AI misalignment costs UK firms billions in lost gains

UK organisations could unlock up to GBP £60 billion a year in productivity gains and operating-cost savings by reducing misalignment between leaders and employees on how artificial intelligence is used at work, according to research from Zellis.

The study says many firms sit in an "AI grey zone": leaders believe adoption is widespread, while staff report patchy access, uneven confidence, and inconsistent use. It frames the challenge as an alignment issue rather than a shortage of tools.

Survey results highlight a gap between management perception and day-to-day practice. Almost all business leaders surveyed (94%) said their organisation uses AI tools, compared with 61% of employees who said they use AI in their role.

Different priorities

The research also points to differing views on where AI should sit in the workflow. Employees were more likely to want AI applied to routine administrative work: 69% said basic data entry and checking should be AI-led, compared with 44% of leaders.

Leaders were more open to using AI in decisions that directly affect careers and rewards. More than a third (35%) said promotions and pay decisions should be AI-led, versus 8% of employees.

Employee involvement also appears uneven. Among leaders in organisations that use AI, 63% said employees or teams are involved in decisions about AI use. Among employees who use AI, 40% said they feel involved, while 33% said they do not.

Productivity claims

The study estimates that better alignment could shift around 8% of working time towards higher-value activities, based on responses from leaders and employees. In addition, 75% of employees and 74% of leaders said productivity would improve if AI were better aligned with how work is done.

Across large UK organisations, the report says that 8% equates to an estimated 1.7 billion working hours a year, valued at around GBP £40 billion in redeployable staff capacity.

Leaders also projected further operating-cost savings of up to GBP £20 billion a year. One in five leaders (20%) said better AI use could cut operating costs by 7% to 10%, equivalent to freeing up to GBP £1 in every GBP £10 for other priorities.

Abigail Vaughan, Chief Executive Officer at Zellis, said the findings show "just how big the AI opportunity really is", adding that "leaving that value unrealised isn't an option".

Rising expectations

The findings suggest growing pressure on employers to provide AI tools and training. A third of employees (34%) said they expect their employer to provide access to AI tools that help them do their job more effectively within the next year, rising to 63% within two years.

Leaders reported similar expectations in skills planning. Nearly half (47%) said advanced digital and AI skills will be required in their organisation within the next year, rising to 77% within two years. Over the same period, 74% said employee upskilling will become increasingly important.

The report links transparency about AI use with retention and trust. Two in five employees (40%) said transparent use of AI would make them more likely to stay with their employer, and 42% said it would improve trust in leadership.

Respondents also associated AI use with reduced stress and higher confidence, particularly among younger workers. Among AI users, 51% of employees and 59% of leaders agreed that AI reduces work-related stress; among employees aged 18 to 34, the figure rose to 62%.

Confidence effects were stronger in the same group: 61% of employees aged 18 to 34 who use AI said it has helped them feel more confident in their role.

Generational divide

The study suggests younger employees are more receptive to discussion and engagement on AI. Among them, 58% agreed that their feedback on AI use is valued and acted upon. Across the wider workforce, 45% said senior leaders are using AI effectively, and 40% said they feel involved in decisions about how it is used.

Usage also varied by age. Millennials and Gen Y were identified as the most active users, with 69% of those aged 29 to 44 using AI at work and 27% doing so regularly. The report argues these behaviours are likely to shape workplace norms as this group moves into more senior roles.

"As AI becomes a baseline expectation for performance, progression and job satisfaction, organisations that fail to provide the right AI tools and training risk losing the best talent and falling behind competitors," said Steve Elcock, Director of Product - AI, Zellis.

"AI doesn't fail because the technology isn't ready; it fails when people aren't. Our findings show employees are enthusiastic about AI when it's used to remove friction from everyday work, but more cautious when it's positioned as the decision-maker in higher-stakes areas like pay and progression. That isn't resistance to AI, it's about education and trust. When organisations are clear that AI is there to inform judgment rather than replace it, confidence grows, capability follows, and value is unlocked. Alignment turns AI from a source of uncertainty into a catalyst for better decisions, better work and more resilient workplace cultures," he added. 

Vaughan said organisations should prioritise alignment over simple uptake. "The findings show a clear advantage for organisations that focus on AI alignment, not just adoption. By embedding AI across HR, pay, WFM and benefits in ways that support people and build trust, employers can improve the speed and quality of their work and create stronger workplace cultures-an approach Zellis helps organisations to deliver," she said.