regions.
Talent, Culture, and the Path Forward
Workforce readiness is emerging as a critical factor in scaling AI adoption. While most leaders agree that AI will transform roles, few believe their teams are prepared, and many cite a lack of technical skills. Organizational culture also plays a role, with nearly half of respondents acknowledging that internal dynamics slow innovation. To move forward, companies must foster learning environments and align leadership goals with transformation efforts.
The report identifies a group of “pacesetter” organizations that outperform others in key areas. These leaders are 32 percent less likely to cite infrastructure as a barrier to innovation and 30 percent more confident in their cloud’s regulatory adaptability. They also report 20 percent fewer cybersecurity-related outages over the past year. Their success stems from deliberate investment in culture, training, and strategic alignment.
“There is a significant readiness gap between where companies are and where they hope to be in terms of AI,” said Martin Schroeter (pictured), president and CEO of Kyndryl. “While 90% of organizations believe they have the tools and processes to drive innovation, more than half face technology barriers, and less than a third say their workforce is truly ready to embrace AI. Bridging this gap is both a challenge and an opportunity.”
