New research reveals a significant skills gap among UK businesses preparing to adopt artificial intelligence. It found that, while 91% say they are ready to embrace the technology, one in three admit they lack the skills to implement it effectively.
The research from MHR, based on responses from over 1,000 UK business leaders, highlights a growing divide between AI ambition and readiness. Around two-thirds (64%) now see AI as a high strategic priority, but fewer than half (48%) feel fully prepared to deploy it in key areas of their business. Some of the barriers are familiar: legacy systems, fragmented processes, and human error. More than one in three respondents (35%) say human error in data entry is still an issue, pointing to a lack of clarity around how AI tools should be used, and 14% admit they don’t know where to start with AI at all.
However, where businesses get adoption right, the benefits can be substantial, individually and collectively. Effective use of AI and automation has the potential to save time, reduce errors, and boost productivity – not by replacing people, but empowering them to do their best work. The report also highlights where AI is already making a difference across UK organisations:
- 62% are using it for financial forecasting to inform financial planning and decision-making
- 60% to support day-to-day processes via co-pilots
- 58% to improve workflow automation
- 52% for content creation, including job descriptions and employee learning courses
There is no shortage of AI ambition, and the opportunity for transformation is real. But without the right skills and employee engagement, strategies risk stalling at the start. The organisations winning with AI are those that start from the ground up – reskilling their people, involving them in shaping AI’s role within the business, and fostering a culture that embraces change responsibly and empathetically. Technology on its own won’t deliver the value; people and processes will.
The research also reveals that skills gaps are only part of the picture. Cultural and ethical challenges are holding some organisations back. While AI is often positioned as a strategic lever, it’s not always being implemented inclusively. Just 38% of organisations involve employees in shaping AI use, while a minority say ethical guidelines are unnecessary. Ethical concerns now outpace financial ones: 35% cite ethics as a barrier to AI adoption, compared to 27% who point to budget constraints.
Despite significant investment, many businesses struggle to move beyond initial AI projects. AI is often introduced in a top-down manner, with limited input from those expected to use it daily. This leads to uneven adoption: some employees experiment independently, while others disengage due to unclear guidance or lack of trust. Without a clear, inclusive strategy, AI tools risk being underused, limiting their impact.
Embedding AI successfully is really a change management challenge. It needs to enhance human skills, not bypass them, and that means bringing employees into the conversation early. Understanding where AI can support people in their roles, and managing adoption with care, is the only way to move beyond pilot mode and make AI stick.
