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Artificial intelligenceAutomationLatest NewsLearning & developmentHR Technology

AI adoption being hampered by skills gaps – report

by Nic Paton 13 Aug 2025
by Nic Paton 13 Aug 2025 Shutterstock
Shutterstock

UK businesses are still struggling with significant skills gap when it comes to adopting AI effectively, research has suggested.

While more than nine out of 10 firms (91%) say are ready to embrace the technology, one in three admit they lack the skills to implement it effectively, according to the poll of 1,003 HR, payroll and finance leaders by HR and payroll software firm MHR.

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Around two-thirds (64%) agreed artificial intelligence is a high strategic priority for their business, yet fewer than half (48%) felt fully prepared to deploy it in key areas. Legacy systems, fragmented processes, and human error were all barriers to implementation, the research concluded.

More than one in three respondents (35%) said human error in data entry was still an issue, pointing to a lack of clarity around how AI tools should be used, and 14% admitted they did not know where to start with AI at all.

The report also highlighted where AI is already making a difference across UK organisations, with nearly two-thirds (62%) using it for financial forecasting to inform financial planning and decision-making.

A similar percentage (60%) were now using artificial intelligence to support day-to-day processes via co-pilots, more than half (58%) were using it to improve workflow automation, and 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,” said Anton Roe, CEO of MHR.

“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,” he added.

Separately, research has argued that most workers are more than happy to collaborate and work with AI tools that help them to do their job better – but draw the line at being ‘managed’ by artificial intelligence.

A poll of 2,950 decision-makers and software implementation leaders for AI platform Workday has illustrated how artificial intelligence software is transforming day-to-day work – but that there are limits.

It looked at the role of ‘AI agents’, or AI-based software that autonomously performs tasks alongside workers or in the background.

The poll found that, while three-quarters of workers polled (75%) are comfortable with the idea of teaming up with AI agents day to day, just 30% were comfortable with the idea of actually being managed by such software.

While 82% of organisations were expanding their use of AI agents, there also needed to be a recognition that employees will draw a line between how they are and are not willing to work with AI.

Just a quarter of workers polled (24%) said they would be comfortable with AI agents operating in the background without human knowledge.

Establishing clear boundaries for AI was therefore key to building employee trust and driving greater adoption, said Workday.

“This research underscores a crucial path forward: to harness the potential of AI, organizations must focus on building trust through transparency and empowering their people,” it said.

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Nic Paton

Nic Paton is consultant editor at Personnel Today. One of the country's foremost workplace health journalists, Nic has written for Personnel Today and Occupational Health & Wellbeing since 2001, and edited the magazine from 2018.

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