Lack of employee skills threatens value of AI investments

New research from Nexthink has indicated that a lack of employee digital readiness could jeopardise returns on significant investments in artificial intelligence (AI).

The survey encompassed 1,100 global IT decision makers and highlighted that 92% of IT leaders believe the latest wave of AI-powered digital transformation is poised to increase digital friction within organisations. According to the findings, fewer than half (47%) of employees currently possess the digital dexterity required to adapt to emerging technological changes, and 88% of leaders expect many workers to feel daunted by advancements such as Generative AI.

IT spending worldwide is projected to rise to $5.61 trillion in 2025, with $644 billion allocated specifically to Generative AI. These figures underscore the scale of investment underway, yet point to significant challenges regarding workforce preparedness. Despite these outlays, 42% of IT leaders disclosed difficulty in assigning precise monetary value to their AI initiatives, while 93% expressed a desire to improve mechanisms for identifying underperforming investments.

Vedant Sampath, Chief Technology Officer at Nexthink, highlighted the human aspect of digital transformation, stating: "Organisations are spending trillions on IT to digitally transform, but without their people on board, it's a fast track to failure. Too many employees are left grappling with unfamiliar AI tools because they lack digital dexterity: the ability to confidently embrace new technologies."

"IT teams, meanwhile, are flying blind without visibility into where things are going wrong. Transformation isn't just about rolling out new tech; it's about enabling people to use it effectively. If businesses don't end this digital dexterity crisis, they'll end up with cutting-edge AI tools - but a workforce that can't use them. That's a one-way ticket to watching AI investments go up in smoke."

The pace of digital change within organisations is accelerating. On average, IT leaders anticipate a 43% increase in the number of applications used over the next three years. Two-thirds (66%) report their organisation is introducing a new application, tool, or platform every month. This pace is placing substantial pressure on IT teams, with 69% admitting there are currently too many users for IT to provide effective adoption support to everyone.

The consequences of insufficient support are felt across several business areas. According to the report, inadequate application rollouts can result in reduced productivity (61%), diminished collaboration (51%), an increase in IT support tickets (46%), and greater overall employee dissatisfaction (46%).

In response, IT leaders are focusing on increasing digital dexterity across their organisations. A substantial 96% stated the need to improve their ability to accurately detect digital friction among users, which they believe would greatly enhance the success of digital transformation projects. As AI continues to reshape the workplace, the same proportion (96%) emphasise the importance of strengthening digital adoption support to help employees adjust to AI, while 95% see tailored digital employee experience (DEX) insights as essential for the future.

The research identifies clear benefits to improving digital dexterity, including faster adoption of new tools (46%), increased productivity (38%), and greater innovation (37%).

"Digital transformation lives and dies by the employee experience," Sampath added. "If IT teams can't effectively guide employees through adoption, businesses will never unlock the full value of their investments. DEX is no longer a nice-to-have; it's business critical. Without it, IT leaders will struggle to measure impact, let alone maximise returns, and risk seeing their transformation efforts stall before they even get off the ground."