UK employers are missing out on AI productivity gains because of gaps in talent strategy

A new survey from EY suggests that many UK organisations are failing to realise the full productivity benefits of artificial intelligence (AI) because their talent strategies are not keeping pace with technology adoption. The EY 2025 Work Reimagined Survey, based on responses from 800 UK employees and 180 employers, found that while the use of generative AI at work is now widespread, it is rarely being used in ways that fundamentally change how people work. More than four in five employees said they use GenAI tools, but this is largely limited to routine activities such as searching for information or summarising content.

The research indicates that this narrow use of AI is one reason productivity gains remain limited. Although 62 percent of employees reported that their workload has increased over the past year, fewer than 5 percent said they were using GenAI in more advanced ways that could significantly reshape processes or roles. EY estimates that organisations with weak approaches to training, culture and rewards are missing out on more than 40 percent of potential AI-related productivity gains.

Concerns about the impact of AI on skills are also evident. More than two in five employees said they worry that overreliance on AI could erode their expertise, reflecting unease about how new tools are being introduced and governed. Less than half of employees said their organisation has a clear vision for how AI should be used, and only 11 percent reported receiving adequate training.

This lack of clarity and capability appears to be contributing to the growth of so-called shadow AI. Nearly a third of employees said they use their own AI tools at work, outside officially approved systems, despite many employers attempting to roll out internal platforms.

EY’s analysis suggests that technology investment alone is insufficient. Organisations that combine AI adoption with strong learning opportunities, supportive culture, attention to employee wellbeing and aligned reward structures perform significantly better. The firm refers to this integrated approach as achieving a “Talent Advantage”, yet only 37 percent of UK employers are currently on track to reach this position.

The survey also highlights a tension between upskilling and retention. Employees who receive extensive AI training, defined as more than 81 hours a year, reported substantial productivity gains, averaging an extra 14 productive hours a week. However, these same employees were far more likely to consider leaving, reflecting strong external demand for AI skills and limited internal progression opportunities.

Despite these challenges, overall employee sentiment appears to be improving. The proportion of UK workers considering leaving their jobs has fallen to 30 percent, the lowest level since 2022, when resignation intentions peaked during the so-called Great Resignation.

The findings point to a growing gap between the availability of AI tools and organisations’ ability to integrate them effectively into everyday work, with human factors emerging as a critical constraint on realising their promised benefits.