Almost half of CEOs say most employees are resistant or openly hostile to AI: report

Companies must do a better job of upskilling workers when it comes to artificial intelligence (AI), according to a recent report.

Currently, 71 per cent of employers say their organisation’s workforce is not ready to successfully leverage AI technology in the workplace, reports Kyndryl, a provider of enterprise technology services.

This is the case even though 95 per cent of businesses have invested in AI.

Maryjo Charbonnier, CHRO at Kyndryl, is urging employers to better prepare workers for AI integration.

"Preparing your workforce for the era of AI is easy to say, hard to do and an urgent imperative for business leaders…"

"It’s about anticipating the business impacts of AI, understanding and integrating your skill data with your customer demand, and having a multi-pronged approach for equipping employees to build the skills they need and learn to effectively use generative AI tools in their work."

The majority of employers are already using generative AI to optimise processes and increase efficiency.

"Despite widespread attempts at implementation, most organisations are not currently benefitting from game-changing use cases that will drive new products and services for their customers. Only 21 per cent of leaders say their primary AI use is incorporating the technology into products and services," says Kyndryl.

"While generative AI tools remain the most popular use case reported by those surveyed, a majority of respondents are not using the technology outside of those tools. Only 4 in 10 leaders are using AI-powered insights to enhance decision-making or unlock growth for their business."

Why are companies not benefitting fully from AI?

Chief executive officers (CEOs) and chief technology/information officers (CTOs/CIOs) cite various barriers to AI adoption, according to Kyndryl’s survey of more than 1,000 senior business and technology executives across 25 industries and eight regions.

Over nine in 10 (92 per cent) of small- and medium-sized business (SMBs) leaders are confident in their company's growth prospects over the next three years, and many are banking on GenAI, finds a previous KPMG study.

“Pacesetters” are taking distinct steps to ensure their workforces are empowered to fully leverage AI — and they are proving effective in driving positive business outcomes, the Kyndryl report notes.

Over two in three (68 per cent) CEOs also say there is a lack of skilled talent to manage AI technology within their organisation.

And 45 per cent of CEOs believe most employees are resistant or even openly hostile to AI.

Here’s how to navigate employee resistance to AI, according to one expert.

Fully integrating AI

Currently, 69 per cent of organisations are using AI either to unlock growth or primarily to create products and services for customers.

Also, 35 per cent are fully integrating AI across their operations, and 29 per cent of business leaders say their workforce is ready to successfully leverage AI, finds Kyndryl.

However, few employers are considered “pacesetters” — those that are using AI to unlock growth or primarily create products and services, and who also report high workforce readiness.

Pacesetters are uniquely addressing three key barriers that inhibit AI adoption, says the report, and they are seeing benefits from their efforts in the following areas:

1. Organisational change management: AI pacesetters are three times more likely than others to report a fully implemented change management strategy for AI in the workplace.
2. Lack of employee trust in AI: Pacesetters are 29 per cent less likely to cite fears around AI negatively affecting employee engagement.
3. Skill gaps: Pacesetters are 67 per cent more likely to agree their organisation has the tools and processes to accurately inventory existing employee skills. Four in 10 report no skills challenges at all.

The Manitoba government—in partnership with the Manitoba Chambers of Commerce (MCC) and Winnipeg Chamber of Commerce (WCC)—is investing $2 million in an AI training initiative to help SMBs dismantle common barriers to AI adoption.