Skills gap

Kyndryl’s 2025 Readiness Report, based on a survey of 3,700 leaders, reveals that while AI investments are yielding increased ROI, scaling AI remains a challenge. Many organizations struggle with outdated IT infrastructure, skills gaps, and a complex regulatory landscape. Despite confidence in tools and processes, foundational tech often hinders innovation. Geopolitical pressures also force cloud strategy reevaluation. Companies are increasing AI spending, prioritizing cybersecurity, and recognizing the need to address talent and culture to fully realize AI’s potential.

A Red Hat report highlights a gap in the UK: 89% of organizations struggle to realize AI value despite projected spending increases. AI and security are top IT priorities, alongside cloud adoption, yet high costs, data privacy, and legacy system integration pose obstacles. “Shadow AI” is prevalent, underscoring governance issues. Open source is critical for AI strategies, particularly agentic AI adoption. Skills shortages persist, especially in agentic AI. While 83% see the UK as a potential AI leader, talent, funding, and private sector engagement are limiting factors.