Despite widespread optimism about AI’s benefits in driving innovation and productivity, UK companies face significant challenges in workforce training and cultural acceptance, risking underperformance in their AI ambitions amid lagging adoption compared to Asian economies.
Business leaders across the UK and the wider EMEA region are actively deploying artificial intelligence (AI) to drive innovation and improve operational efficiency. A recent IBM Consulting report, ‘The Race for ROI’, highlights that UK firms view AI as a vital tool for freeing up time for high-impact tasks, fostering innovation, enhancing creativity, and supporting strategic decision-making. About 41% of the 500 surveyed UK senior leaders expressed expectations that AI would advance innovation and enable more engaging work, while nearly the same proportion anticipated improvements in strategic planning. This optimism echoes broadly across EMEA, where 79% of senior leaders either use or plan to use AI to accelerate innovation cycles by simulating scenarios and testing hypotheses. Overall, 92% expect to meet their AI-related ROI goals within the next two years.
However, this widespread confidence belies certain critical challenges. Studies reveal a disconnect between firms’ perceptions of their AI-driven innovation and measurable outcomes. For instance, UK companies tend to overestimate their technological innovation, with fewer than one in four having successfully commercialised any technology products or services. Furthermore, while some niche startups achieve notable returns, fewer than one in ten companies reports significant ROI from AI initiatives. Experts attribute these mixed results in part to a lack of investment in human capital: only around 38% of organisations prioritise training and upskilling related to AI transformations, even as 62% acknowledge that much of AI’s potential remains untapped.
The situation is particularly acute in the UK. Although 66% of UK enterprises report productivity improvements from AI and 63% acknowledge operational benefits, only 45% offer AI training across companies or within roles. A combination of internal resistance, cultural barriers, and insufficient workforce development stifles broader AI adoption and scalability, according to an IBM report. This raises concerns that many businesses may be underestimating the need to prepare their staff for AI-related changes, opting instead to rely on AI to replace roles rather than enhance capabilities. IBM UK and Ireland’s chief executive, Leon Butler, emphasises that unlocking AI’s full value depends heavily on workforce transformation and comprehensive upskilling, which can foster resilience and sustained innovation.
Comparatively, the UK lags behind leading Asian economies in AI enterprise adoption. Research indicates that only 37% of large UK companies have actively deployed AI, trailing behind countries such as India (59%), the UAE (58%), and Singapore (53%). Furthermore, 41% of UK enterprises are still experimenting without full deployment. Barriers such as skill shortages, high costs, and data complexity hamper broader adoption. These issues underscore the importance of bridging skill gaps to accelerate AI integration.
Efforts to address these challenges are underway. The UK government has partnered with major tech firms, including Amazon, BT, Google, IBM, Microsoft, and Sage, in an initiative aiming to provide AI skills training to 7.5 million workers. This collaboration forms part of a broader strategy to grow the UK’s AI capabilities and economic competitiveness, reflecting a recognition that workforce development is critical to sustaining leadership in this space. Additionally, a consortium of industry leaders, including IBM, has launched programmes to equip millions of individuals worldwide with digital and AI skills by 2030, reflecting a global commitment to managing AI’s workforce impact.
Academic research further supports the need for educational reforms to prepare workers for AI-driven transformations. A strategic report commissioned by IBM highlights profound skills shortages as fundamental obstacles to effective AI adoption across several countries, including the UK. It calls for well-structured educational pathways tailored to a rapidly evolving labour market shaped by AI technologies.
Looking ahead, businesses across EMEA, including the UK, anticipate increased AI investment in coming years, focused equally on innovation and ROI rather than immediate financial savings. Yet, without significant strides in workforce transformation and addressing cultural resistance, the promise of AI risks remaining partially unrealised. In this context, sustained commitment to upskilling and inclusive training initiatives emerges as paramount for companies seeking to harness AI’s transformative potential fully.
📌 Reference Map:
- [1] (Consultancy UK) – Paragraphs 1, 2, 3, 5
- [2] (IBM Newsroom) – Paragraph 2, 3, 4
- [3] (IBM Newsroom) – Paragraph 4
- [4] (IBM Newsroom) – Paragraph 6
- [5] (UK Government) – Paragraph 5
- [6] (TEHA Group / IBM) – Paragraph 7
- [7] (IBM Newsroom) – Paragraph 5
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is recent, published on 2 December 2025. It references an IBM Consulting report titled ‘The Race for ROI’, which aligns with IBM’s report from 28 October 2025. The report’s findings are consistent with previous IBM studies, indicating a lack of new information. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.
Quotes check
Score:
7
Notes:
The article includes a quote from Leon Butler, IBM UK and Ireland’s chief executive: ‘Unlocking AI’s full value depends heavily on workforce transformation and comprehensive upskilling, which can foster resilience and sustained innovation.’ This quote is identical to one found in IBM’s report from 28 October 2025. The identical wording suggests potential reuse of content.
Source reliability
Score:
9
Notes:
The narrative originates from Consultancy.uk, a reputable UK-based consulting news platform. It references IBM’s official reports and includes a direct quote from IBM’s chief executive, Leon Butler. The UK government’s involvement in AI skills training initiatives is also cited, adding credibility.
Plausability check
Score:
8
Notes:
The claims about AI adoption rates and the need for workforce upskilling are consistent with previous IBM studies and UK government initiatives. The article highlights that 66% of UK enterprises report productivity improvements from AI, and 63% acknowledge operational benefits, which aligns with IBM’s findings from 28 October 2025. The emphasis on the need for comprehensive upskilling is supported by IBM’s report ‘Addressing the AI Transition in Skills and Jobs’, published on 24 January 2025.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is recent and references credible sources, including IBM’s reports and UK government initiatives. However, it recycles content from previous publications, including direct quotes from IBM’s chief executive, suggesting potential reuse of material. The lack of new information and the reuse of content raise questions about the originality of the report.
