Kyndryl Report Reveals AI Progress but Warns of Readiness Divide

Kyndryl’s 2025 Readiness Report highlights growing momentum in AI adoption and ROI but warns that gaps in technology infrastructure, skills, and culture threaten to slow progress. Organisations must align talent, technology, and leadership to sustain AI success.

Businesses across the globe are experiencing the rewards of AI adoption, yet they stand at a critical juncture. According to Kyndryl’s second annual Readiness Report, published on 20 October 2025, organisations are reporting strong returns on AI investment while struggling with underlying gaps in technology readiness, workforce skills, and regulatory complexity.

The report, based on feedback from 3,700 senior leaders across 21 countries, indicates that AI progress has outpaced internal transformation.

As Martin Schroeter, Kyndryl’s Chairman and CEO, explains: “A readiness gap exists as enterprises grapple with the promise of transformative value from AI. While 90% of organisations think they have the tools and processes to scale innovation, more than half are stalled by their tech stack, and less than a third say their employees are truly ready for AI. Closing that gap is the challenge and opportunity ahead.”

AI investment accelerates with higher ROI expectations

The findings show a significant 12-point increase in AI ROI compared to 2024, with 54% of organisations now realising tangible benefits. Yet, 62% have not moved beyond the pilot phase.

Investment continues to rise, averaging a 33% increase globally, and 68% of organisations are heavily investing in at least one AI form. Cybersecurity leads as the most common use case, reflecting the dual need to protect and monetise AI-driven operations.

Cloud and data: A shifting landscape

Cloud infrastructure faces new scrutiny amid geopolitical changes and data sovereignty regulations. Seventy-five per cent of leaders express concern about where data is stored and processed, with 65% adjusting strategies to meet new demands.

Many are repatriating data, shifting vendors, and building private cloud models to enhance control. However, 70% of CEOs admit their existing cloud structures evolved “by accident rather than design,” highlighting a pressing need for long-term planning.

People, culture, and skills at the core of readiness

The report identifies human readiness as the next major challenge. While 87% of leaders foresee AI completely transforming jobs within a year, only 29% believe their workforce is ready.

Cultural obstacles also hinder progress; 48% of CEOs say their organisations inhibit innovation, and 45% find decision-making too slow. The study’s “Pacesetters” group shows how companies that invest in culture, leadership alignment, and training outperform others in resilience and adaptability.

Building the foundations for sustainable AI growth

The 2025 Kyndryl Readiness Report draws on both survey data and insights from Kyndryl Bridge, its AI-powered integration platform, to outline how enterprises can future-proof operations.

Kyndryl, operating in over 60 countries, remains a leader in designing, building, and managing mission-critical IT infrastructure, helping global organisations close the gap between AI ambition and operational readiness.

About Kyndryl

Kyndryl (NYSE: KD) is a leading global provider of mission-critical information technology services, specialising in the design, construction, management, and modernisation of complex IT systems that power businesses worldwide. Operating in more than 60 countries, Kyndryl serves thousands of enterprise customers across industries, including finance, healthcare, manufacturing, telecommunications, and government.

The company offers advisory, implementation, and managed service capabilities through platforms such as Kyndryl Bridge, an AI-powered open integration solution that helps organisations optimise performance, enhance resilience, and accelerate digital transformation. As the world’s largest IT infrastructure services provider, Kyndryl plays a central role in enabling businesses to operate securely, efficiently, and sustainably in an increasingly digital economy.