Global workforces wholly unprepared for AI revolution as businesses risk falling behind, says i4cp report

Originally published at HRreview by William Furney

The majority of organisations are ill-equipped to help their employees navigate the rapid adoption of artificial intelligence (AI) technologies, according to a new study of enterprises around the world.

With 79% of companies reporting their workforces are unprepared to use generative AI (GenAI) effectively, according to the study, experts warn that the gap in readiness could undermine competitiveness and productivity.

The report, Workforce Readiness in the Era of AI by the Institute for Corporate Productivity (i4cp), highlights the opportunities and challenges posed by AI. While AI adoption in HR has nearly doubled from 22% in 2023 to 41% in 2024, organisations are struggling to scale its use effectively and equip employees with necessary skills, the report found.

Workforce Fears and Readiness Divide

As companies increasingly adopt AI, employees are experiencing something of a paradox, according to the report’s findings. Those working in organisations scaling AI are more likely to receive training but are also twice as likely to fear being replaced by the technology.

According to the study, 55% of employees in AI-intensive organisations worry about job displacement, compared to 25% in organisations that have yet to explore AI’s potential.

The report identifies a critical divide between companies embedding AI into workflows and those lagging behind. Organisations in the advanced stages of AI adoption report stronger market performance, highlighting the competitive advantage of an AI-ready workforce.

Training Key to Unlocking AI Potential

Top global companies are addressing the skills gap through innovative training programs, says the i4cp report. Accounting giant EY, for example, introduced foundational AI training as part of its development programme, with over 14,000 employees engaging in AI coursework within the first month.

Software firm ServiceNow improved workflow efficiency by training employees to use AI tools, reducing case review times by 37%.

And online property marketplace Zillow launched an AI Learning Lab, combining live sessions with hands-on tutorials to teach employees how to integrate AI into performance reviews and productivity workflows.

Despite these efforts, the report emphasises that AI readiness alone is not enough. A future-ready workforce — one that’s capable of continuous learning and adapting to technological and market changes — is twice as important as AI-specific skills for improving market performance.

HR’s Role in Scaling AI

Human resources departments play a pivotal role in AI integration. High-performing organisations are four times more likely to involve HR in AI-related governance and twice as likely to have HR lead change management initiatives, according to the i4cp report.

Companies like BNSF Railway and Unilever demonstrate, it says, how HR can drive AI adoption by ensuring employee engagement and aligning training with organisational goals.

The Next Frontier: Agentic AI

Looking ahead, the report highlights the rise of agentic AI – technologies capable of performing complex tasks autonomously. Preparing workforces for this evolution requires a shift from task-specific training to goal-oriented learning, enabling employees to design workflows and optimise collaboration with AI systems.

Recommendations for Organisations

To prepare for the AI-driven future, the i4cp report advises organisations to:

  • Engage employees in identifying tasks suitable for AI automation.
  • Scale AI training to all levels of the workforce, including leadership.
  • Implement agile workforce planning to address skills gaps dynamically.
  • Create a culture of adaptability and continuous learning.

The rapid evolution of AI technologies presents both an opportunity and a challenge for organisations, say a range of industry experts. Those that prioritise workforce readiness, embed future-focused training and empower HR to lead AI initiatives will be better positioned to navigate disruption and thrive in the era of AI.