Kyndryl Report Finds Businesses Seeing AI Returns but Facing Readiness Gaps

Kyndryl released its second annual Kyndryl Readiness Report, drawing on responses from 3,700 senior leaders across 21 countries, announced in a press release. The report shows growing returns from AI investments but highlights persistent gaps in technology infrastructure and workforce readiness.

According to the findings, 54% of organizations report positive returns from AI, up 12 percentage points from last year, yet 62% have not advanced beyond the pilot stage. While 90% of respondents believe they can scale innovation, more than half say their technology stack limits progress. The report also notes that AI spending has increased by 33% on average, with 68% of companies investing heavily in at least one AI area.

Workforce readiness remains a major challenge. Although 87% of leaders expect AI to transform jobs within the next year, only 29% believe their employees are prepared to use AI effectively. The study also reveals cultural barriers to innovation, with nearly half of CEOs saying their organizations move too slowly in decision-making.

Geopolitical and regulatory pressures are prompting organizations to rethink cloud strategies. About three-quarters of respondents express concerns about storing and managing data in global cloud environments, with many shifting toward private cloud models and data repatriation. The report identifies a group of high-performing companies, labeled “Pacesetters,” that are more adaptive in cloud management and less hindered by technology barriers.