Specialist provider of HR, payroll and finance software, MHR, has published new research revealing a significant skills gap among UK businesses preparing to adopt artificial intelligence. Turning insight into impact: Empowering people with AI finds that, while 91 per cent say they are ready to embrace the technology, one in three admit they lack the skills to implement it effectively.
The research, based on responses from over 1,000 UK business leaders, highlights a growing divide between AI ambition and readiness. Around two-thirds (64 per cent) now see AI as a high strategic priority, but fewer than half (48 per cent) feel fully prepared to deploy it in key areas of their business. Some of the barriers are familiar: legacy systems, fragmented processes, and human error. More than one in three respondents (35 per cent) say human error in data entry is still an issue, pointing to a lack of clarity around how AI tools should be used, and 14 per cent admit they don’t know where to start with AI at all.
However, where businesses get adoption right, the benefits can be substantial, individually and collectively. Effective use of AI and automation has the potential to save time, reduce errors, and boost productivity – not by replacing people, but empowering them to do their best work. The report also highlights where AI is already making a difference across UK organisations:
- 62 per cent are using it for financial forecasting to inform financial planning and decision-making
- 60 per cent to support day-to-day processes via co-pilots
- 58 per cent to improve workflow automation
- 52 per cent 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.”
The research also reveals that skills gaps are only part of the picture. Cultural and ethical challenges are holding some organisations back. While AI is often positioned as a strategic lever, it’s not always being implemented inclusively. Just 38 per cent of organisations involve employees in shaping AI use, while a minority say ethical guidelines are unnecessary. Ethical concerns now outpace financial ones: 35 per cent cite ethics as a barrier to AI adoption, compared to 27 per cent who point to budget constraints.
Despite significant investment, many businesses struggle to move beyond initial AI projects. AI is often introduced in a top-down manner, with limited input from those expected to use it daily. This leads to uneven adoption: some employees experiment independently, while others disengage due to unclear guidance or lack of trust. Without a clear, inclusive strategy, AI tools risk being underused, limiting their impact.
“Embedding AI successfully is really a change management challenge,” adds Roe. “It needs to enhance human skills, not bypass them, and that means bringing employees into the conversation early. Understanding where AI can support people in their roles, and managing adoption with care, is the only way to move beyond pilot mode and make AI stick.”
